White Lodging to Pay City of Austin $2.4 Million

    A labor dispute that has been ongoing for years ended on Oct. 1 when the Austin City Council approved a settlement that requires White Lodging to pay the city $2.4 million, according to KVUE ABC.

    In 2011, the council approved an incentive deal that waived $2.4 million in fees, given that White Lodging paid construction workers a prevailing wage. After the city learned that 12 workers were underpaid, the deal was revoked.

    The settlement requires White Lodging to drop its lawsuit against the city, and the city will drop the counter suit.


    The article cites the following statement from Kathleen Sebastian, White Lodging’s director of communications:

    “The fee waiver dispute was an unfortunate exception to what has otherwise been a great working relationship with the city. We have been pleased with the city’s support and cooperation in our development of the hotel. The reception of the hotel by visitors to Austin and local Austinites alike has been overwhelmingly positive, and we are pleased that we were able to settle the dispute by making a payment that will largely be used by the city on programs designed to develop and benefit the downtown Austin business district.”