New York City Comptroller Brad Lander's office recovered $419,000 in back wages and benefits from the owner and contractor of a Bushwick apartment building after finding the project violated prevailing wage requirements tied to the 421-a tax exemption, the Comptroller's office said in a statement.
The finding covers construction and building-service work at the Bushwick property, which received the 421-a exemption — a property tax break that, in exchange, requires owners to pay prevailing wage to building-service employees and, on larger projects, construction workers for a set period. The Comptroller's office said its audit found workers were paid below the required prevailing rate, and the recovery includes both back wages and the value of benefits the workers should have received.
The Comptroller's office did not name the construction contractor or individual workers in its public statement, identifying the case by the Bushwick address and the property owner's obligation under the 421-a program. The office said in the statement that it reviews payroll records and certifications submitted under 421-a prevailing wage rules and pursues recovery when it finds a shortfall.
This is a 421-a compliance action, not a Bureau of Public Work prevailing-wage determination on a public contract — the legal hook is different even though the dollar mechanics look similar to a public-works wage case. 421-a prevailing wage applies because the building took the tax exemption, not because it's a public job, and the Comptroller's office — not NYSDOL — is the enforcer for that specific program.
The office's statement did not include a response from the owner or contractor, and did not say whether the finding is being appealed.