Weaver Pays Over $400K In Earnings, Civil Penalties Related To Labor Laws, H-2B Visa Program

Trainer George Weaver has agreed to pay $325,431 in owed wages to employees and $99,567 in civil penalties related to violations of labor and immigration laws, according to a report by The Miami Herald Friday.

A federal judgment states 59 employees will receive $2,548 each in what the government said was unpaid overtime pay. A portion of the penalties assessed to Weaver were for incorrect timekeeping practices, according to the report.

Several New York-based trainers have come under scrutiny by federal agencies for their employment practices in recent years, particularly timekeeping. Federal standards require employers to have an accurate timekeeping method and pay employees hourly, with a change in rate for overtime pay; this is not typically the method of payment for backstretch employees, who are more commonly paid a flat rate based on the number of days, weeks, or horses worked.

The U.S. Department of Labor also assessed penalties for what it said were violations of the federal H-2B visa program, including adherence to the program's minimum wage standards, charging employees for costs related to utilizing the program, and trying to discourage employees from reporting to federal investigators or cooperating with the proceedings.

In 2019, the Saratoga Institute on Equine, Racing, and Gaming Law touched on the topic of H-2B and wages law in an effort to correct common misconceptions about the federal requirements. You can read more about how those issues impact racing employers from our reporting here.

Read more about the recent Weaver settlement at The Miami Herald

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Pandemic Affects Visas, Limiting H-2B Workers

SARATOGA SPRINGS, N.Y. — George Weaver feels it. So do Chad Brown, Todd Pletcher and Shug McGaughey. Among the many new issues that Thoroughbred trainers across the country must contend with during the 2020 pandemic is a shortage of skilled staff.

In recent years, it has become more difficult for horsemen to secure all the H-2B visas that they desire to legally bring foreign nationals into the country as guest workers. The arrival of COVID-19 in late winter closed U.S. consulates, compounding the problems, preventing visa holders from getting their entry documents from the State Department. On June 22, President Donald Trump signed an executive order suspending the visa program through December, a move designed to help the tens of millions of unemployed Americans find jobs.

“It is a problem,” said McGaughey, who is missing some of his hotwalkers and could use another exercise rider. “The bad part about it is that Trump, or the government, just does not realize that these are jobs that American people refuse.”

That’s the rub. One of the key provisions of the H-2B visa program is that the jobs must first be offered to Americans before foreign residents can be hired. Trainers say they are always interested in hiring U.S.-based employees for the positions, primarily grooms and hotwalkers.

“The people that are needed, nobody wants to do this work,” Weaver said. “It’s not even about the money, nobody wants to wake up at 3:30, 4:00 in the morning every single morning or even six mornings a week. They don’t want to do it.”

Immigration attorney Will Velie of Norman, Oklahoma, is an expert whose Horseman Labor Solutions company has been helping trainers staff their stables with guest workers for 15 years. Velie estimated that approximately 1,500 people come into U.S., primarily from Mexico and Central American countries to work in the Thoroughbred racing industry. He said it costs trainers between $1,500 and $2,000 per worker in fees and legal expenses. In addition, trainers must pay for travel back and forth to the employees’s home countries and other costs.

“They would not do this if they didn’t have to,” Velie said. “The only reason they are doing this is because they don’t have the people to do the work anymore.”

Velie said the pandemic, which led to border closings and the pause on the admission of people who do already had been approved for visas, has made a tough situation worse.

“It’s particularly bad this year,” he said. “It’s always bad. It’s been bad for a long time. So you’ve got this confluence of factors that make it to where it is very difficult to find enough workers on the backside of the track, even with 25 million unemployed people.”

Weaver said none of the dozen or so internationals he had planned for are with him this summer at Saratoga Race Course. His exercise riders are helping out with hotwalking and he said that some of his grooms have to deal with six or seven horses every day, rather than the norm of four or five.

Like the other trainers, Weaver said his stable is getting by, but he is frustrated by how the situation played out despite doing the proper planning.

“It cost a lot of money, and when you pay the lawyer and you pay the stuff and you don’t get your people, it’s like you just [wasted] a bunch of money and you don’t have your help,” he said.

Pletcher’s stable has been hit hard. He said that none of his 35 guest workers was able to come into the country before the program was closed.

“It has affected everyone,” he said. “We have a large number of visa employees that were approved but have not been allowed to come over. We’ve had to have our staff pull off some overtime, put in extra hours and extra work. Yeah, it has been a hardship for a lot of people. This would be our peak time of the year, so we would have over 100 employees. We have similar numbers, in some cases less-experienced.”

Pletcher nodded at the suggestion that some of his staff is receiving on-the-job training.

“Pretty much,” he said. “At the same time you want new people coming into the business and learning. A lot of our visa workers have been with us for a long time, know the system and are skilled professionals.”

Eric Hamelback, the CEO of the National Horsemen’s Benevolent and Protective Association, said that the jobs Pletcher and the other trainers must fill might seem to the casual observer to be low-level duties easy for most people to handle.

“It is a skilled labor. Yes, it’s hard work. It is agricultural,” he said. “But it’s skilled when you are dealing with animals, whether they are a multi-million dollar horse or one that is a $5,000 claimer. They can kill you in a heartbeat and it takes a certain strength and skill to work in this field. You can’t just grab someone off the street and expect them to be able to hotwalk, much less groom.”

Hamelback said that his organization, which represents nearly 30,000 trainers and owners, is working with the National Horse Council and the National Thoroughbred Racing Association to build congressional insight and support for changes to help the industry with the visa program.

Every year, the Thoroughbred industry is vying for a share of the 66,000 H-2B visas that are allotted. During the year, the White House may add more visas to the pool. The demand is intense: 100,000 applications for the 33,000 H-2B visas available in the first round for 2020.

“This is a big topic and it is a lot of work,” Hamelback said.

Much like Pletcher, Brown has a very large operation and relies on foreign workers to fill some of his staff positions.

“It’s been challenging,” he said. “Thankfully, we have some of our workers who have been able to successfully come in before some stuff got shut down. Not all of them. I know some other trainers that are not in a good spot. It has really affected us. It has caused us to really change the management of our stable, such as how many we are able to have in New York.”

Brown continued, “Thankfully, our team has all pulled together and everyone has picked up the slack. Our business is no different than a lot of other businesses, probably, just trying to get through this pandemic, knowing that there is probably light at the end of the tunnel, that it’s not going to be this way forever. Keeping that mindset. Getting through each day the best we can.”

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From Gator To Gatorade: Backstretch Café Working Overtime To Serve Indiana Grand

The Backstretch Café at Indiana Grand Racing & Casino has long been a staple for horsemen and horsewomen working in the barn area. Earlier this spring, new safety measures were put in place to follow Covid-19 state restrictions, which altered the business model of the restaurant, located at the entrance to the barn area.

Backstretch Café Food and Beverage Supervisor Melissa Ruddick jumped into action and came up with a plan to serve those who work in the barn area. All she needed was a Gator and some Gatorade to get started.

“We wanted to find a way to continue to serve all the people that work both in the barn area and in our track maintenance department because it's difficult for them to leave and go off property to get food and drinks when they are working,” said Ruddick. “So, we began preparing portable options. We provide service six days a week and now make three rounds on race days to accommodate everyone.”

Ruddick, along with Kayla Dudley, start before morning training hours get underway. Their day begins at 5:30 a.m. and they travel by Gator from barn to barn, offering everything from breakfast sandwiches to cold drinks and hot coffee. Their breakfast service continues until approximately 10 a.m. before they head back to the Café and begin preparing lunch. Pre-packaged sandwiches are put together and the ladies follow the same process through the barns with a flat price of $5, which includes a food item and drink.

“We try to have a few different specials every day for breakfast and lunch,” added Ruddick. “We have even created bags for each order that already includes disposable utensils, condiments, and napkins so it's easy for them to carry. We are cash only to make the process as quick as possible and to avoid as much contact as possible to follow restrictions.”

Ruddick and Dudley make one final swing through the barn area after racing begins at 2:20 p.m. and wrap up their day around 5 p.m., giving participants during the afternoon racing card the opportunity to grab something before or after a race. Once the delivery day is complete, they go through all safety procedures to ensure everything has been sanitized and is ready to go for the next day's deliveries.

“Melissa and Kayla have a sincere care for our horsemen and employees and this service has been very well received, “ said Eric Halstrom, vice president and general manager of racing. “The pandemic has forced us into thinking differently about a lot of things which includes how we serve food while following strict protocols in the barn area. We're lucky to have such a wonderful Food and Beverage Team.”

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Del Mar Backstretch Workers To Receive Gregson Foundation Coupons For Food, Basic Necessities

Backstretch workers at the upcoming Del Mar summer meeting will continue to benefit from a recent special coupon program that has been financed by the Gregson Foundation, the California organization founded to aid those workers and enhance their lives.

In a response to the COVID-19 pandemic and the extra burden placed on the workers, the foundation twice issued coupons during the month of April covering the stable area workers of 149 different trainers – 82 of them in Southern California and 67 in Northern California. Approximately 1,350 workers received the coupons.

Each worker received two of the $5 coupons twice, which in turn could be redeemed at the stable area cafeterias – Debby's Café at Santa Anita Park and Kan's Cafeteria at Golden Gate Fields. They also were good at California Thoroughbred Trainers' recreation hall stores for the purchase of food and snacks and everyday necessities, such as hygiene products, over-the-counter medicines, and laundry needs.

All told, the redeemed coupon value amounted to $26,690.

“Our backstretch workers are very appreciative of a seemingly small perk like this,” said Gregson Foundation president Jenine Sahadi. “They don't have a lot and they work hard with our horses and something like this is a recognition of the important jobs they perform. This was met with such positive feedback that we're going to do it again at Del Mar.”

Sahadi, previously one of America's most successful female trainers, has headed the foundation since 2001. The 501(c)3 nonprofit charitable organization, named to honor the driving force behind its establishment, the late trainer Edwin Gregson, raises funds to benefit backstretch workers and their families.

Over the past two decades, the foundation has provided over $1.3 million in scholarship grants, paying the costs of attendance at various colleges, universities and trade schools for 625 sons and daughters of California grooms, hot walkers, exercise riders and assistant trainers. Many of these children are the first in their families to go on to higher education.

Further, the Gregson Foundation has raised more than $5 million through grants, donations, fundraising events and Charity Day funds. Those monies have gone toward providing various activities annually for the workers and their families, such as softball and soccer leagues, family excursions to amusement and water parks, zoos, fishing trips, professional sporting events, holiday festivities, picnics and Bar-B-Qs. The foundation functions both in Southern and Northern California.

Del Mar's 2020 racing season opens on Friday, July 10 and runs through Labor Day Monday, September 7.

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