NEW YORK – New York Legal professional Basic Letitia James right now announced a $1.5 million settlement with Alba Services, Inc., its owner Andrew Horan, and a network of related New York City construction and demolition companies (collectively, Alba) for repeatedly violating state employees’ compensation legal guidelines, retaliating in opposition to injured employees, and failing to deal with sexual harassment within the office. A large-ranging investigation by the Workplace of the Legal professional Basic (OAG) uncovered illegal practices courting again practically a decade and impacting greater than 700 employees. Underneath the phrases of the settlement, Alba should pay $1.4 million in restitution to present and former Alba workers and undertake sweeping reforms to adjust to New York’s labor and human rights legal guidelines. As well as, Alba should pay $100,000 for a settlement administrator.

“For practically a decade, Alba silenced injured employees, manipulated insurance coverage prices, and allowed a tradition of harassment to fester on its worksites,” stated Legal professional Basic James. “At present, I’m proud to ship $1.4 million to employees harmed by this misconduct. We’ve got made positive that Alba can not threaten, intimidate, or exploit its workforce. My workplace won’t ever permit corporations to cheat employees out of their rights or create hostile workplaces that endanger their security and dignity.”

The OAG launched an investigation in 2022 after a referral from Development & Basic Constructing Laborers’ Native 79. Following a evaluate of greater than 60,000 pages of paperwork and dozens of witness interviews, OAG discovered that between 2016 and 2024, Alba didn’t report lots of of office accidents to the Staff’ Compensation Board (WCB) as required by regulation and explicitly instructed workers to not file eligible claims. Of the accidents Alba was legally required to report, OAG decided that the corporate reported lower than half. By preserving claims artificially low, Alba diminished its insurance coverage prices and gained an unfair benefit over opponents.

Alba retaliated in opposition to workers who sought to file claims via harassment, threats, and monetary incentives to remain silent. On at the very least two events, the corporate posted flyers publicly naming employees who had filed claims, accusing them of fraud and providing $5,000 for info resulting in their arrests. Andrew Horan would additionally ship textual content messages to his foremen unlawfully exposing the employees’ names and providing money rewards for details about them. The OAG documented at the very least 60 situations wherein Alba unlawfully disclosed employees’ names.

The investigation additional revealed that Alba would generally intrude with medical remedy by sending firm representatives to accompany injured employees to pressing care facilities or hospitals and misrepresent how and the place the harm occurred. Alba directed its employees to particular clinics it had agreements with to hide office accidents and block employees’ compensation claims. In some circumstances, the corporate steered workers with severe accidents to their most popular pressing care clinics, regardless of the worker really needing emergency room care.

As well as, OAG discovered that Alba failed to stop sexual harassment and retaliated in opposition to workers who reported misconduct. Not less than two employees described repeated harassment by a foreman who despatched inappropriate messages, made undesirable feedback on their look, and engaged in bodily contact. When the ladies rejected his advances, the foreman retaliated by assigning them to extra grueling work. The harassment created a hostile setting for the focused workers and contributed to a tradition wherein male colleagues bullied or ridiculed girls seen as related to the foreman. When one employee tried to report the harassment, her hours have been minimize till she was in the end faraway from the schedule. As a part of right now’s settlement, Alba is required to terminate the foreman’s employment and undertake complete anti-harassment insurance policies and coaching to make sure employees are protected sooner or later.

Alba’s misconduct disproportionately harmed immigrant and non-union employees, a lot of whom reported intimidation and concern of retaliation when injured. By suppressing claims and discouraging workers from searching for advantages, Alba each cheated its employees and manipulated insurance coverage premiums to chop prices.

Because of the investigation, Legal professional Basic James is requiring Alba to pay $1.4 million in restitution to the greater than 700 workers injured between 2016 and 2024. Alba pays a further $100,000 for an impartial settlement administrator. Eligible employees will be capable to file claims via the settlement administrator. The fund will present significant compensation to people who could have misplaced wages, confronted medical bills, had delayed medical remedy, been deterred from submitting a employees’ compensation declare, or endured retaliation after office accidents. Any funds not used for administration will likely be redirected to maximise funds to affected employees, making certain that each potential greenback goes to the employees Alba harmed.

Alba should additionally change its enterprise practices to finish these abuses. The corporate is required to precisely report all office accidents, cease retaliating in opposition to injured employees, and finish interference with medical remedy or claims. It should set up and implement strong sexual harassment prevention insurance policies, conduct obligatory biannual trainings in English, Spanish, and Russian, and submit to 3 years of oversight by OAG, with the choice to increase monitoring to 6 years if violations persist. Alba should additionally file biannual stories to OAG documenting compliance with employees’ compensation and human rights legal guidelines.

“Alba Companies and their household of corporations performed the system for years whereas hard-working demolition employees struggled,” stated Anthony Vita, Enterprise Supervisor, Development and Basic Constructing Laborers Native 79. “This settlement isn’t nearly Alba, it’s about non-union employees all through the Metropolis that suffer underneath comparable circumstances. This is a vital step in leveling the enjoying area for accountable contractors. We admire Legal professional Basic Letitia James’ dedication to justice for all employees and thank her crew for his or her exhausting work.”

“This settlement makes one factor clear: no employer is above the regulation. Exploiting and retaliating in opposition to employees won’t ever be tolerated in New York,” stated Brendan Griffith, President of the NYC Central Labor Council, AFL-CIO. “We commend Legal professional Basic Letitia James for her fearless dedication to justice and thank our brothers and sisters at Native 79 for bringing these abuses to mild. Almost a thousand employees have been silenced and mistreated, and right now they’re seen, heard, and vindicated. Accountability like this reminds each employer that while you hurt employees, you reply to all of us.”

“Too typically, unscrupulous contractors undermine the system and make the most of weak employees who’re merely attempting to assist their households and pursue the center class. And plenty of instances, they face little to no penalties for these transgressions,” stated Gary LaBarbera, President of the New York State Constructing Trades. “However right now represents an occasion of accountability and justice for lots of of tradesmen and tradeswomen harmed by Alba’s misconduct. We applaud Legal professional Basic James for standing up for these employees and setting a precedent that abusive enterprise practices won’t be tolerated. All hardworking New Yorkers need to pursue their careers in a dignified and protected setting that equips them to not solely make ends meet however lead fulfilling lives.”

“For years I struggled working for Alba providers, I didn’t suppose there was a spot to show,” stated a former Alba worker. “At present, Legal professional Basic James despatched a message that demolitionistas deserve justice.”

“I need to thank Legal professional Basic Letitia James for standing up for us,” stated a former Alba worker. “Not only for me however for all the employees left at Alba who now know that rights will likely be protected.”

Legal professional Basic James encourages New Yorkers who imagine they’ve been victims of labor regulation violations or office sexual harassment to contact the OAG by filing a confidential complaint online or calling (212) 416-8700.

The OAG thanks the Staff’ Compensation Board for its help within the investigation.

This case is the most recent in Legal professional Basic James’ efforts to fight exploitative labor practices. In July, Legal professional Basic James secured $148,000 for union workers denied paid sick leave, and in June, Legal professional Basic James delivered $400,000 to underpaid New York City school security guards. In Might, Legal professional Basic James secured over $660,000 for health care workers who were recruited from abroad and coerced into exploitative contracts. In March, Legal professional Basic James secured $750,000 and critical reforms to address sexual harassment and discrimination at Con Ed. In February, Legal professional Basic James secured $16.75 million from DoorDash for cheating its delivery workers out of tips, and in January, Legal professional Basic James recovered $1.1 million for Rikers Island cleaners cheated out of fair pay. In December 2024, Legal professional Basic James recovered $4 million in withheld tips for former Drizly alcohol delivery workers. In September 2024, Legal professional Basic James secured $17 million from two home health agencies for cheating its workers in a landmark wage parity agreement and returned $750,000 in stolen wages to employees of cell phone company Best Wireless. In November 2023, Legal professional Basic James recovered $328 million for Uber and Lyft drivers whose earnings were shortchanged for years.

This matter was dealt with by Assistant Attorneys Basic Donya Fernandez and Abigail Ramos, Staff’ Compensation Part Chief Alison Kent Friedman, Social Justice Coordinator Francisca Montana, and Auditor Investigator Erica Ciccarelli, underneath the supervision of Labor Bureau Chief Karen Cacace and Deputy Bureau Chief Younger Lee. The Labor Bureau is part of the Division for Social Justice, which is led by Chief Deputy Legal professional Basic Meghan Fake and overseen by First Deputy Legal professional Basic Jennifer Levy.