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NY Contractor Fined for Withholding Wages

Wednesday, October 28, 2009

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A New York contractor has pleaded guilty to exploiting employees who did painting and other work for the 2009 U.S. Open at Bethpage State Park.

SB Waterproofing Inc. of Brooklyn pleaded guilty Monday in Nassau County Court to Offering of a False Instrument for Filing in the First degree. The company will pay $76,247 in restitution to the workers who were not paid the prevailing rate of wage for their work for the professional golf tournament, held in June.

The company has also been fined $500 and banned for five years from doing any public work in the state of New York.

New York State law makes it mandatory for contractors to pay its workers a certain rate when performing public work.

Authorities said SB Waterproofing had been awarded the contract to rebuild the conservatory and to strip and repaint the outside of the Bethpage State Park Clubhouse in time for the 2009 U.S. Open. The contract amount was $432,690.

Each of the 17 people who worked for the company on the project told investigators that they were not paid the project’s prevailing wage of $58.94 per hour. Some got paid below the prevailing rate, while others did not get paid at all.

“For a company to steal from its employees is outrageous, and I will continue to use the power of the criminal justice system to give these workers a voice,” said Nassau County District Attorney Kathleen Rice.

   

Tagged categories: Criminal acts

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