I keep hearing from the right-wing (and some progressives) about how much money taxpayers would save if we contract out public services. Use the private sector as a model for public sector services they cry.
Well in the private sector, the Lyons Group just got a lesson in the real cost of contracting out:
The Lyons Group, which operates 15 well-known Boston-area eateries, has agreed to pay $424,000 in back wages and damages to 409 employees in order to resolve alleged violations of the Fair Labor Standards Act, according to the U.S. Department of Labor.
Patrick Lyons of the Lyons Group will also issue a public statement warning restaurant owners about the pitfalls of using contract labor providers who are not compliant with the Fair Labor Standards Act
So on top of paying the outside contractor the Lyons group is on the hook for $424,000 more! What a deal.