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Davidson News

NYC Comptroller Takes Legal Action Against Developer for $40M Unpaid Wages

The New York City (NYC) comptroller initiates legal action against residential developer BLDG 44, alleging over $40 million in unpaid wages and penalties linked to labor regulations under the now-defunct 421a property tax incentive for new housing construction, according to Marcum.

NYC Comptroller Takes Legal Action Against Developer for $40M Unpaid Wages (Photo: The Real Deal)

NYC Comptroller Response on Alleged Wage Violations Spark Legal Battle

The Bureau of Labor Law files a lawsuit against BLDG 44 Developers, citing violations of labor regulations tied to New York State’s 421a program, which mandates minimum average hourly wages for construction workers. An investigation uncovered significant underpayments totaling $32.2 million for construction work conducted between June 2015 and August 2019.

Under the 2017 law, developers were required to ensure a minimum average hourly wage for construction workers, failing which they faced penalties. BLDG 44 allegedly fell short of this requirement, resulting in a penalty of $8 million on top of the alleged underpayment, bringing the total to $40.3 million.

The Concord District Court in New York City will oversee the legal proceedings concerning the lawsuit filed by the city comptroller against BLDG 44, highlighting the gravity of the situation and the legal repercussions faced by the developer.

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City Officials Advocate for Wage Equity After NYC Comptroller Takes the Legal Action

City Housing Preservation and Development Commissioner Adolfo Carrión Jr. stresses the importance of fair wages and compliance with labor regulations, especially within programs like 421a aimed at fostering affordable housing. He asserts the city’s commitment to accountability and cooperation with the comptroller’s investigation.

The audit revealing the underpayment was conducted by Auditor Zhanna Shalomov and Director of Audit Stuart Rimmer, underscoring the meticulous scrutiny applied to ensure fair compensation for workers and adherence to labor laws.

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