Motel 6 to pay $7.6 million to guests reported to immigration

PHOENIX — The national budget chain Motel 6 has agreed to pay up to $7.6 million to Latino guests who say the company’s employees shared their private information with immigration officials, according to a proposed settlement filed in federal court.

A federal judge must still approve the proposal filed last week in U.S. District Court in Arizona.

The agreement between Motel 6, which is owned by G6 Hospitality LLC in Carrollton, Texas, and guests represented by the Los Angelesbased Mexican American Legal Defense and Education Fund, springs from a class-action lawsuit filed in January.

A joint statement released Wednesday by the lodging company and the civil rights group said that when news of the information-sharing practice emerged in September 2017, Motel 6 “launched an investigation and issued a clear directive to all locations nationwide, emphasizing the practice is prohibited.