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Secretary of Labor Thomas E. Perez
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News Release

WHD News Release: [12/15/2009]
Contact Name: Joanna Hawkins
Phone Number: (215) 861-5101
Release Number: 09-1415-PHI

US Department of Labor recovers more than $1.7 million in fringe benefits for 483 employees of VMT Long Term Care Management Inc.

WASHINGTON — VMT Long Term Care Management Inc. has been cited by the U.S. Department of Labor for underpaying employees' health and welfare fringe benefits, violating the fringe benefits provisions of the McNamara-O'Hara Service Contract Act (SCA).

The SCA requires contractors and subcontractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates and fringe benefits — which include vacation, holidays, and health and welfare — found prevailing in the locality, or the rates (including prospective increases) contained in a predecessor contractor's collective bargaining agreement.

"Contractors have an obligation to pay service employees the proper fringe benefits for the work they perform," said Secretary of Labor Hilda L. Solis. "When they don't, the Labor Department will take the proper action to ensure workers receive the benefits to which they are entitled."

An investigation conducted by the department's Wage and Hour Division determined that from December 2006 to December 2008, VMT Long Term Care Management Inc. underpaid health and welfare fringe benefits to 483 employees, resulting in a total of $1,715,815 due those employees.

VMT Long Term Care Management Inc. was contracted by the government of the District of Columbia to manage and operate the Washington Center for Aging Services, a certified nursing facility and geriatric day treatment program for up to 55 elderly participants.

For more information about the SCA, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at http://www.dol.gov/whd.