A.G. Schneiderman Obtains $90k Agreement With Contractor Who Underpaid Workers On Taxpayer-Funded Affordable Housing Units

J.A.M. Construction Corp. Shortchanged Workers On A Chelsea Affordable Housing Project

Schneiderman: We Will Not Allow Employers To Get Away With Ripping Off Their Workers

NEW YORK – (RealEstateRama) — Attorney General Eric T. Schneiderman today announced a settlement with J.A.M. Construction Corp. (“JAM”), a subcontractor that performed carpentry work at a Manhattan affordable housing project. JAM, based in Rockville Centre, failed to pay required prevailing wages to eight workers at the Selis Manor Affordable Housing complex located at 135 West 23rd Street in Manhattan. In an Assurance of Discontinuance with the Attorney General’s Office, JAM agreed to pay over $80,000 in underpayments, as well as a penalty of $10,000.

“We will not allow employers to get away with ripping off their workers,” said Attorney General Schneiderman. “We will remain vigilant in protecting the rights of New York’s working men and women, and will continue to use monitors where appropriate to ensure ongoing compliance with the law.”

Between December 1, 2014 and August 31, 2015, JAM paid far less than the required prevailing wage for carpentry work on the Selis Manor project, and failed to pay supplemental benefits required by law. Federal and state prevailing wage laws seek to ensure that government contractors pay wages and benefits that are comparable to the local norms for a given trade, typically well above the state and federal minimum wage. The project included in the settlement with JAM was developed by New York City’s Department of Housing Preservation and Development and was subject to prevailing wage requirements.

The Attorney General’s Office learned of the violations by JAM through an independent monitor imposed upon a general contractor as part of a prior Assurance of Discontinuance. In March 2013, public-works General Contractor Procida Construction Corp. settled a prevailing wage case with the Attorney General’s Office. In addition to paying $980,000, Procida was required to submit to independent monitoring of its own labor practices and those of its subcontractors, with unannounced on-site inspections by the monitor. The monitor discovered the prevailing wage violations by JAM and reported them to the Attorney General’s Office for further action.

The case was handled by Section Chief Richard Balletta, led by Labor Bureau Chief Terri Gerstein and Executive Deputy Attorney General for Social Justice Alvin Bragg.

New York City Press Office: (212) 416-8060
Albany Press Office: (518) 776-2427
nyag.pressoffice (at) ag.ny (dot) gov

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