Comptroller Lander Sues MTA Contractors for Wage Theft After Stiffing COVID-19 Pandemic Heroes Out of Over $2.5 Million
New York, NY — The New York City Comptroller’s Bureau of Labor Law filed lawsuits against Fleetwash, Inc (Fleetwash) and Ln Pro Services, LLC (Ln Pro) for willfully failing to pay prevailing wages and supplements to their employees for the cleaning and disinfecting of subway cars at terminal stations during the pandemic. The lawsuits, filed at the New York City Office of Administrative Trials and Hearings, allege that Fleetwash and Ln Pro owe $876,923.44 and $1,753,768.54, respectively, in back wages and penalties.
“During the tough days of the pandemic, the essential workers who cleaned our subways were the unsung heroes keeping New York City safe,” said Comptroller Brad Lander. “Sadly, many of these workers were cheated out of the prevailing wage they earned, all while facing terrifying conditions. This lawsuit brings these workers closer to justice and underscores the urgent need for accountability. While the legal process still has to play out, we are confident that we are on the right side of the law.”
“Essential workers deserve respect and pay that represents the value they are providing to the City. These lawsuits signal that New York City will not tolerate short-changing the workers whose hard work made our subways safer during the height of the pandemic. We will make sure that these workers receive the pay to which they are entitled,” said Claudia Henriquez, Director of Workers’ Rights at the Comptroller’s Bureau of Labor Law.
Under the New York Labor Law, the New York City Comptroller sets and enforces prevailing wage laws for public works projects and City-owned properties in the City of New York. The New York Labor Law requires that prevailing wages and supplemental benefits be paid to building service employees on public contracts, including workers providing cleaning services.
The New York City Transit Authority (NYCT), a subsidiary of the MTA, oversees train and bus services in New York City. Pre- and post- COVID NYCT contracts explicitly mandated prevailing wages for cleaners in the removal of trash and maintenance of cleanliness at subway stations, though the requirement to pay prevailing wage rates was not included in the COVID contracts for the cleaning and disinfecting of train cars at terminal stations. In May 2020, then-Comptroller Scott Stringer sent a letter to the Chairman of the Metropolitan Transit Authority (MTA), informing the agency of the Comptroller’s determination that prevailing wages applied to the emergency cleaning and disinfecting of both subway stations and trains that was being performed in response to the COVID-19 pandemic.
This determination has been upheld and enforced by current Comptroller Brad Lander.
Despite the notification through the Comptroller’s 2020 Letter, Fleetwash and Ln Pro, following guidance from the NYCT, refused to pay prevailing wages for the cleaning of the subway cars.
The violations at Fleetwash occurred from May 2020 through April 2021 at the L 8th Avenue/14th Street terminal. These violations have adversely affected 139 workers, leading the NYC Comptroller to seek redress in the amount of $876,923.44, comprising $511,834.98 in underpayment, $175,384.69 in civil penalties, and $189,703.77 in interest at a rate of 16%.
At Ln Pro, the violations took place from May 2020 through February 2021 at the 2/5 Flatbush Avenue terminal and the F 179th Street terminal. $1,753,768.54, accounting for $972,351.20 underpayment, $350,753.71 in civil penalties, and $430,663.63 in interest at a rate of 16%.
These lawsuits are being handled by Agency Attorney Emily Chang, under the supervision of Supervising Attorney Amy Luo, in collaboration with Investigators Cordie McCann and Rudolpho Donawa and Auditors Ilona Stadnicka and Xiaoyue Lin. The Bureau of Labor Law is overseen by Claudia Henriquez, Director of Workers’ Rights.
“We applaud Comptroller Lander for taking decisive action to protect vulnerable low-income New Yorkers who served as essential workers during the height of COVID to keep subway riders safe from transmission,” said Maggie Malloy, supervising attorney with The Legal Aid Society’s Employment Law Unit. “The litigation brought today both holds bad actors accountable for their misdeeds and puts other employers on notice that wage theft will not be tolerated in New York City.”
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