{"id":113791,"date":"2017-02-13T12:00:37","date_gmt":"2017-02-13T17:00:37","guid":{"rendered":"http:\/\/comptroller.nyc.gov\/?p=113791"},"modified":"2017-02-13T13:50:16","modified_gmt":"2017-02-13T18:50:16","slug":"comptroller-stringer-debars-contractor-that-cheated-immigrant-workers-out-of-1-7-million-in-prevailing-wages-and-benefits","status":"publish","type":"post","link":"https:\/\/comptroller.nyc.gov\/newsroom\/comptroller-stringer-debars-contractor-that-cheated-immigrant-workers-out-of-1-7-million-in-prevailing-wages-and-benefits\/","title":{"rendered":"Comptroller Stringer Debars Contractor that Cheated Immigrant Workers out of $1.7 million in Prevailing Wages and Benefits"},"content":{"rendered":"<p><div class=\"ratio ratio-16x9\"><iframe loading=\"lazy\" class=\"embed-responsive-item\" src=\"https:\/\/www.youtube.com\/embed\/8BHsUgTcnrk\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div><\/p>\n<p><strong>(New York, NY)<\/strong>\u00a0\u2013\u00a0New York City Comptroller Scott M. Stringer today assessed $3.2 million in fines against K.S. Contracting Corporation and its owner, Paresh Shah, for cheating dozens of workers out of the prevailing wages and benefits they were owed under the New York State Labor Law. In addition to being assessed $3.2 million in unpaid wages, interest, and civil penalties, K.S Contracting and Mr. Shah will be barred from working on New York City and State contracts for five years. \u00a0K.S. Contracting was named as one of the worst wage theft violators in New York in a report by the Center for Popular Democracy in 2015.<\/p>\n<p>\u201cWith President Trump taking clear aim at immigrants across the country, we need to stand up and protect the foreign-born New Yorkers who keep our City running. Every New Yorker has rights, and my office won\u2019t back down in defending them,\u201d <strong>New York City Comptroller Scott M. Stringer<\/strong> said. \u201cContractors might think they can take advantage of immigrants, but today we\u2019re sending a strong message: my office will fight for every worker in New York City. This is about basic fairness and accountability.\u201d<\/p>\n<p>K.S. Contracting was awarded more than $21 million in contracts by the City Departments of Design and Construction, Parks and Recreation, and Sanitation between 2007 and 2010. Projects included the Morrisania Health Center in the Bronx, the 122 Community Center in Manhattan, the Barbara S. Kleinman Men\u2019s Residence in Brooklyn, the North Infirmary Command Building on Rikers Island, Bronx River Park, the District 15 Sanitation Garage in Brooklyn, and various City sidewalks in Queens.<\/p>\n<p>The Comptroller\u2019s Office began investigating the company after an employee filed a complaint with the office in May 2010. The multi-year investigation used subpoenas, video evidence, union records, and City agency data to uncover a kickback scheme that preyed on immigrant workers.<\/p>\n<p>After a four-day administrative trial in May 2016, the Comptroller found that K.S. Contracting routinely issued paychecks to just half of its workforce and then required those employees to cash the checks and surrender the money to company supervisors.\u00a0The Comptroller further found that those supervisors would then redistribute the cash to all of the employees on a jobsite, paying them at rates significantly below prevailing wages, and that K.S. Contracting falsely reported to the City agencies that all employees on the jobsite who received checks were paid the prevailing wage.<\/p>\n<p>Between August 2008 and November 2011, the company cheated at least 36 workers out of $1.7 million in wages and benefits on seven New York City public works projects. K.S. Contracting reported that it paid its workers combined wage and benefit rates starting at $50 per hour but actually paid daily cash salaries starting at $90 per day.\u00a0 The majority of the workers impacted were immigrants of Latino, South Asian, or West Indian descent.<\/p>\n<p><strong><em><u>Examples of Paysheets Used by K.S. Contracting<\/u><\/em><\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"541\" class=\"aligncenter size-large wp-image-113799\" src=\"http:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment1-700x541.png\" alt=\"\" srcset=\"https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment1-700x541.png 700w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment1-250x193.png 250w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment1-768x593.png 768w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment1-120x93.png 120w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment1.png 1650w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"541\" class=\"aligncenter size-large wp-image-113803\" src=\"http:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment2-700x541.png\" alt=\"\" srcset=\"https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment2-700x541.png 700w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment2-250x193.png 250w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment2-768x593.png 768w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment2-120x93.png 120w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment2.png 1650w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"700\" height=\"541\" class=\"aligncenter size-large wp-image-113805\" src=\"http:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment3-700x541.png\" alt=\"\" srcset=\"https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment3-700x541.png 700w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment3-250x193.png 250w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment3-768x593.png 768w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment3-120x93.png 120w, https:\/\/comptroller.nyc.gov\/wp-content\/uploads\/2017\/02\/kennys-payment3.png 1650w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<p>The New York City Comptroller\u2019s office enforces state and local laws which require private contractors working on New York City public works projects or those with service contracts with City agencies to pay no less than the prevailing wage or living wage rate to their employees.<\/p>\n<p>When workers are underpaid, the New York City Comptroller\u2019s office works to recoup the amount of the underpayment plus interest.<\/p>\n<p>Since taking office in 2014, Comptroller Scott M. Stringer\u2019s Bureau of Labor Law has assessed over $20 million and barred 40 contractors from state and City contracts due to prevailing wage violations, both record amounts. The assessed violation number includes underpayment of wages and benefits with interest payable to workers, and civil penalties payable to the City treasury.<\/p>\n<p>\u201cWe applaud the Comptroller for standing up for the rights of immigrant workers and debarring bad actors like K.S. Contracting \u2013 a company identified by the Center for Popular Democracy as one of the worst violators of wage theft laws in New York.\u00a0 The Comptroller\u2019s aggressive enforcement of prevailing wage law is a perfect example of what is needed to effectively combat wage theft throughout the city and state,\u201d said <strong>Kate Hamaji,<\/strong> <strong>Center for Popular Democracy.<\/strong><\/p>\n<p>&#8220;We commend Comptroller Stringer for defending the rights of immigrant workers and ensure that they receive the wages and benefits that they deserve,&#8221; said<strong> Steven Choi, executive director of the New York Immigration Coalition<\/strong>. &#8220;In a time when immigrant communities are worried for their future in this country, it is essential that we have strong city advocates who will ensure that their rights are protected.&#8221;<\/p>\n<p>&#8220;At a time when exploitative employers are feeling increasingly emboldened by Trump\u2019s hateful rhetoric, it is imperative that our City&#8217;s leaders are taking a strong stance in defense of immigrant workers. Wage theft is a\u00a0persistent\u00a0and pervasive problem in New York, with employers like Paresh Shah cheating their immigrant workers out of millions of dollars in lawful wages and benefits each year. \u00a0We commend the Comptroller for fighting to recuperate wages for the workers at KS Contracting and for showing employers like Paresh Shah that their behavior will not be tolerated by the City of New York,\u201d said <strong>Deborah Axt, Executive Director, Make the Road New York.<\/strong><\/p>\n<p>\u201cI want to thank New York City Comptroller Scott Stringer for taking the lead in fighting wage theft.\u00a0 Unfortunately wage theft is a crime that is running rampart throughout the construction industry.\u00a0 Hard working men and women, who expect nothing more than a fair day\u2019s pay for a fair\u2019s day\u2019s work are constantly seeing their hard earned wages stolen by dishonest, criminal employers.\u00a0 By debarring KS Contracting for five years, Comptroller Stringer and his office have sent a message loud and clear \u2013 stealing workers\u2019 wages will not be tolerated in New York.\u201d\u00a0said <strong>Robert Bonanza, Business Manager, Mason Tenders District Council of Greater New York, LiUNA!.<\/strong><\/p>\n<p>\u201cI would like to thank Comptroller Stringer and his team in the Bureau of Labor Law for bringing justice to the workers at K.S. Contracting. Unfortunately the Comptroller\u2019s task is made more difficult by the fact that many City agencies do not put top priority on monitoring projects for labor violations.\u00a0 Too many employers in New York City exploit minority and immigrant workers. \u00a0And it\u2019s no secret that many immigrant workers are fearful of retaliation for standing up for their rights, especially in an environment where they are afraid of being deported.\u00a0 \u00a0This undercuts labor standards for all workers, and safe, educated workers are our City\u2019s most valuable resource.\u00a0 We need more responsible and proactive leaders like Comptroller Stringer to protect that resource,\u201d said\u00a0<strong>Lowell Barton, Vice President\/Organizing Director, Laborers Local 1010, LiUNA!.<\/strong><\/p>\n<p>\u201cIn a city where diversity is our greatest strength, \u00a0we will not let anyone target our immigrant workers for abuse.\u00a0 Undermining labor standards for immigrants it&#8217;s an attack on all workers. \u00a0I commend Comptroller Stringer for standing up for immigrant workers and against wage theft at a time when our immigrant communities are under attack,\u201d said <strong>Renata Pumarol, Communications Director, New York Communities for Change.<\/strong><\/p>\n<p>\u201cWe at the Alliance of South Asian American Labor (ASAAL) are extremely conscious of the rights of every human being who lives in this great nation no matter what their immigration status. Many hard working individuals are taken advantage of by unscrupulous employers. We greatly applaud Comptroller Scott Stringer\u2019s aggressive approach to combat wage theft violations and in this way protect the rights of all workers. I applaud his historic record of debarring 40 contractors since taking office and assessing over $20 million in prevailing wage violations, including today&#8217;s order against K.S. Contracting,&#8221; said <strong>Maf Misbah Uddin, ASAAL National President.<\/strong><\/p>\n<p>To read more about how the Comptroller\u2019s Office sets and enforces prevailing wage and benefit rates on New York City public works projects, please click\u00a0<a href=\"\/services\/for-the-public\/prevailing-wage\/unclaimed-prevailing-wage\/\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"(New York, NY)\u00a0\u2013\u00a0New York City Comptroller Scott M. Stringer today assessed $3.2 million in fines against K.S. Contracting Corporation and its owner, Paresh Shah, for cheating dozens of workers out of the prevailing wages and benefits they were owed under the New York State Labor Law. In addition to being assessed $3.2 million in unpaid&#8230; <a href=\"https:\/\/comptroller.nyc.gov\/newsroom\/comptroller-stringer-debars-contractor-that-cheated-immigrant-workers-out-of-1-7-million-in-prevailing-wages-and-benefits\/\"><strong>Read More<\/strong><\/a>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,190],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/posts\/113791"}],"collection":[{"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/comments?post=113791"}],"version-history":[{"count":9,"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/posts\/113791\/revisions"}],"predecessor-version":[{"id":113837,"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/posts\/113791\/revisions\/113837"}],"wp:attachment":[{"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/media?parent=113791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/categories?post=113791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/comptroller.nyc.gov\/wp-json\/wp\/v2\/tags?post=113791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}