Marriott forced to pay almost $3M to former Times Square hotel workers who were denied full severance pay

The Marriott Marquis hotel in Times Square.
The Marriott Marquis hotel in Times Square. Photo credit Google Street View

NEW YORK (1010 WINS) -- New York Attorney General Letitia James announced Thursday that Marriott International Inc. will pay $2.95 million to more than 500 workers who were fired from the company’s Times Square hotel in order to compensate for insufficient severance pay.

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An investigation by the Office of the Attorney General’s Labor Bureau found that non-unionized workers at the hotel were promised the same benefits as unionized workers, but severance pay for non-union staff was capped at 10 weeks while their unionized colleagues had no limit.

Almost 1,100 employees were furloughed at the Marriott Marquis hotel in March 2020 when the pandemic started and about 800 workers were fired in March 2021.

James’ office started investigating a month later. She found Marriott violated a civil fraud law by applying unequal severance pay.

“Marriott fired hundreds of employees last year due to the pandemic and to add insult to injury, deprived them of the financial security they needed during that critical time,” said James in a statement. “No individual should ever feel the hopelessness that these workers felt when Marriott failed to deliver the severance pay they were promised.”

Featured Image Photo Credit: Google Street View