What you should know
- New York City has recovered $ 3 million over two years of unpaid wages and benefits from construction services workers in two rental properties located in Queens and Brooklyn.
- At the time, the prevailing salary plus benefits ranged, depending on seniority and title, from about $ 22 to $ 26. The company paid the cleaners and cleaners in one of the properties for only $ 9 to $ 14 an hour without subsidies, and workers at the other location only $ 8.50 to $ 15, even without subsidies.
- As a result of the deal, Heatherwood will return $ 723,324.33, which includes 16 percent interest, to 24 workers and pay the city $ 1,146,196 and the state $ 686,527 in penalties.
NEW YORK – New York City has recovered $ 3 million over two years of unpaid wages and benefits from construction services workers in two rental properties located in Queens and Brooklyn, New York Attorney General Letitia James and New York City Controller Brad Lander.
Heatherwood Communities LLC (Heatherwood) received tax exemptions on two of its rental properties in New York City under the city’s 421-a program, but did not pay prevailing salaries and benefits to construction services employees as required. from the program’s tax credit, the report said.
As a result of the agreement, Heatherwood will return $ 723,324, the full amount owed plus interest, to 24 workers and pay a fine to New York City and New York State for violating the terms of the tax credit program.
“Workers are the backbone of New York and deserve fair pay and benefits for their hard work,” said Attorney General James. “These people worked day and night to make ends meet, but they were denied hard-earned money. Paying fair wages and benefits to workers is not a luxury, it is the law, and Heatherwood deceived these workers and taxpayers. Today, two dozen workers will receive back their wages earned but unfairly denied. I thank Controller Lander and 32BJ SEIU for their collaboration in this effort to hold bad actors accountable and protect everyday New Yorkers. “
An investigation by the attorney general’s office found that over the course of two years Heatherwood failed to pay the prevailing wages and benefits of construction services workers in one building in Queens and another in Brooklyn.
The buildings, 27 out of 27 in Long Island City and 568 Union in Williamsburg, have yoga areas, furnished rooftop terraces, fitness centers, children’s playrooms, and even a movie theater, all in one building.
Heatherwood has applied for partial tax relief under the New York 421-a tax incentive program administered by the New York City Department of Housing Conservation and Development (HPD). Under the 421-a tax credit program, developers receive tax breaks, under certain conditions, on new multi-unit residential buildings.
To qualify, any project that receives tax exemption must be subject to local rental stabilization laws and, for buildings with at least 30 units, developers must set aside a certain number of affordable housing units or pay wages prevalent to construction service workers. Developers must adhere to prevailing wage standards, which determine the wages and benefits payable to construction services workers under the programs issued by the New York City Comptroller.
As part of her claims for tax breaks, Heatherwood told HPD she would pay prevailing wages to construction services employees. At the time, the prevailing salary plus benefits ranged, depending on seniority and title, from about $ 22 to $ 26. Heatherwood paid cleaners and cleaners at 568 Union Avenue for only $ 9 to $. 14 an hour without subsidies, and workers on 27-03 42nd Road only $ 8.50 to $ 15, even without subsidies.
These amounts were about 41 percent of what the workers were supposed to receive.
As a result of the deal, Heatherwood will return $ 723,324.33, which includes 16 percent interest, to 24 workers and pay the city $ 1,146,196 and the state $ 686,527 in penalties. Heatherwood must also continue to pay construction services employees the prevailing wages.
The Controller will notify the workers of this agreement and issue their checks.
This case was initiated under the New York False Claims Act (NYFCA), by a whistleblower who is suing on behalf of the State of New York. As the whistleblower who alerted the MPC to this situation, 32JB SEIU will receive a percentage of the proceeds paid as part of the transaction.
