Municipal Government

NYC Comptroller Reaches $1.3 Million Prevailing Wage Settlement

July 23, 2014
By Stephanie West

New York, NY – AlliedBarton Security Services, LLC has agreed to pay over $1.3 million in wages and interest that were due to 143 armed security workers for the company’s failure to pay prevailing wages. The agreement was brokered by the Office of the New York City Comptroller’s Bureau of Labor Law.

“Nearly 150 security guards across the City were getting paid at different rates and losing out on crucial benefits because AlliedBarton wasn’t following existing prevailing wage laws,” Comptroller Stringer said. “These men and women deserve their rightful pay for protecting New York City Transit (NYCT) employees at their place of work.”

Prompted by employee inquiries, the Comptroller’s Bureau of Labor Law investigated underpayments to employees during the period of October 2010 through March 2013.  Prevailing wage rates had increased from just over $27 an hour in wages and benefits on the 2009 prevailing wage schedule to about $32.50 by 2012.
AlliedBarton initially used the correct prevailing wage rate schedule set by the Comptroller’s office in the first year of its multi-year contract with NYCT. The company, however, continued to pay the same wages and benefits relying upon an old policy of the New York State Department of Labor. The Comptroller’s policy requires rates on existing contracts to match the most up-to-date wage schedule.

Since January, Comptroller Stringer has assessed over $4 million in prevailing wage violations, including over $250,000 in penalties payable to the City treasury.

July 22, 2014

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