Construction workers on New York Police Department building projects will receive a $900,000 settlement to cover unpaid wages.
In a recent development, the city Comptroller Brad Lander's office has announced a settlement worth approximately $900,000 between 22 workers and CLS Project Solutions, the prime contractor on the police precincts work. The settlement was reached after investigations into claims of wage theft, a practice that has been prevalent among contractors and subcontractors, according to Hildalyn Colon, the chief operations and strategic officer at New Immigrant Community Empowerment.
The underpayments occurred over a two-year period from October 2018 to November 2020. Under the city's prevailing wage structure, the workers were entitled to $38.40 an hour, plus benefits equating to another $31.04 an hour, for a combined total of $69.44 an hour. However, some of the workers were initially paid the minimum wage of $15 an hour. One employee who worked on the police precinct renovations received $187,000 in back wages, and another worker received $110,000, according to the comptroller's office.
The settlement includes a $92,000 civil penalty, $645,000 for underpayments, and $118,000 in interest payments. In addition to the civil penalty, the general contractor was assessed a "finding of willfulness." Two such findings or designations within a six-year period can result in the contractor being barred from doing business with the city.
Colon also mentioned that these companies often exploit the fact that immigrants may not be aware that working in certain facilities could entitle them to more money. The shortchanged workers were mostly Spanish-speaking immigrants. Lander stated that companies found to have engaged in wage theft are often aware of wage guidelines but choose to ignore them.
The settlement brings the total sum of settlements brokered by the comptroller's office on behalf of unpaid workers since 2022 to $15 million. Lander's office directed workers to the comptroller's website to know what their rights are or to file a wage complaint.
It is important to note that this is not the first time the city Comptroller's office has taken action against wage theft. In August, a previous settlement of $3 million was announced for workers who cleaned and disinfected subway cars during the pandemic.
As the city continues to investigate claims of wage theft, workers are encouraged to be aware of their rights and to report any instances of underpayment. The city Comptroller's office remains committed to ensuring fair wages for all workers.
