Attorney General James and Comptroller Lander Secure Nearly $230,000 for Building Employees Cheated Out of Fair Pay

 

New York Attorney General Letitia James and New York City Comptroller Brad Lander today announced a settlement totaling almost $230,000 with a contracting agency and the Board of Managers of a New York City condominium building for failing to pay workers in the building the prevailing wage required by New York law. From 2016 to 2019, Allied Universal Security Services (Allied Universal) underpaid the security guards it was contracted to provide at 540 West 28th Street Condominium (the Condominium) in Chelsea, depriving some workers of almost $30,000 each in fair pay. As a result of a joint investigation by the Office of the Attorney General (OAG) and the Office of the New York City Comptroller, Allied Universal will pay nearly $230,000 in restitution to OAG, which will be distributed entirely to the seven affected employees.

“Every New Yorker deserves to be compensated fairly and fully for their hard work,” said Attorney General Letitia James. “For years, Allied Universal swindled their workers out of their hard-earned wages while the owners of the building where they worked benefited from a lucrative tax break. Now, these workers will finally be paid what they are owed. I want to thank Comptroller Lander for his partnership in this investigation, and we will continue to hold employers accountable for wage theft to ensure all New Yorkers are paid fairly.”

“We take our responsibility to enforce prevailing wage laws seriously, to protect workers from companies that try to cheat them out of the wages they have earned,” said New York City Comptroller Brad Lander. “Today’s settlement proves that companies cannot escape accountability for exploiting their workers. I’m proud that our Bureau of Labor Law worked in partnership with Attorney General James’ team on this case to ensure the security guards at Allied Universal get the pay they deserved.”

In 2011, the Condominium received a Section 421-a tax break that required its owners to pay building service employees prevailing wages as established by the New York City Comptroller’s office. At the same time, the Condominium’s Board of Managers contracted with Allied Universal, a private security and staffing company, to provide security services for the building.

An investigation conducted by OAG and the Comptroller’s Office found that from September 2016 to February 2019, Allied Universal failed to pay the security guards working in the Condominium the wages owed to them under the prevailing wage rules. Seven employees were cheated out of thousands of dollars of supplemental benefit payments each, with some missing out on tens of thousands of dollars in fair pay.

For their violations of New York law, Allied Universal will pay the full amount its employees are owed plus interest, totaling $229,718.48. OAG will distribute the entirety of these funds as restitution to the former Allied Universal employees who were classified as Unarmed Security Guards from September 2016 to February 2019.

In addition, Allied Universal must conduct an audit of its contracts at all other New York City buildings and certify to OAG each year that all of its employees are being paid the prevailing wage at properties benefiting from a 421-a tax break.

New Yorkers who believe they have been a victim of wage theft or other labor law violations are encouraged to contact OAG by filing a confidential complaint online or calling (212) 416-8700.

The matter was handled for OAG by Assistant Attorney General Lawrence Reina under the supervision of Labor Bureau Civil Enforcement Section Chief Fiona Kaye. The Labor Bureau is led by Bureau Chief Karen Cacace and Deputy Bureau Chief Young Lee. The Labor Bureau is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.

The Comptroller’s Office’s investigation was conducted by Jose Quiroz, Deputy Director of Investigations, supervised by Frank Gonzalez, Director of Investigations in the Comptroller’s Bureau of Labor Law. The audit of underpayments was performed by Ilona Stadnicka, Auditor, supervised by Stuart Rimmer, Director of Audit. The Bureau of Labor Law is overseen by Claudia Henriquez, Director of Workers’ Rights.

Laborers Recruit Apprentices

 

The Joint Apprenticeship and Training Committee for Westchester and Putnam Construction Craft Laborers, Local Union #60, will conduct a recruitment from May 1, 2024 through May 14, 2024 for 10 Skilled Construction Craft Laborer apprentices, the New York State Department of Labor announced today.

Applications can be obtained at Westchester and Putnam Construction Craft Laborers, Local Union #60, 50 Prospect Hill Road, Brewster NY 10509, from 8:00 a.m. to 10:00 a.m., Monday through Friday, excluding legal holidays, during the recruitment period. This is a limited application recruitment. Only 100 applications will be distributed, on a first-come, first-serve basis. The recruitment will be offered for 10 business days or until 100 applications have been issued, whichever comes first. All applications must be received no later than 5/24/24.

The Committee requires that applicants:

• Must be at least 18 years old.
• Must have a minimum of a 10th grade education. Proof of education (e.g., transcript, diploma, GED/TASC) required at time of submitting application.
• Must have a valid driver’s license. Apprentices may be required to operate company vehicles.
• Must have reliable means of transportation to and from various job sites and required classes at the approved school.
• Must pass a drug test, at the expense of the sponsor, after selection and prior to enrollment in apprenticeship.
• Must be physically able to perform the work of a Skilled Construction Craft Laborer, as determined by a physical agility test and a signed affidavit, which includes:
• Working continually on feet throughout the workday.
• Lifting and carrying objects and operating equipment weighing up to 80 lbs. for extended periods of time.
• Having the ability to distinguish color-coded materials and supplies.
• Working in extreme weather conditions and temperatures for extended periods of time.
• Working in restricted or confined spaces.
• Working off of scaffolds or platforms at heights of 20 feet or more.
• Working in ditches and trenches up to 20 feet deep.
• Working near moving traffic.
• To pass the physical agility test, applicants must be able to (a) dig a two square foot by one foot deep hole with a shovel; (b) fill 10 sand bags with gravel and then carry each one 50 feet; (c) break concrete/rock with a 60 pound pavement breaker for 15 minutes with no breaks; (d) load with a shovel ½ cubic yard of material into a wheelbarrow, wheel 50 feet and deposit the material; (e) carry six scaffold planks, one at a time, 50 feet and place them on a scaffold; (f) carry 10 concrete blocks, one/two at a time, 50 feet and stack them; (g) carry six concrete forms, one/two at a time, 50 feet and stack them.

For further information, applicants should contact Westchester and Putnam Construction Craft Laborers, Local Union #60 at (914) 769-2440 Ext 15 and ask for Apprenticeship Coordinator Michael Cruz. Additional job search assistance can be obtained at your local New York State Department of Labor Career Center (see: dol.ny.gov/career-centers).

Apprentice programs registered with the Department of Labor must meet standards established by the Commissioner. Under state law, sponsors of programs cannot discriminate against applicants because of race, creed, color, national origin, age, sex, disability, or marital status. Women and minorities are encouraged to submit applications for apprenticeship programs. Sponsors of programs are required to adopt affirmative action plans for the recruitment of women and minorities.

MAYOR ADAMS ANNOUNCES FIRST ANNUAL INCREASE IN MINIMUM PAY RATE FOR APP-BASED RESTAURANT DELIVERY WORKERS

 

Minimum Hourly Rate Is Now $19.56 and Will Be Adjusted Annually for Inflation

 

Workers Now Earn Nearly $850 Million More Annually Since Department of Consumer and Worker Protection Began Enforcing Minimum Pay Rate

New York City Mayor Eric Adams and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga today announced that, effective immediately, the city’s minimum pay rate for app-based restaurant delivery workers is increasing to at least $19.56 per hour before tips. The $19.56 rate reflects the 2024 phase-in rate of $18.96 and an inflation adjustment of 3.15 percent — up from an average of just $5.39 per hour before enforcement began. When the rate is fully phased-in on April 1, 2025, workers will earn at least $19.96 per hour with an adjustment for inflation. Since DCWP began enforcing the minimum pay rate in December 2023, apps have paid the city’s delivery workers $16.3 million more per week across the workforce — an increase of 165 percent — totaling an additional $847.6 million annually.

 

“Our delivery workers have consistently delivered for us — and today the city is delivering for them,” said Mayor Adams. “I was raised by a working mother who supported my five siblings and me, and there are thousands of delivery workers doing the same to support themselves and their families. And while wages have not kept up with the rising cost of living, since the new pay rate has been enforced, delivery workers have already seen a 165 percent increase in their pay per week. This is what it looks like to stand with working-class New Yorkers and build a fairer economy.”  

 

“Today’s scheduled pay increase means we are delivering on our promises to the more than 60,000 app-based delivery workers in our city and ensuring they get compensated in accordance with the nation’s first minimum pay rate law,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “Thank you, Mayor Adams and Commissioner Mayuga, for ensuring that some of our city’s hardest workers are earning a more livable wage.”

 

“With the full range of flavors New York City has to offer at their fingertips, New Yorkers get instantaneous room service at all hours — and people who make that happen have high-risk, high-difficulty jobs. With this pay raise, we acknowledge their contributions to our city and continue to make their working life more manageable,” said Deputy Mayor for Operations Meera Joshi. “With thanks to DCWP, we look forward to continuing this progress, using data to make their workplaces — the streets — some of the safest in the nation for delivery.”

 

“The minimum pay rate has been enormously successful in raising wages for our city’s delivery workers and providing them greater means to support themselves and their families,” said DCWP Commissioner Mayuga. “Any delivery worker with questions about the minimum pay rate, or any of their other worker rights, should reach out to us. Thank you to our city’s tens of thousands of delivery workers for fighting for a dignified wage and to Mayor Adams for centering working-class New Yorkers in all that we do.”

 

DCWP is actively monitoring compliance, which includes analyzing monthly reporting from the apps. Based on compliance data submitted by Uber Eats, DoorDash, and Grubhub, which together make up 95 percent of the market:

• Workers are making a more livable wage. Delivery workers are earning $16.3 million per week more in wages. These workers went from being paid a rate of $5.39 per hour before tips — far below the minimum wage — to earning at least $17.96 per hour before tips.
• Apps are using the workers’ time more efficiently while maintaining the same number of app-based delivery workers (over 60,000). The number of orders per week and the number of workers performing deliveries have remained steady since enforcement of the minimum pay rate began, and the amount of time workers spent waiting for trips decreased.
• Consumers and restaurants have not been negatively affected. There was no change in the number of deliveries performed by workers for Uber Eats, DoorDash, or Grubhub, which together average about 2.6 million deliveries a week, both before and after enforcing the rate.
  

In June 2023, the Adams administration announced the final minimum pay rule, effective July 12, 2023, following a monthslong rulemaking process that included two public hearings and thousands of public comments. In early July, the major delivery apps sued the city, seeking to stop the minimum pay rate from taking effect. In September, the New York State Supreme Court ruled in the city’s favor, allowing enforcement of the minimum pay rate of $17.96 to begin. The apps appealed the State Supreme Court’s ruling, and in late November, the Appellate Division, First Judicial Department denied the appeals, paving the way for DCWP to finally begin enforcing the minimum pay rate.

 

In September 2021, the New York City Council passed Local Law 115, requiring DCWP to study the pay and working conditions of app-based restaurant delivery workers and to establish a minimum pay rate for their work based on the study results. DCWP published its study in 2022, which drew from data obtained from restaurant delivery apps, surveys distributed to delivery workers and restaurants, testimony, extensive discussions with stakeholders on all sides, and publicly available data. 

 

This minimum pay rate is just one part of the city’s holistic approach to improving working conditions for delivery workers. In his 2024 State of the City address, Mayor Adams announced plans to create the New York City Department of Sustainable Delivery, a first-in-the-nation regulatory entity to establish clear goals and guidelines for the future of delivery. In February 2024, Mayor Adams and the New York City Department of Transportation announced five public e-battery charging locations as part of the city’s new, six-month pilot program to test safe, public charging of lithium-ion batteries by an initial group of 100 delivery workers. The Adams administration has also launched a program for the first-of-its-kind street Deliveristas Hubs, utilizing existing infrastructure to provide a place for workers to rest and recharge.

 

Delivery Workers can visit DCWP’s Third-Party Food Delivery Services page or call 311 and say “delivery worker,” to learn more about the minimum pay rate. Workers can also submit questions or file complaints related to the minimum pay rate or other delivery worker laws in multiple languages online or by contacting 311.

Two Men Sentenced for Role in $9M Hospice Fraud Scheme

 

The owner of two California-based hospice companies, along with his biller and consultant, were sentenced for their respective roles in a scheme that resulted in stealing over $9 million from Medicare in false and fraudulent claims for hospice services.

Gayk Akhsharumov, 40, of Glendale, California, the manager and beneficial owner of San Gabriel Hospice and Palliative Care Inc. (San Gabriel) and Broadway Hospice Inc., was sentenced to one year and one day in prison and ordered to pay $9,185,211 in restitution. Akhsharumov’s biller and consultant, Karen Sarkisyan, also known as Kevin Sarkisyan, 45, also of Glendale, was sentenced to one year and one day in prison and ordered to pay $3,688,050 in restitution.

According to court documents, from around January 2018 through May 2021, Akhsharumov used his two hospice companies to defraud Medicare of approximately $9 million. During the scheme, Akhsharumov concealed his ownership and control over the hospice entities from Medicare, inserted nominee owners, paid kickbacks to patient recruiters, and profited from the scheme. In April 2020, after San Gabriel had ceased operations, Akhsharumov used the company to fraudulently obtain COVID-19 relief funds. Akhsharumov submitted or caused the submission of fraudulent loan applications to the Small Business Administration for an Economic Injury Disaster Loan and to a financial institution for a Paycheck Protection Program loan, for which San Gabriel received $50,000. He also stole approximately $91,483 in funds deposited into San Gabriel’s bank account through the Provider Relief Fund program, a Department of Health and Human Services program that was intended to rapidly distribute pandemic-related funding to health care providers that met certain criteria. 

During the scheme, Sarkisyan submitted false and fraudulent Medicare enrollment forms for San Gabriel, falsely identifying a straw owner as the sole owner and manager and concealing the actual owners and managers. As a result, San Gabriel submitted false and fraudulent claims to Medicare, which resulted in Medicare paying approximately $3,668,050 to San Gabriel, of which $3,180,677 was paid after Sarkisyan submitted the false enrollment applications.

Akhsharumov pleaded guilty on March 13, 2023, to conspiracy to commit health care fraud. Sarkisyan pleaded guilty on April 3, 2023, to conspiracy to defraud the United States.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General (HHS-OIG); Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; and Acting Assistant Director in Charge Amir Ehsaei of the FBI Los Angeles Field Office made the announcement.

HHS-OIG and the FBI Los Angeles Field Office investigated the case.

Assistant Chief Niall M. O’Donnell and Trial Attorney Patrick J. Queenan of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, the program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

News, updates and more from NYC Council Member Rafael Salamanca, Jr.

 

THE WEEK IN REVIEW

LINCOLN HOSPITAL CHECK PRESENTATION

I was proud to join Lincoln Hospital staff for a check presentation of $3 million to upgrade their sterilization equipment. 

As a former healthcare worker, I will always invest in our healthcare facilities, and in the people who work in them:

To date, my office has allocated $40,241,000 in capital funds for healthcare facilities in District 17, of which $10,469,000 were distributed to Lincoln Hospital

CELEBRATING HOLIDAYS IN THE BRONX

HAPPY EASTER! Wishing all celebrating a Happy Easter! RAMADAN MUBARAK   Wishing a joyous Ramadan Mubarak to all beginning their celebrations  UPCOMING EVENTS 2024 HEROES RECOGNITION BREAKFAST  Please join Team Salamanca as we honor heroic figures from the Bronx at our Annual Heroes Recognition Breakfast on Wednesday,  April 10th at the New York Botanical Garden.  *RSVP is required as seating will be limited* I hope to see you there! Visit our District Office at:  1070 Southern Boulevard Bronx, New York 10459 (718) 402-6130 salamanca@council.nyc.gov

Pelham Parkway Neighborhood Association Meeting April 9th at 7 PM.

 

The Pelham Parkway Neighborhood Association is starting the month of April the right way with TWO special guests!! With their monthly community event on TUESDAY April 9th,2024 starting at 7:00 pm at our NEW location Bronx House 990 Pelham Parkway South. Bx, NY 10461.

Our special guests scheduled to appear will be Ms Jessina Aponte,The NYC Parks Bronx Borough Commissioner AND Ms Megan Carroll Community Engagement, A S P C A . Please join us for this very interesting AND informative event. Lets all come out and hear what these interesting guests have to say !!

State Assembly Members Rajkumar and Benedetto Hold Bronx 'Smokeout Act' Rall in Pelham Bay.

Friday March 29th was the Bronx 'Smokeout Act Rally' in Pelham Bay directly across the street from an (alleged illegal) Smoke Shop located at 3030 Westchester Avenue, and within walking distance of several other similar Smoke Shops according to Assemblyman Benedetto.  

 

Assemblywoman Rajkumar who was not in office when the Marihuana Regulation & Taxation Act (MRTA) was signed into law on March 31, 2021 legalizing adult-use cannabis said there is not enough enforcement of the MRTA because there is only a limited amount of enforcement by only state authorized enforcement agents. The Smokeout Act (Stop Marijuana Overproliferation and Keep Empty Operators of Unlicensed Transactions), would allow local police and municipalities across the State to have the authority to close illegal smoke shops and seize all merchandise. She added that there are about 36,000 statewide including 2,000 in New York City, and that the state is losing millions of tax revenue from them.   

When asked why local City Councilwoman Kristy Marmorato was not at the Smokeout Rally since she is fighting two of these Smoke Shops on Williamsbridge Road in Assemblyman Benedetto's district, his answer was that she was not invited. As for the dwindling number of police officers in the NYPD and increased response times, Assemblywoman Rajkumer said Mayor Adams has assured that the NYPD could handle the illegal smoke shop situation if the NYPD was given the authority.     

Assemblywoman Jenifer Rajkumer speaks about legislation she has sponsored called the Smokeout Act, to allow local municipalities including the NYPD to close illegal smoke shops. 

Assemblyman Michael Benedetto speaks of the proliferation of smoke shops in his district. Behind the rally is one such smoke shop.

This smoke shop at 3030 Westchester Avenue was behind the Bronx Smokeout Rally.

Governor Hochul and Tracy Morgan Call on New Yorkers to Join Donate Life Registry

More Than 8,000 New Yorkers Await a Life-Saving Transplant

April Marks National Donate Life Month

Governor Kathy Hochul and Tracy Morgan joined the New York State Department of Motor Vehicles and Department of Health to encourage New Yorkers to give the gift of life by joining the NYS Donate Life Registry. April marks National Donate Life Month, which shines a spotlight on the urgent need for organ, eye and tissue donors.

“Too many New Yorkers find themselves faced with the knowledge that they or someone they love is in need of an organ transplant,” Governor Hochul said. “It only takes a moment to enroll, and that moment can end up saving lives. I encourage all New Yorkers to join Tracy and me and donate life.”

Actor and comedian Tracy Morgan underwent a kidney transplant in December 2010, which he credits with saving his life.

Tracy Morgan said, “I am living proof of the benefits of organ donation, and it has given me an opportunity to show people that you can go on and live a full life when you find a match. My donor saved my life and by enrolling in the New York Donate Life Registry, you could help save many others.”

There are more than 8,000 New Yorkers currently waiting for a life-saving organ transplant, according to the Organ Procurement and Transplant Network, and sadly, more than 700 New Yorkers die or are removed from the waiting list each year because they became too sick and an organ did not come in time to save their lives. One organ donor can save up to eight lives and heal 75 more through eye and tissue donation.

New Yorkers make up almost 8 percent of the national organ transplant waiting list, according to Department of Health data, however, the state’s organ donor registry enrollment lags nearly every other state. Any New Yorker aged 16 and older is eligible to enroll in the Registry. Donors can determine what they want to give, including specific organs and tissues, as well as identify whether the donation is for transplant, research, or both.

New Yorkers can enroll to be organ donors in a variety of ways in addition to directly through the NYS Donate Life Registry:

• Sign up through the NYS Department of Motor Vehicles or by completing the donation section on a driver's license or non-driver ID application or when you renew your license or non-driver ID.
• Complete the voter registration form or register to vote online.
• Complete the donation section on the application for an ID in New York City through the IDNYC program.
• New Yorkers have the option of becoming an organ donor when applying for various licenses or certifications from the Department of State, as well as the Department of Health. Those seeking sporting licenses (hunting, fishing, and trapping) through the Department of Environmental Conservation online portal can join the Registry as part of that process. People can also sign up through the Marketplace when they renew with NY State of Health.

The Registry database is confidential, and individuals can access their registration at any time to make changes. Frequently asked questions about organ donation and the Registry can be found online.

DMV also offers a Donate Life custom license plate to raise awareness and support critical research. When a New Yorker orders the plate, $20 of the annual fee is directed to the "Life Pass It On Trust Fund," which is used for organ donation and transplant research and educational programs promoting organ and tissue donation. In addition, since 2020, New Yorkers have had the opportunity to contribute to the Fund when filing their income taxes.

To learn more about organ donation, visit the Donate Life New York website.