Employees working in U.S. Senate cafeterias will receive more than $1 million in back wages after a U.S. Department of Labor (DOL) investigation found wage and hour violations.
For a Limited Time receive a
FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with
customized information for your industry, location, and job.
Get Your Report Now!
DOL determined that the workers were required to perform work before their shifts started and were not paid for that time, in violation of the Fair Labor Standards Act (FLSA).
They also were improperly classified under the McNamara-O’Hara Service Contract Act (SCA) and paid a lower rate than that law requires, which meant they were underpaid for overtime as well, DOL alleged. In addition, their employers failed to pay for required health and welfare benefits and violated the SCA’s recordkeeping requirements, according to DOL’s press release.
The contractor that employed the workers, Restaurant Associates, and its subcontractor, Personnel Plus, will pay $1,008,302 to 647 workers to resolve the findings.
“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 David Weil, administrator of the department’s Wage and Hour Division.
“The division will remain vigilant in its enforcement of these laws to protect both workers and employers,” added Mark Watson, a WHD regional administrator.
WHD also said it is considering whether to seek debarment of the employers from obtaining contracts with the federal government in the future.