The U.S. Department of Labor has initiated disbarment proceedings against the New York City company that holds the contract to operate the U.S. Senate’s cafeteria in Washington, D.C.
The problem: Persistent wage-and-hour violations that wound up stiffing cafeteria workers.
Restaurant Associates and a subcontractor, Personnel Plus, have agreed to pay 674 current and former workers more than $1 million in back pay after DOL investigators determined the companies violated the pay provisions of a federal contracting statute. As a result, the Labor Department has begun proceedings to ban Restaurant Associates from working on any federal contracts for three years.
Note: Federal dollars come with lots of strings attached. Higher wages and increased government scrutiny are just two. Employers must understand the wages they are obligated to pay before bidding on federal work.