NYC-Subsidized Construction Firms Owe Millions to Their Own Workers
The Daily News reveals that contractors recruited by New York City to build affordable housing owe their own workers millions of dollars in unpaid wages:
Some members of the team helping Mayor de Blasio reach his dream of increasing the supply of affordable apartments in New York have a dirty little secret — an $11.8 million one. That’s how much an elite group of 10 contractors and one developer now building affordable units across the city owed this year to workers cheated out of wages they were supposed to get, a Daily News investigation has found.
The group is building or renovating nearly 2,800 affordable apartments in 37 developments across the city, records obtained under the Freedom of Information Law show. These projects are receiving $41 million in city grants or low-interest loans plus $206 million worth of tax credits. When finished, the apartments they’re building will count toward de Blasio’s oft-stated goal of building or preserving 200,000 affordable units in 10 years — a cornerstone of his administration. [NYDN]
Hat tip to reader Elizabeth, who sent us this story.
Wage violations are rampant in the construction industry, and employers find other ways to cheat employees out of benefits, too. Last month’s Sidney-winners exposed the rampant misclassification of construction workers as independent contractors, a practice that denies them benefits and dodges taxes.
[Photo credit: vpickering, Creative Commons.]
