Labor Department finds Capitol Hill cafeteria workers illegally denied more than $1M in wages
Source: Department of Labor
News Release
US Labor Department investigation finds Capitol Hill cafeteria workers illegally denied more than $1M in wages by federal food service contractors
Employers contracted by Architect of the Capitol violated federal prevailing wage law
WASHINGTON Hundreds of workers who prepare and serve meals for Capitol Hill lawmakers and their staffs in the U.S. Senate cafeterias will receive more than $1 million in back wages after a U.S. Department of Labor investigation found their employers failed to pay prevailing wages required of federal contractors.
The departments Wage and Hour Division announced today that Restaurant Associates and its subcontractor, Personnel Plus, will pay 674 workers $1,008,302 in back wages. The division found the two employers violated the McNamara-OHara Service Contract Act when they improperly classified workers paying them for lower-paying jobs than they actually performed and required employees to work prior to their scheduled starting times without compensation. Paying below the required rates also caused the companies to fail to pay the workers overtime at the proper rates.
Employers given the opportunity to earn a profit by providing a service to the government at a cost to the tax payer have a legal obligation to follow the letter of the law, especially when it comes to paying their workers, said the departments Wage and Hour Division Administrator David Weil. Workers in the restaurant industry are among the lowest-paid workers in our economy. Most struggle to afford lifes basic expenses and pay their bills; they shouldnt have to deal with paychecks that dont accurately reflect their hard work and the wages to which they are legally entitled.
The agency also determined the employers failed to pay required health and welfare benefits and violated the SCAs recordkeeping requirements.
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For more information about federal wage laws administered by the Wage and Hour Division, call the agencys toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.
WHD News Release:
07/26/2016
Media Contact Name: Joanna Hawkins
Email: hawkins.joanna@dol.gov
Phone Number: (215) 861-5101
Media Contact Name: Leni Uddyback-Fortson
Email: uddyback-fortson.lenore@dol.gov
Phone Number: (215) 861-5102
Release Number: 16-1552-PHI
Read more: https://www.dol.gov/newsroom/releases/whd/whd20160726
It was impossible to fit the headline in the space allowed.
Hat tip, WTOP
Angry Dragon
(36,693 posts)mahatmakanejeeves
(57,435 posts)The headline wouldn't fit the allotted space either.
elleng
(130,895 posts)pipoman
(16,038 posts)In addition to government venues, this would put them on the ineligible contractors list for CMS (Centers For Medicare and Medicaid services)...a lot of nursing homes and hospitals use contract food service...probably the largest consumers for this service along with schools..
LittleGirl
(8,287 posts)and they still don't believe it's a problem until the Dept of Labor checks it out! Congress is the worst thing to happen to its citizens. ugh.
We have to replace the whole lot of them.
elleng
(130,895 posts)AWFUL that 'we the people' contracted with such.
nykym
(3,063 posts)Should pay the taxes on the back wages also.
mjvpi
(1,388 posts)At how the free enterprise system can do the goverment's job so much more efficiently and make a profit. Following in the footsteps of DOD contractors who provide a win/win for the American people. I'm all about raising my kids to be a line item for a big corporation. Just think of the number of us who could be on equal footing if we would just pass the TPP in the coming Lame Duck session of Congress.
harrose
(380 posts)... I wonder how much of that $1M ended up in Ryan's personal pocket...