Staff at the luxury Escarpment Group of Blue Mountains hotels have been warned against talking to the media or they will face the threat of legal action and fines following the Herald's exposure of exploitation of visa workers.

The Department of Home Affairs and the Fair Work Ombudsman have confirmed they are investigating the hotel group after a Herald investigation found it is clawing back wages from migrant workers through overpriced accommodation and unpaid overtime, leaving them with little more than $300 a week in their pockets.

Arindam Biswas who worked as a desk clerk at the Hydro Majestic in the Blue Mountains. Credit:Wolter Peeters

The investigation revealed the Escarpment Group of hotels, which includes Lilianfels and Echoes in Katoomba, the Hydro Majestic in Medlow Bath, the Parklands Country Garden and Lodges in Blackheath, and the Convent Hunter Valley, deducts $480 a week from their wages for half a small bedroom which they share with another worker.

Those who ask to move out to find their own accommodation are threatened with the cancellation of their internship contract and visas which the Escarpment Group sponsors.