Crowne Plaza Employees Can't Cash Payroll Checks

By Justin Foss, Reporter

By Justin Foss

CEDAR RAPIDS - The 120 employees, including the managers and the General Manager are saying other significantly cheaper hotels are providing more service than the Crowne Plaza Five Seasons, located in downtown Cedar Rapids.

The hotel is billed as the premier place to spend the night in Cedar Rapids.

The employees note worst of all, they're not even getting paid to work there.

Front Office Manager John McLaughlin said all 120 employees at the hotel still haven't been paid from their last checks on August 15th...a week ago.

KCRG TV9 followed along as McLaughlin tried to cash his check at Regions Bank. The bank wouldn't cash it, and told him to contact hotel management.

This was McLaughlin's fifth check to bounce in the last few months. To add to the problems, he just had open heart surgery.

"That's exactly what was said to me, there's nothing we can do, I empathize and one thought goes through my mind, what am I going to do when I run out of my heart medication? I go back to St. Luke's and then what? Refer that bill back to the hotel? You know it won't get paid, said McLaughlin.

Back in May KCRG TV9 reported about the hotel's owners having issues with getting out paychecks.

Peter Mathon who represents Kronos, the parent company of the hotel, told KCRG TV9 back then that they were taking steps to fix the problem, and assured it would be fixed.

But Friday night, General Manger David Hockenberry said while the steps were taken, the problems were never fixed.

Hockenberry also said this is just the tip of the iceberg for what's billed as the premier hotel in Cedar Rapids.

KCRG TV9 contacted Peter Mathon Friday afternoon seeking a comment. No comment was immediately available.

Email Justin Foss at Justin.Foss@kcrg.com
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Tuesday, Aug 26 at 11:17 AM in the know wrote ...

Their charter to operate as a business in the state of Iowa was revoked Aug 11, but their doors are still open!!?? This makes no sense but it is true. They are also taking out child support payments from employees checks but not paying the state. The hotel needs to be shut down and a new owner found.

Monday, Aug 25 at 10:13 PM Anonymous wrote ...

MARY VAN HOUTEN AND ALL OTHER WORKERS....STICK IN THERE! AND GOD BLESS! AND GOOD LUCK!

Monday, Aug 25 at 7:30 PM stagehand wrote ...

For the record ,the City does not own the hotel.It does own the air rights and the lot which it rents to Kronos. The City does own the Cell ctr and contracts with Ames based Venueworks to manage the arena, Paramount, and Ice arena. Though it is in effect one building the two companies are in no way affiliated. As for the lack of "good" concerts, that would take more room than I have to outline that issue in this forum

Monday, Aug 25 at 6:44 PM anonymous wrote ...

It seems as if now they owe the city money! I say to the city take your place in line collecting your money.The city allowed these liars and crooks in there to begin with and believed all thier lies. Maybe now that they owe the city something will be done. It has been more than e few paychecks bouncing like the media reported.

Monday, Aug 25 at 1:59 PM Patrick wrote ...

One last thing here. You need to get the politicians involved!!! you know the ones who are suppose to be concerned with the tax paying public and the welfare of such!!! Well where are they all at now? has anyone addressed this situation and the unknown # of other situations like this that effect the honest hard working tax paying citizens? No most likely not, because it does not effect the congressmen and senators personally so they don't care. Stand up for what is right. This is still America

Monday, Aug 25 at 10:31 AM Just to let you know wrote ...

When the flood came to CR...It barely affected the hotel. The hotel was forced to close because downtown was a disaster. When it reopened, rooms were being worked on, and things were okay. FEMA decided to house people at the Crowne because THEY brought moldy homes to Iowa. Then THEY hired hy-vee to make those "sack lunches." The workers are doing what they can so the hotel can still be used since CR needs the revenue with the disaster leaving what was left. But it seems they done care. CLANCY

Monday, Aug 25 at 10:08 AM Someone who knows.... wrote ...

The Crowne Plaza is the only hotel downtown, and its been the best in Cedar Rapids. Now Kronos is taking over and they are all liars and cheaters that dont know American customs. For all of you who keep bashing the CR hotel employees need to stop and think about what ur saying. People go to there job because they need money for there family and just waiting for a bank to take the hotel or Cedar Rapids since they do own it. The city shouldnt have let them come in. CEDAR RAPIDS DO SOMETHING!

Monday, Aug 25 at 9:55 AM Anonymous wrote ...

maybe they should just steal everything not nailed down and hock it

Sunday, Aug 24 at 11:18 PM white snake wrote ...

To say the people who work there should quit and move on is a bit silly. Seriously who is hiring? These poor people have lost vacation time, had their pay cut, and now their insurance taken away. What else can happen? THe media needs to talk about their fellow Iowans, stop believing tripe from the "home office"

Sunday, Aug 24 at 5:17 PM On the other hand wrote ...

The only good thing Kronos did was get rid of some self applauding bloated egos. An overly touted director of sales and an accountant who couldn't be bothered to come to work looking even the least bit professional. Good riddance.

Sunday, Aug 24 at 5:04 PM Wedding... wrote ...

I am suposed to have my wedding here soon, and I am not feeling comfortable with off the the hotels issues. I booked this place well in advance because I love their commerce club. Now I might have to switch venues... I am not happy!

Sunday, Aug 24 at 2:01 PM anonymous wrote ...

I have a family member who works at the crowne plaza. Once again he recieved a letter from his bank that his paycheck bounced which caused him to be overdrawn again. This has been going on for some time now. He also recieved a letter that his health insurance was canceled July 1st for non payment however the money has been taken out of his paycheck all this time. To those who wonder why he still works there because he has not found another job yet.The city needs to find out the real truth

Sunday, Aug 24 at 10:23 AM NLrez wrote ...

All the employees need to walk out and leave the hotel to fend for themselves. Who wants to work for free in this economy?

Sunday, Aug 24 at 10:21 AM BOB wrote ...

Is FEMA still puting flood survivors up in the Crowne Plaza? My mother-in-law stayed there while waiting for a FEMA new trailer. Some of the meals the hotel served were just quickly put together sack lunches. Another flood survivor who went back to his FEMA trailer then back to the hotel was told that he had 60 days then he had to give up his stay at the Crowne Plaza.

Sunday, Aug 24 at 9:44 AM Anonymous wrote ...

the city owns the land that it sits on you would think after the flood they would of shut it down...there has not been any good concerts there for a long time what happen there...the city needs to take back the land and tell them to get out...i would never work for a company that could not pay me...get out now while you can

Saturday, Aug 23 at 9:57 PM Happy previous employees wrote ...

Thank you KCRG for the great new story last night. At the reunion party of terminated previous management/staff of the Crowne Plaza it was the hit of the party when the news came on at 10. All 30 of us stood and cheered knowing it's just a matter of time before someone who cares will come in and take over management of the Crowne. Keep reporting and following the excuses and lies. What goes around comes around Kronos Hotels.

Saturday, Aug 23 at 9:27 PM concerned wrote ...

do they still have a kitchen? i heard that everyone left including the corporate chef. is it true? if this is true, how can you operate a full service hotel without a kitchen and what are the hawkeyes coming there for? they should take their business someplace else because they will not get good service or food. why are people still working there? how can it be a fun place (returnee?) when you can't take care of your family. it's just stupid! wake up and smell the coffee, get out while you can!

Saturday, Aug 23 at 5:22 PM mongo wrote ...

it would be a nice place but since the owners are slumlords our hands are tied. we dont know if they act stupid and know what they are doing or are just plain idiots anyway you look at it they dont care for the employees i am a long term employee and have never seen so much hatred for what they have done to the hotel i work there because i know one day it will get better because the current filth that owns it will be booted out if you dont like the place then simply stop goiing there

Saturday, Aug 23 at 5:02 PM Anonymous wrote ...

Is it true its dump and about fingers in naughty places and then smashed in peoples food. This is what I've heard here today. IS THIS TRUE? If it is I'll vomit

Saturday, Aug 23 at 4:57 PM returnee wrote ...

I returned to the Crown Plaza because of all the diverse and awesome people who choose to stay at the hotel. The problems have been there from day one. All one can do is support the company one chooses to work for and hope for the best. No, it is vastly far from perfect. But, it is still a fun place to be and the people are fantastic! Rome wasn't built in a day, and I truly believe this will be a long struggle. Hang in there, loyal employees! This too will pass!

Saturday, Aug 23 at 2:56 PM Northeast Iowa Taxpayer. wrote ...

Sounds like this company is good at making excuses. I've seen other companies do this right before boarding up their windows. What strafes me is that they think the rest of us are all too ignorant to see through their BS. Here's another article about this pack of liars. http://www.timesdaily.com/article/20080822/ARTICLES/808220320/1011/NEWS&title=Local_hotel_regains_franchise

Saturday, Aug 23 at 2:31 PM 2:23 pm N.P.WROTE for crowne plaza employees wrote ...

on top of check bouncing the employees had lost there health insurance as of 6-01-08 they were told that kronos was work on another insurance and that the employees will get there money back from all the time they take money out of there checks everytwo week.

Saturday, Aug 23 at 1:12 PM Please take notice! wrote ...

Not only have the same same issues been reoccurring in other Kronos owned hotels, at the one in Sheffield, AL--there has also been issues concerning terminated health coverage (that employees are still being charged premiems for), delinquent tax issues, delinquent utility bills, cable bills, food bills, everything. This is pitiful. In this small area though, if this hotel closed--the employees would be very hard-pressed to find other employment.I hope the city doesn't allow them to get it back.

Saturday, Aug 23 at 9:21 AM Kris wrote ...

Why doesn't the Crowne Plaza drop their affiliation with Kronos? These people have a history of not paying their bills with the city, vendors and obviously employees. I would encourage everyone to boycott the use of the Crowne plaza.

Saturday, Aug 23 at 9:04 AM Problem is MUCH bigger than just Cedar Rapids wrote ...

This is not the only property Kronos Hotels owns that is bouncing checks. Do an Internet search for Kronos Hotels checks bounce. They appear to have more problems than bouncing checks. KCRG should do some more digging. http://www.timesdaily.com/article/20080820/NEWS/808200310 http://www.topix.com/state/mo/2008/04/kronos-adding-eight-hotels-to-portfolio-launches-renovations-at-six-properties http://www.waff.com/Global/story.asp?s=8850872 http://www.waff.com/Global/story.asp?s=8794778

Saturday, Aug 23 at 5:19 AM Help wrote ...

The exact same thing is happening at one of their hotels in Sheffield, Alabama, Holiday Inn. The payroll checks are bouncing.

Saturday, Aug 23 at 5:06 AM Alfred Joes Boy wrote ...

KCRG needs to run more cheerfully optimistic articles about how well the economy is doing. "Columbian Bank and Trust Co. of Topeka, Kansas, was closed by U.S. regulators today, the NINTH U.S. bank to collapse this year amid bad real-estate loans and writedowns stemming from a drop in home prices." http://www.bloomberg.com/apps/news?pid=20601103&sid=aJqU2qEw3_2c&refer=us

Saturday, Aug 23 at 3:28 AM Miss S. wrote ...

I used to work there about 5 years ago. even back then, this place was a dump! It was dirty, over priced, and the place was literally falling apart. Some of the employees would stick their fingers in water glass for banquets and weddings. I would never eat there for a function. The Top of the 5 was the only clean place to eat. But one thing for sure, the Hawkeye football team loved staying here before every home game.

Saturday, Aug 23 at 12:24 AM Kate wrote ...

my dad used to work there.. people were fleeing like someone from a sinking ship.

Friday, Aug 22 at 9:42 PM Joyce wrote ...

How is it that they are allowed to keep their doors open when they can't pay the employee's. But on the other hand why would you continue to work for a company that can't pay you?

Friday, Aug 22 at 9:41 PM Shawn G wrote ...

What a surprise. Seriously, this place is a dump. The meida just buys their story time after time. I hope this place is closed up and maybe they can get a chain in that can actually pay the people who work there? Doesn't the city own the hotel or something?

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