Marketing Funds

Traverse, MI: (Apr-23-08) A class action lawsuit was brought against Grand Traverse Resort & Spa by several resort employees, who alleged that the resort withheld money from their paychecks that was used for resort marketing. The suit claimed that the deductions were initiated by the resort's former owners; KSL Recreation Inc. Records show that they eventually were phased out by the current owners, the Grand Traverse Band of Ottawa and Chippewa Indians, after the tribe bought the resort in 2003. The resort was sued in 2007, stating that it violated state employment and wage laws by making over $150 bi-weekly paycheck deductions for numerous employees at its health spa that were used to help fund the resort's marketing efforts.

In a recent development in the case, sources on both sides stated that the parties had reached a settlement agreement, in which the Grand Traverse Resort & Spa agreed to pay $78,000 to scores of resort employees to resolve allegations. Sources stated that the settlement will be split between a group of around 150 current and former resort workers. As part of the settlement agreement, the plaintiffs dismissed their allegation that charged tips and commissions on retail products were not properly paid. [TRAVERSE CITY RECORD-EAGLE: GT RESORTS SETTLES EMPLOYEE PAYCHECK CASE]

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