NYC Comptroller Lander Bars Charan Electrical from Public Works Contracts and Orders Company to Pay Over $200,000 for Labor Violations

New York, NY — New York City Comptroller Brad Lander signed an order against Charan Electrical Enterprise, Inc. (Charan Electrical) forcing the company to pay over $200,000 in back-wages, benefits, interest, and civil penalties and barring both the company and owner from bidding for City contracts for five years after a judge found Charan Electrical guilty of multiple labor violations.  

These violations spanned two public works projects at various public schools across New York City and included the deliberate withholding of prevailing wages and supplements. The investigation began when two workers reported facing extensive working hours with minimal or no breaks, receiving their wages exclusively in cash, and being provided with counterfeit company identifications and Occupational Safety and Health Administration (OSHA) cards. The investigation also found that Charan Electrical falsified payroll records. After a fact-finding trial, the administrative law judge concurred with the Comptroller’s Bureau of Labor Law that Charan Electrical willfully violated prevailing wage laws. 

“When our office cracks down on wage theft, the City reaffirms its commitment to worker rights and promotes a thriving, equitable work environment for all New Yorkers. This is not just a victory in the courtroom—it’s a triumph for every worker who has come forward and risked potential retaliation from their employers to advocate for the fair treatment of themselves and those around them,” said Comptroller Brad Lander. 

“We cannot allow companies to operate above the law. Our office will continue to hold those who engage in willful violations of labor laws accountable, ensuring that all workers receive the compensation they rightfully deserve for their hard work and dedication to public projects,” said Claudia Henriquez, Director of Worker Rights. 

Following a rigorous investigation, the Comptroller’s Office determined that the underpayment to the workers amounted to $103,606.60. With accrued interest, this amount increased to $160,404.58. Additionally, after receiving the maximum civil penalty, Charan Electrical Enterprises, Inc. is required to pay a total of $200,505.73.  

Charan Electrical is now ineligible to bid on or be awarded any public work contract or subcontract within the state of New York or any municipal corporation or public body within the state for five years. 

Under New York State law, the New York City Comptroller sets and enforces prevailing wage laws for public works projects, including those at public schools and building service work on New York City government-funded work sites. Section 220 of New York State Labor Law sets out how prevailing wages shall be determined. 

This matter was handled by former Bureau of Labor Law agency counsel, Caroline Friedman and Elisabeth Schiffbauer. Assistance was provided by Investigator Richard Abbadessa and Auditor Zhanna Shalomov under the supervision of Frank Gonzalez, Director of Investigations, and Stuart Rimmer, Director of Audit.   

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