Victory for Workers: Comptroller Lander Reports More Than $9 Million in Recovered Back Wages
New York, NY—Since the start of New York City Comptroller Brad Lander’s term in 2022, his Office settled $9.1 million for workers to whom companies owe back wages, civil penalties, and interest. Just this month, the Office reached settlements with 781 Metropolitan Ave JV LLC, Champion Electrical Mechanical Builder Group Corp., D’onofrio General Contractors Corp., and Rennon Construction Corp. for prevailing wage violations totaling $525,152.20—including back wages, civil penalties, and interest—for work contracted between 2016-2021. These settlements bring the total recovered by the Bureau of Labor Law since the start of Comptroller Lander’s tenure to $9,100,254.50
“I am extremely grateful for the work that our Bureau of Labor Law does to recover every dollar owed to workers on prevailing wage projects,” said Comptroller Brad Lander. “At a time when the federal government is gutting civil service, hollowing out labor protections, and turning its back on workers, recovering $9 million in wages and penalties is resounding proof of our office’s steadfast commitment to fighting on workers’ behalf.”
“The Bureau of Labor Law prides itself on fighting for every last dollar owed, and our hard work is reflected in each case we settle and each milestone we hit,” said Claudia Henriquez, Director of Workers’ Rights at the Comptroller’s Bureau of Labor Law. ”Reaching $9 million in wages and penalties recovered in just over three years is an accomplishment, but the news coming out of Washington means that local enforcement of labor protections is more critical than ever.”
781 Metropolitan Ave JV LLC
The New York City Comptroller’s Office reached a settlement with 781 Metropolitan Ave JV LLC for 421-a for failure to pay prevailing wages to two building services workers. The settlement totals $90,000.00, including interest and civil penalties.
The Bureau of Labor Law investigated the owner of 781 Metropolitan Avenue in Brooklyn. With 80 residential units, the building received a 25-year 421-a tax exemption when it entered into an agreement with Security USA, Inc., to provide maintenance and concierge services. The Bureau’s investigation found that Security USA failed to pay prevailing wage and supplemental benefits to two workers that provided services at the building from July 2019 through January 2021.
Champion Electrical Mechanical Builder Group Corp.
The New York City Comptroller’s Office reached a settlement with Champion Electrical Mechanical Builder Group Corp. (Champion Electrical) for failure to pay prevailing wages to six workers on public work construction projects and for falsifying payroll records. The settlement totals $295,901.08, including interest and civil penalties, and the contractor agreed to a debarment.
New York City Department of Parks and Recreation (NYC Parks) contracted Champion Electrical to repair sidewalks in Brooklyn, Queens, and Staten Island. The Bureau of Labor Law launched its investigations following complaints from workers and a referral from NYC Parks. In its investigation, the Bureau found that Champion Electrical falsified payroll records during the audit period of March 2016 through November 2016. Falsification of records is sufficient grounds for a debarment under the New York Labor Law. The debarment prevents Champion Electrical from submitting a bid, or being awarded, any public work contract, or subcontract, in New York for a period of five years.
D’onofrio General Contractors Corp. and Yukon Enterprises, Inc.
The New York City Comptroller’s Office reached a settlement with D’onofrio General Contractors Corp. (D’onofrio) for prevailing wage violations from two workers performing street paving work. The settlement payment totals $132,163.40, including interest and civil penalty.
Con Edison contracted with D’onofrio to perform excavation and paving work at various locations throughout New York City between October 2018 and February 2019, and D’onofrio subcontracted Yukon Enterprises Inc. Two workers employed to do paving work on public street sites pursuant to the Department of Transportation permits were part of the crew and therefore required to be paid prevailing wage. The Bureau of Labor Law’s investigation determined that D’onofrio and Yukon Enterprises, Inc., failed to pay prevailing wage to the two workers.
Rennon Construction Corp.
The New York City Comptroller’s Office reached a settlement with Rennon Construction Corp. (Rennon) for failure to pay prevailing wages to eight workers on public work projects. The settlement payment totals $7,087.72, including interest and civil penalties.
Rennon was subcontracted by Superstructures Engineering & Architecture, PLLC, which the New York City Department of Citywide Administrative Services (DCAS) contracted to perform façade inspections at all DCAS Asset Management buildings. Rennon’s subcontract was for the performance of localized masonry work on 70 Mulberry Street in Manhattan. The Bureau of Labor Law’s investigation determined that Rennon failed to pay prevailing wages to eight workers who performed work from May through July 2021.
“Far too often, unscrupulous and greedy private employers take advantage of their workers by withholding wages, overtime, and benefits, but it has become clear that increased efforts from the Comptroller Office have helped ensure that more New Yorkers are paid what they’re owed,” said Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York. “Honest work should result in honest pay and accountability for these unlawful practices is imperative.”
“We congratulate New York City Comptroller Brad Lander for winning over $9 million in prevailing wage settlements for workers. The Comptroller’s prevailing wage enforcement efforts have ensured employers benefitting from taxpayer dollars – whether through City contracts or other public subsidies – actually live up to their obligations and pay the essential workers on whom our City depends the wages and benefits they are due,” said Manny Pastreich, President of 32BJ SEIU.
“At this unsettling time, it is critical for state and local governments to stand up to protect workers’ rights,” said Terri Gerstein, Director of the NYU Wagner Labor Initiative. “These settlements put money in the pockets of hard-working New Yorkers, and the five-year debarment of one contractor should serve as a warning that deters other businesses from violating the law. These results by New York City Comptroller Brad Lander and his Bureau of Labor Law and worker protection team provide a concrete example of how local leaders can take action to fight wage theft, create a level playing field for law-abiding companies, and protect working people.”
Under the New York Labor Law, the New York City Comptroller sets and enforces prevailing wage and living wage laws for public works projects and certain service contracts in the City of New York.
Agency attorney Jamshid Saloor, investigator Cordie McCann, and auditor Xiaoyue Lin handled the matter of 781 Metropolitan Ave JV LLC. Agency attorney Jamshid Saloor, investigators Jose Quiroz and Dwayne Gibson, and auditor Ilona Stadnicka the matter of Champion Electrical Mechanical Builder Group Corp. Attorney Amy Luo, investigator Richard Abbadessa, and auditor Xiaoyue Lin handled the matter of D’onofrio General Contractors Corp. and Yukon Enterprises, Inc.
Agency attorney Kristyn Sanito, investigator Dwayne Gibson, and auditor Ilona Stadnicka handled the matter of Rennon Construction Corp. Amy Luo, Supervising Attorney; Jose Quiroz, Deputy Director of Investigations; Francisco Gonzalez, Director of Investigations; and Stuart Rimmer, Director of Audit supervised all matters. Claudia Henriquez, Director of Workers’ Rights oversees the Bureau of Labor Law.
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