Comptroller Recovers Over $9 Million in Unpaid Wages for Workers
The city comptroller’s office has secured several settlements with construction firms and a Brooklyn apartment developer, resulting in the recovery of over $525,000 in back pay, interest, and civil penalties for underpaid workers. This amount is part of a larger total of more than $9 million in unpaid wages recovered by the comptroller’s labor law bureau in the past three years.
Background on the Settlements
The settlements involve four different cases, including three construction firms subcontracted by city agencies and Con Edison, and a Brooklyn apartment developer. The firms failed to pay workers their full required wages, prompting investigations by the comptroller’s labor law bureau. The bureau pursued the cases, resulting in agreements that require the firms to pay back wages, interest, and civil penalties.
Details of the Settlements
One of the cases dates back to 2016 and involves a Department of Parks and Recreation contractor, Champion Electrical Mechanical Builder Group Corp. The company failed to pay the prevailing wage to six workers and falsified payroll records. As a result, Champion Electrical Mechanical Builder Group Corp. has agreed to pay $295,900 in back wages and civil penalties and is banned from working on city government projects for five years.
Prevailing Wages and Benefits
Prevailing wages and benefits are rates that employers must pay workers on publicly funded construction and building service projects. These rates are set and enforced by the city comptroller. Workers on public works projects often are not aware that they may be entitled to higher pay under prevailing wage standards, making it easy for employers to deprive them of pay and benefits they are owed by law.
Importance of the Settlements
According to Claudia Henríquez, the director of workers’ rights at the comptroller’s labor law bureau, the settlements are crucial for ensuring the integrity of the city’s contracts and protecting workers’ rights. "We think it’s very important for the integrity of the city and the city’s contracts that these contractors are following the law," said Henríquez. "And for workers to know that they are entitled to these wages, they are entitled to good jobs, and we want to make sure that they’re getting paid what they deserve."
Impact on Workers
One worker, who asked to remain anonymous, learned he was being underpaid when a union organizer visited his construction site in February 2019. The worker was employed by D’Onofrio General Contractors Corp., a Con Edison contractor, and was earning $23 an hour, despite the prevailing wage standard being $46 an hour. After meeting with the organizer, the worker was fired and struggled to find work for months to support his pregnant wife.
Response from the Comptroller’s Office
Comptroller Brad Lander speaks at a City Hall rally, Feb. 6, 2025. Credit: Ben Fractenberg/THE CITY Comptroller Brad Lander praised the work of the labor law bureau, stating, "I am extremely grateful for the work that our Bureau of Labor Law does to recover every dollar owed to workers contracted by New York City… recovering $9 million in owed wages is resounding proof of our office’s steadfast commitment to fighting on workers’ behalf."
Conclusion
The settlements secured by the comptroller’s office demonstrate the importance of enforcing prevailing wage standards and protecting workers’ rights. The recovery of over $9 million in unpaid wages is a significant achievement, and the office will continue to work to ensure that workers receive the pay and benefits they are entitled to.
FAQs
- Q: What is the prevailing wage standard?
A: The prevailing wage standard is the rate that employers must pay workers on publicly funded construction and building service projects, set and enforced by the city comptroller. - Q: How much has the comptroller’s labor law bureau recovered in unpaid wages?
A: The comptroller’s labor law bureau has recovered over $9 million in unpaid wages in the past three years. - Q: What happens to employers who fail to pay prevailing wages?
A: Employers who fail to pay prevailing wages may be required to pay back wages, interest, and civil penalties, and may be banned from working on city government projects. - Q: How can workers report underpayment?
A: Workers can report underpayment to the comptroller’s labor law bureau or seek assistance from a union organizer or other advocacy group.
