NYC Comptroller Secures $57K+ in Back-Wages & Benefits from MSA Security for Prevailing Wage Violations

New York, NY — The New York City Comptroller’s Office reached a settlement with Michael Stapleton Associates, Ltd. (MSA Security) for prevailing wage violations related to a contract with New York City Department of Citywide Administrative Services (DCAS) for armed security guards on the Staten Island Ferry. The settlement payments total $57,010.80, including back-wages, interest, and a civil penalty.

“Companies cannot expect to use loopholes to avoid paying workers, who in this case were contracted to keep our public transportation safe, from the benefits rightfully owed to them. This settlement returns the value of those benefits to the security guards who patrol the ferry,” said Comptroller Brad Lander.

“Failure to pay the workers the required benefits in this case is a violation of prevailing wage law and undermines workers’ rights. The Comptroller’s Office remains committed to ensuring that these workers receive the compensation they rightfully deserve,” said Claudia Henriquez, Director of Workers’ Rights at the Comptroller’s Bureau of Labor Law.

Under New York State law, the New York City Comptroller sets and enforces prevailing wage laws for building services, which includes security guards. Section 230 of New York State Labor Law sets forth how prevailing wages should be determined for building service employees.

Prevailing wage law requires covered contractors to pay their employees a specified rate of pay, which is set by the Comptroller, and supplemental benefits such as health insurance and pension contributions. In lieu of providing the benefit, a company may meet their obligations by paying workers the supplemental benefit rate, a fixed hourly dollar amount also set by the Comptroller.

In this case, MSA Security did not pay the supplemental benefits to the workers, as required by law. Over the two-year period between November 1, 2016 and December 31, 2018, and December 2019, the 33 workers covered by the investigation collectively missed out on $38,050.33 in supplemental benefits. After factoring in additional penalties and interest, MSA Security paid a total settlement of $57,010.80.

This matter was handled by Investigator Cordie McCann, supervised by of Director of Investigations Francisco Gonzalez and with the support of Emily Chang, Agency Attorney and Amy Luo, Supervising Attorney. The audit of the underpayment was performed by Auditor Eugene Chun, supervised by Director of Audit Stuart Rimmer. The Bureau of Labor Law is overseen by Claudia Henriquez, Director of Workers’ Rights.

If you have worked on a prevailing wage project and believe your employer has violated the law, you can file a complaint with the Comptroller’s Office here.

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