A USAID contractor, RTI International, is now embroiled in legal action after refusing to properly compensate employees whose contracts were terminated following the end of USAID projects in Liberia.
The company, which operated two key USAID-funded initiatives in the country, faces accusations of violating Liberian labor laws by withholding employee benefits and engaging in retaliatory actions against staff who have challenged its decisions.
Since the Trump administration took office, USAID has canceled numerous projects worldwide, including several in Liberia, as part of its broader efforts to downsize the agency, which it accuses of wastefulness and promoting liberal agendas.
Liberia, a critical partner for U.S. development assistance, has seen dozens of USAID-backed projects shut down, including RTI International’s Food Security Nutrition and Resilience (FSNR) and Transforming the Education System for Teachers and Students (TESTS) activities. Both projects were abruptly terminated under the Trump administration’s global funding cuts.
According to Liberian labor regulations, fixed-term employees are entitled to receive compensation for benefits owed until the contract’s completion.
Two employees, who have asked to remain anonymous for fear of retribution, have filed legal action against RTI International, alleging that the company has refused to pay their legally mandated benefits following the termination of their contracts.
The former employees contend that RTI International’s actions constitute a deliberate attempt to circumvent Liberian labor laws.
“Since we decided to challenge the organization, we have faced intimidation and bullying,” one of the aggrieved staff members said. “Initially, RTI withheld our March salaries, hoping to force us into submission. When we escalated the issue to the company’s senior leadership, they eventually paid us, but it was a struggle.”
In addition to withholding salaries, RTI International also denied the employees their work laptops – a move they say was retaliatory.
Despite RTI’s promise to allow all project staff to keep their laptops, the two employees who pursued legal action were specifically denied this benefit.
What makes RTI International’s refusal to comply with Liberian labor laws particularly contentious is the fact that other USAID-funded projects operating in Liberia are reportedly honoring their contractual obligations.
Employees of six other USAID projects confirmed that their employers have adhered to labor regulations and ensured that terminated staff receive appropriate benefits.
This raises questions as to why RTI International is refusing to pay benefits while continuing to donate substantial assets.
In correspondence between RTI International’s senior leaders and the two employees, the company cited “force majeure,” a legal term that typically excuses parties from fulfilling contractual obligations due to unforeseeable, unavoidable circumstances.
However, this argument has raised eyebrows, especially given the company’s actions.
RTI International has donated several assets, including four Toyota Land Cruisers worth US$35,000 each, to organizations with no legal claim to those resources.
Meanwhile, the company is resisting fulfilling its legal obligations to its former employees.
Furthermore, RTI International has submitted reimbursement requests to the U.S. government for expenses related to the project closures.
When USAID canceled the projects, it was understood that the U.S. government would be responsible for covering the lawful costs of winding down the operations.
The U.S. Supreme Court has already ruled that the government must compensate contractors for work they were obligated to carry out.
However, RTI International’s refusal to meet its commitments to its employees appears to be a deliberate attempt to avoid fulfilling its responsibilities under Liberian law.
The two employees argue that RTI’s refusal to pay not only harms their rights but also deprives the Liberian government of much-needed tax revenue.
“By not paying us what we are owed, RTI International is also preventing the Liberian government from receiving the appropriate amount in payroll and income taxes,” one of the former staff members said. “That means almost US$10,000 is being withheld from the government, which could have been used for important services in Liberia.”
As the legal battle continues, questions remain about why RTI International is resisting its obligations to workers while continuing to donate valuable assets to other organizations.
The case has raised concerns about corporate accountability and the treatment of workers, particularly in countries where development projects rely heavily on international partnerships like USAID.
