Myrtle Beach Resort Accused of Withholding Commissions to Former Workers, Federal Lawsuit Asserts
In a shocking revelation, a resort in Myrtle Beach is facing serious allegations. A federal lawsuit accuses the resort of withholding commissions and other compensation to several ex-employees. Such actions are said to have involved hundreds of individuals who were previously employed at the facility, dubbed Westgate Oceanfront Resort.
Allegations against Westgate Oceanfront Resort
The lawsuit, submitted in the U.S. District Court’s Florence division, alleges that Westgate Oceanfront Resort did not disburse reserves from previously accumulated commissions when workers resigned or were fired. The controversial issue has stirred heated debates, given that the ex-employees were entitled to any money in these reserve accounts if not charged back to the company.
According to the lawsuit, the resort management had a pattern and practice of retaining and converting employees’ reserve funds. This problem arises especially when outgoing employees are often informed their reserve accounts either depleted or that they, the terminated employees, owe more money than is available in their reserve accounts.
Lorem plaintiff Jane Helms
Jane Helms, the lead plaintiff in this case, reportedly worked in the resort’s timeshare division where workers were paid based on the number of sales or customers they could convince to take tours. This was done on a commission-only basis. Helms claimed that as part of their employment terms, they had to maintain reserve funds ranging between $3,000-$4,000. These funds were meant to reimburse Westgate in case of rescinded commissions. Helms alleges that these reserve funds were, unless charged back by the defendants, their property and those of other similarly situated employees.
Lawsuit’s Terms and Conditions
The lawsuit gives the court jurisdiction over this matter, stating that “This Court has jurisdiction because at least one class member is of diverse citizenship, there are more than 100 Class members, and the aggregate amount in controversy exceeds $5 million.” As per the lawsuit, the Westgate Myrtle Beach and its parent company are being accused of breach of contract, violations of the state’s Fair Wages Act, unjust enrichment, conversion, and breach of good faith.
Central Florida Investments LLC, Westgate’s parent company has been made aware of these allegations but has not yet responded. The lawsuit’s filing last Thursday sparked concerns about worker rights and fair payment systems, leading to renewed discussions about the state’s labor laws.
This report is a developing story, and HERE News Network will provide updates as more information emerges.
