• Government Contract Employers Ordered to Pay Over $1M in Back Wages
  • August 5, 2016
  • Law Firm: Pessin Katz Law P.A. - Towson Office
  • Restaurant Associates and its subcontractor, Personnel Plus, have been ordered by the Department of Labor to pay 674 workers $1,008,302 in back wages. The two employers contracted with the U.S. Government to food preparation and meal service for Capitol Hill lawmakers and their staff in the U.S. Senate cafeterias.

    An investigation by the Department of Labor revealed that the two employers violated the McNamara-O’Hara Service Contract Act (“SCA”) which applies to every contract valued in excess of $2,500 entered into by the U.S. Government or the District of Columbia and requires employers to pay service employees in various classes no less than the wage rates and fringe benefits found prevailing in the locality, or the rates, including prospective increases, contained in a predecessor contractor’s collective bargaining agreement.

    The employers violated the SCA by improperly classifying workers and requiring employees to work prior to their scheduled starting times, without compensation. The improper classification not only meant employees were being paid for a lower paying job than what they were actually performing, it also meant they were not paid overtime at the proper rate. The employers were also found to have violated the Fair Labor Standards Act.