New York AG announces $1.5M settlement against Alba Services for labor violations in construction, demolition work

0
307

New York Construction Report staff writer

New York Attorney General Letitia James announced a $1.5 million settlement Thursday with Alba Services Inc., its owner Andrew Horan, and affiliated construction and demolition companies for violations of workers’ compensation laws, retaliation against injured workers, and failure to address sexual harassment on job sites.

New York Attorney General Letitia James

“For nearly a decade, Alba silenced injured workers, manipulated insurance costs, and allowed a culture of harassment to fester on its worksites,” James said in a statement. “Today, I am proud to deliver $1.4 million to workers harmed by this misconduct. We have made sure that Alba can no longer threaten, intimidate, or exploit its workforce.

“My office will never allow companies to cheat workers out of their rights or create hostile workplaces that endanger their safety and dignity.”

The OAG launched an investigation in 2022 after a referral from Construction & General Building Laborers’ Local 79. Following a review of more than 60,000 pages of documents and dozens of witness interviews, OAG found that between 2016 and 2024, Alba failed to report hundreds of workplace injuries to the Workers’ Compensation Board (WCB) as required by law and explicitly instructed employees not to file eligible claims.

OAG determined that the company reported less than half of the injuries it was legally required to report. By keeping claims artificially low, Alba reduced its insurance costs and gained an unfair advantage over competitors.

More than 700 construction and demolition workers were impacted and, as a result, Alba must pay $1.4 million in restitution to employees and $100,000 for a settlement administrator.

“This settlement makes one thing clear: no employer is above the law. Exploiting and retaliating against workers will never be tolerated in New York,” said Brendan Griffith, President of the NYC Central Labor Council, AFL-CIO. “We commend Attorney General Letitia James for her fearless commitment to justice and thank our brothers and sisters at Local 79 for bringing these abuses to light.

“Nearly a thousand workers were silenced and mistreated, and today they are seen, heard, and vindicated. Accountability like this reminds every employer that when you harm workers, you answer to all of us.”

Under the settlement, Alba must implement reforms, including accurate reporting of injuries, anti-retaliation measures, mandatory anti-harassment training in English, Spanish, and Russian, and oversight by the Attorney General’s office for at least three years.

Labor leaders praised the settlement for holding a construction contractor accountable and “sending a warning to employers that abusive practices will not be tolerated.”

“Too often, unscrupulous contractors undermine the system and take advantage of vulnerable workers who are simply trying to support their families and pursue the middle class, and many times they face little to no consequences for these transgressions” said said Gary LaBarbera, President of the New York State Building Trades. “But today represents an instance of accountability and justice for hundreds of tradesmen and tradeswomen harmed by Alba’s misconduct.

“We applaud Attorney General James for standing up for these workers and setting a precedent that abusive business practices will not be tolerated. All hardworking New Yorkers deserve to pursue their careers in a dignified and safe environment that equips them to not only make ends meet but lead fulfilling lives.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here