Comptroller’s Office Secures $145K+ in Back Wages from Building Services Contractor for 421-a Prevailing Wage Violations at Two...

Comptroller's Office Secures $145K+ in Back Wages from Building Services Contractor for 421-a Prevailing Wage Violations at Two Apartment Complexes

New York, NY - New York City Comptroller Brad Lander successfully reached a settlement of $145,331.81 with Planned Lifestyle Services and Planned Building Services - divisions of Planned Companies - for failure to pay the prevailing wage and supplemental benefits to building service employees at two buildings receiving tax benefits under Real Property Tax Law § 421-a.

The settlements include interest, civil penalties, as well as a requirement for Planned Companies to train payroll personnel on the prevailing wage, coordinate with the Comptroller on prevailing wage trainings for building service employees, and post notices at all buildings subject to prevailing wage requirements.

"Workers deserve to be paid every dollar they've earned," said New York City Comptroller Brad Lander. "My office will not tolerate repeated violations of prevailing wage laws. Because of the hard work of the Bureau of Labor Law, our office can hold building service companies accountable while ensuring employees regain their hard-earned wages."

"Planned Companies and the building owners at these properties violated prevailing wage laws and deprived employees of over $140,000 in rightfully earned wages," said Claudia Henriquez, Director of Workers' Rights at the Comptroller's Bureau of Labor Law. "This settlement establishes mechanisms that will help prevent future violations, while also ensuring the workers receive the pay they deserve."

Sam Spilkes LLC (Sam Spilkes), owner of an 82-unit residential building at 282 South 5th Street in Williamsburg, Brooklyn, and CREF 546 West 44th Street LLC (CREF), owner of a 280-unit residential building at 546 West 44th Street in Manhattan, both hired Planned Companies to provide service employees such as cleaners and doorpersons at their respective buildings.
Based on complaints filed by employees at both buildings, the Comptroller's Bureau of Labor Law conducted two investigations that found that Planned Companies' workers missed out on over $140,000 in pay. Both the building owners and Planned Companies are liable.

The investigation at Sam Spilkes' building in Williamsburg, Brooklyn found that Planned Companies failed to pay prevailing wage and supplemental benefits to employees between December 2018 through June 2020. The back wages and penalties settled for work performed at the Williamsburg building total $72.697.83, including interest and civil penalty.

The investigation at 546 W 44th Street also found that Planned Companies failed to pay prevailing wage and supplemental benefits between March 2019 and February 2021. The back wages and penalties settled for employees performing work at this location total $72,633.98, including interest and civil penalty.

This was not the first investigation into Planned Companies and Sam Spilkes. In January 2020, the Comptroller's Office found that Planned Companies did not pay prevailing wages as required by law at the same Williamsburg building owned by Sam Spilkes. Sam Spilkes agreed to pay over $450,000 in lost wages to the building service employees. In order to prevent future violations, the 2024 settlement agreements include additional measures focused on training and compliance.

"The Holiday Season is typically an opportunity for New Yorkers to offer thanks to Residential building service workers we rely upon. SEIU 32BJ thanks Comptroller Brad Lander for doing his part for the hard working New Yorkers who take care of the buildings we call home by defending critical prevailing wage standards. New York can't let companies like Planned violate hard won wage and labor standards. And to that end, we welcome the terms of the lawsuit settlements, including payment of $145,000 for full backpay damages with interest, and mandated prevailing wage training for Planned's staff along with the posting of prevailing wage notices in all of Planned's properties," said Manny Pastreich, President of 32BJ SEIU, a union that represents over 36,000 residential building service workers in New York City.

The Bureau of Labor Law's proceedings were handled by Agency Attorney Jamshid Saloor and overseen by Supervising Attorney Amy Luo. The investigations were conducted by Investigator Rudolpho Donawa under the supervision of Jose Quiroz, Deputy Director of Investigations and Francisco Gonzalez, Director of Investigations. The audits were performed by Xiaoyue Lin and Ilona Stadnicka under the supervision of Director of Audit Stuart Rimmer. The Bureau of Labor Law is overseen by Claudia Henriquez, Director of Workers' Rights

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