NYC Comptroller Sues Building Services Contractor for 421-a Prevailing Wage Violations at Two Apartment Complexes

New York, NY — The New York City Comptroller’s Bureau of Labor Law filed lawsuits against Planned Lifestyle Services and Planned Building Services — divisions of Planned Companies — for failure to pay prevailing wage and supplemental benefits to building service employees at two buildings receiving tax benefits under Real Property Tax Law § 421-a. The proceedings, filed at the New York City Office of Administrative Trials and Hearings, allege that the companies owe a total of $145,331.81 in back wages, interest, and civil penalties.

“This isn’t our first investigation against Planned Companies, and we cannot stand by while workers continue to be cheated out of their hard-earned wages. This is about ensuring fairness and accountability for all employees employed by Planned,” said Claudia Henriquez, Director of Workers’ Rights at the Comptroller’s Bureau of Labor Law.

Sam Spilkes LLC (Sam Spilkes)­­­, owner of a residential building at 282 S. 5th Street in Williamsburg, Brooklyn with over 80 units, and CREF 546 West 44th Street LLC (CREF), owner of a residential building at 546 W 44th Street in Manhattan with 280 units, both hired Planned Companies to provide services such as cleaners, doorpersons, and security guards at their respective buildings.

Based on complaints filed by employees at both buildings, the Bureau of Labor Law conducted two investigations that found that Planned Companies’ workers missed out on over $140,000 in pay. Both the building owners and Planned Companies are liable.

The investigation at Sam Spilkes’ building in Williamsburg, Brooklyn found that Planned Companies failed to pay prevailing wage and supplemental benefits to employees between December 2018 through June 2020. The back wages and penalties sought for work performed at the Williamsburg building total $72.697.83.

This was not the first investigation into Planned companies and Sam Spilkes. Back in January 2020, the Comptroller’s Office found that Planned Companies did not pay prevailing wages as required by law at the same Williamsburg building owned by Sam Spilkes. Sam Spilkes was jointly and severally liable for any wage underpayment.  As a result Sam Spilkes agreed to pay over $450,000 in lost wages to the building service employees.

The investigation at 546 W 44th Street also found that Planned Companies failed to pay prevailing wage and supplemental benefits between March 2019 and February 2021. The back wages and penalties sought for employees performing work at this location total $72,633.98.

The Bureau of Labor Law’s proceedings are being handled by Agency Attorney Jamshid Saloor and overseen by Supervising Attorney Amy Luo. The investigations were conducted by Investigator Rudolpho Donawa under the supervision of Jose Quiroz, Deputy Director of Investigations and Francisco Gonzalez, Director of Investigations. The audits were performed by Xiaoyue Lin and Ilona Stadnicka under the supervision of Director of Audit Stuart Rimmer. The Bureau of Labor Law is overseen by Claudia Henriquez, Director of Workers’ Rights

“Building service workers have fought too hard to win and defend local labor standards to allow companies like Planned who flagrantly violate the law and steal wages from essential workers. We thank Comptroller Brad Lander for his diligence in defending the critical prevailing wage standards for the hard working New Yorkers who make these buildings run. These workers must be made whole,” said 32BJ SEIU President Manny Pastreich.

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