$1.7 Million In Unpaid Benefits
In December of 2009, the U.S. Department of Labor found that VMT wrongly withheld $1.7 million in health and welfare benefits from nearly 500 workers at the Washington Center for Aging Services (WCAS), a D.C.-owned nursing home that it managed for the city.
Secretary of Labor Hilda L. Solis commented on the case, saying, “Contractors have an obligation to pay service employees the proper fringe benefits for the work they perform.”
The DOL’s Wage and Hour Division determined that from December 2006 to December 2008, VMT underpaid health and welfare fringe benefits to 483 employees, resulting in a total of $1,715,815 due those employees.
The DOL found that VMT had violated the fringe benefits provisions of the McNamara-O’Hara Service Contract Act (SCA), which holds that D.C and federal contractors must meet the prevailing wage and benefit standards in their area or those in a previous contractor’s collective bargaining agreement.