A Republican-owned hotel chain, the Greenbrier in White Sulphur Springs, West Virginia, is reportedly facing a significant financial issue, owing $1.2 million in employee health insurance contributions.
According to a letter from the Greenbrier Council of Labor Unions, the hotel, owned by Governor Jim Justice’s family, has become “severely delinquent” in payments to its health insurer and has failed to return employee health insurance contributions regularly deducted from their paychecks.
The Amalgamated National Health Fund stated that the Greenbrier is four months behind on contributions, totaling about $2.4 million, with another $1.2 million due shortly. The union’s letter expressed concern, stating, “Our members have upheld their end with hard work and payment, while the Greenbrier has fallen short on its obligations.”
If the issue isn’t resolved soon, the hotel could face legal repercussions for the loss of health coverage. The situation is further complicated by ongoing paycheck deductions from employees for health insurance, despite the hotel’s delinquency.
In addition to these financial hurdles, recent advertisements indicate that the historic hotel might go up for auction this month. The hotel’s $142 million loan was sold to Beltway Capital, which has declared it in default.
To prevent the auction, Greenbrier’s lawyers filed for a preliminary injunction, arguing that a 2014 deed was invalidly signed and claiming verbal agreements with JP Morgan have been violated. They also highlighted potential job losses that would significantly harm the local economy.
Around 2,000 people are employed at the Greenbrier during peak season. The hotel previously faced bankruptcy before being purchased by the Justice family in 2009. For employees worried about losing health insurance, the situation raises serious questions about the fate of their contributions.
Union representatives emphasize the urgency of finding a resolution to avoid serious legal and financial consequences. “The stakes are high, and it’s essential for the Greenbrier to reach an agreement with its employees to prevent escalation,” they stated.