Source: Ben Penn, Daily Labor Report, October 12, 2017 (Subscription required)
The Labor Department won’t ban a Senate cafeteria contractor from government business over charges it didn’t pay workers properly. The DOL settled the case with contractor Restaurant Associates by entering into a compliance agreement with the food service provider, a company spokesman told Bloomberg BNA. The settlement doesn’t include the harsher penalties that had been sought by the Obama administration. A DOL administrative law judge approved the settlement earlier this month, according to an order appearing on the agency website Oct. 12. The company and a DOL regional solicitor’s office agreed that instead of a debarment, Restaurant Associates would abstain from bidding on new federal service contracts for two years, the order states. …
GAO: Architect of the Capitol’s Oversight of the Senate Food Service Contract
Source: William T. Woods, Government Accountability Office, GAO-17-481R: May 12, 2017
The Architect of the Capitol administers contracts to acquire goods and services for the U.S. Capitol complex. In 2015, questions arose regarding the wages for workers employed by the Senate’s food service contractor. We reviewed the AOC’s oversight of this contract and found that it had considered this contractor’s performance satisfactory in 2015, and extended its contract for another 7 years. However, after the wage issues were identified, the agency enhanced its oversight and required the contractor to provide data on wages paid to its employees.
Read full report.
Feds Go After Concessions Company That Shorted Senate Workers $1 Million
Source: Dave Jamieson, Huffington Post, December 30, 2016
The Labor Department wants to bar a concessions company from receiving new federal contracts, after the company allegedly stiffed low-wage workers inside the U.S. Senate out of $1 million. In June, the department announced that Restaurant Associates, a subsidiary of the food service conglomerate Compass Group, would repay 674 Senate workers back wages after the company failed to pay employees the prevailing wage under federal law and didn’t compensate employees for all the hours they worked. Restaurant Associates has since paid back the workers. But the department went a step further on Thursday, filing a complaint requesting that the company be forbidden from receiving new contracts for a period of three years. The request will now go before an administrative law judge. If approved, it will only affect future contracts, not the current one at the Senate building, which runs through 2029, according to the Labor Department filing. … According to the Labor Department, Restaurant Associates misclassified workers by putting them in lower job categories, resulting in lower pay. The company said the misclassification was an honest mistake, resulting from “administrative technicalities related to [workers’] evolving day-to-day work responsibilities.” In a statement Friday, Restaurant Associates said it was “surprised and disappointed” that the Labor Department was seeking disbarment: “Restaurant Associates, which had no history of previous [prevailing wage] violations, fully cooperated in the investigation. The company immediately paid all back wages owed and made all changes to pay practices going forward as requested by DOL. … DOL’s decision is unprecedented in these circumstances.” …
US Capitol workers want their voices heard over wage theft
Source: Alba Morales, The Hill, September 20, 2016
Last month, the U.S. Department of Labor announced that U.S. Senate federal contract workers like me had been robbed of over $1 million dollars from our paychecks by our employer, Compass Group. DOL found that Compass had been paying us less than the legal rates for our jobs, had not being paying us proper overtime or even for all the hours we worked, and had not kept proper payroll records. Within weeks, some of my co-workers started receiving as much as $20,000 in back-pay awards. But I only received $240, with no explanation of how it was calculated. I’ve worked at the Senate for over a decade and I believe the company likely stole much more than a couple of hundred bucks from me. And I’m not alone. Over a dozen Senate contract workers received little or no compensation as wage theft victims. Worst of all, neither myself, nor any of these workers were contacted or interviewed by the Labor Department or the Architect of the Capitol, the agency that oversees the contract, as part of the investigation. … The truth is that this is a symptom of a bigger problem: Workers and our representatives have not been invited to participate in the investigation and settlement talks even though we exposed the illegal conduct and are directly impacted by the results. If this were a court case, the victims would have their say, but we are low-wage workers who can’t afford a private attorney. That’s why workers are sending a letter to the Architect of the Capitol and the Department of Labor to request that our voices are respected. For us, respect means a willingness to bring workers into the process. …
House and Senate Restaurants: Current Operations and Issues for Congress
Source: Sarah J. Eckman, Congressional Research Service, August 23, 2016
Those involved with restaurant administration in the House and Senate have often considered how management choices affect operating costs, services available, oversight, and other elements of the restaurant systems. For much of their histories, the House and Senate operated their own restaurants, but since 1994 in the House and since 2008 in the Senate, private vendors have run the restaurants. In August 2015, the House entered an agreement with Sodexo to operate the 17 facilities in the House restaurant system, subject to direction from the Chief Administrative Officer (CAO) and the Committee on House Administration. In December 2015, the Senate entered a new contract with Restaurant Associates to operate the 12 facilities in the Senate restaurant system, subject to direction from the Architect of the Capitol (AOC) and the Committee on Rules and Administration. … Food and price issues, along with other day-to-day operational issues, including personnel matters, are largely the responsibility of the restaurant contractors. Some Members and observers have raised concerns about the degree of accountability for the House and Senate restaurant contractors, believing that the restaurants’ administration reflects upon Congress and that the restaurants should set an example for other businesses to follow. Although the House and Senate are responsible for restaurant oversight, the delegation of restaurant operations to private contractors means the chambers have less control over employee wages and benefits, procurement, or other business decisions that affect the restaurant systems. …
Read full report.
Senate Cafeteria Workers Will Receive $1 million in Backpay from Restaurant Associates
Source: Lauren Godles, On Labor, July 26, 2016
Today, the Department of Labor announced today that the Senate cafeteria workers who were illegally denied wages will receive $1 million dollars in backpay from Restaurant Associates (RA) and its subcontractor, Personnel Plus. The money will be split among 674 employees, though DOL did not specify how much particular individuals will receive. … In an official investigation, DOL’s Wage and Hour Division (WHD) concluded that RA misclassified the cafeteria workers, in violation of the Service Contract Act. RA was also found to have violated the FLSA. According to the Associated Press, the WHD is considering whether RA should be banned from future government contracts. …
Most Senate cafeteria workers were mistreated on wages, top Capitol official says
Source: Mike DeBonis, Washington Post, March 21, 2016
A majority of the roughly 90 blue-collar restaurant workers serving the U.S. Senate were improperly classified by their private employer, a top U.S. Capitol administrator told a congressional committee last week, putting them at risk of being underpaid and prompting a Labor Department inquiry into the matter. The workers employed by Restaurant Associates have sought higher wages for more than a year, and a December contract renegotiation appeared on its face to deliver better pay and benefits. But several workers said they were subsequently reclassified into new, lower-paying jobs, thus cheating them out of the raise they were expecting. … Ayers’s deputies then interviewed 86 of the cafeteria and restaurant employees. That inquiry determined that 35 employees were classified properly, said Laura Condeluci, a spokeswoman for Ayers; the other 51 were not. Restaurant Associates immediately reclassified 35 of the 51 misclassified workers and delivered back pay, leaving 16 in dispute, Ayers said. Half of those are being resolved through negotiations; the rest have been referred to the U.S. Department of Labor for resolution.
Senate Cooks Say Contractor Dodged Raises
Source: Rhonda Smith, Daily Labor Report, February 1, 2016 (Subscription Required)
The seven-year contract extension between Restaurant Associates and the AOC took effect Dec. 14. As a result, Restaurant Associates increased wage rates for about 80 percent of the 115 employees who work in Dirksen Senate Office Building eateries and in the Senate dining room. In the complaint, signed by attorney George W. Faraday, legal and policy director for Good Jobs Nation, the group said the minimum wage rates to which Compass Group employees at the Senate are legally entitled are established by the federal Service Contract Act for each occupational category. The letter notes that the new wage rates resulted in substantial wage increases for Compass workers classified in the lowest-paid SCA occupational categories, including cashiers, dishwashers and food-service workers. But the federal contractor downgraded various cooks to food-service worker positions, it added, which reduced their hourly wage rate. …
Senate Food Workers Allege ‘Raise Theft’
Source: Bridget Bowman, Roll Call, January 29, 2016
According to the complaint, congressional staff members were told at a Dec. 14 briefing that minimum wages for Level 1 cooks would be raised by $3.65, to $17.45 an hour, and Level 2 cooks would would receive a $5.70 increase to $19.50 an hour. But the complaint alleges several cooks were reclassified as a lower-tier “food service worker,” meaning their wages did not increase as expected. Under the new contract, food service workers’ minimum wage increased to $13.80 per hour. A labor organizer said so far they know of roughly a dozen workers who have had their classification downgraded, even though they still perform the duties of a cook.