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In New York, Wage Theft Violators Get Millions in Government Contracts
https://www.propublica.org/article/new-york-wage-theft-violators-government-contractsIn New York, Wage Theft Violators Get Millions in Government Contracts
ProPublica and Documented identified 25 employers that, despite histories of wage theft, have received contracts worth more than a collective $500 million from city and state agencies since 2018.
Co-published with Documented
by Marcus Baram, Documented, with data analysis by Joel Jacobs, ProPublica
July 15, 5 a.m. EDT
[...]
In New York, a company is only banned from receiving contracts if it committed multiple “willful” violations of wage laws, and that ban only applies to public construction projects and building service work, such as janitorial and security services. Many wage theft cases, including Fedcap’s, are not deemed willful, meaning that the federal Department of Labor did not determine that it knowingly broke the law.
As a result, city and state agencies repeatedly award contracts to companies even after the vetting process flagged histories of wage theft, an investigation by Documented and ProPublica has found. Joseph Brill, a spokesperson for the state Office of General Services, which oversees many centralized contracts for the state, said in a statement that “we are not aware of any vendor that has been deemed non-responsible solely because of a failure to pay appropriate wages.”
At least 25 companies and organizations, including Fedcap, have received a New York City or state government contract within three years of federal and state investigators finding that they had owed at least $100,000 in back wages to their workers, according to an analysis of nearly six years of contract records beginning in 2018, as well as wage-theft databases obtained from the U.S. and New York Labor departments.
[...]
ProPublica and Documented identified 25 employers that, despite histories of wage theft, have received contracts worth more than a collective $500 million from city and state agencies since 2018.
Co-published with Documented
by Marcus Baram, Documented, with data analysis by Joel Jacobs, ProPublica
July 15, 5 a.m. EDT
[...]
In New York, a company is only banned from receiving contracts if it committed multiple “willful” violations of wage laws, and that ban only applies to public construction projects and building service work, such as janitorial and security services. Many wage theft cases, including Fedcap’s, are not deemed willful, meaning that the federal Department of Labor did not determine that it knowingly broke the law.
As a result, city and state agencies repeatedly award contracts to companies even after the vetting process flagged histories of wage theft, an investigation by Documented and ProPublica has found. Joseph Brill, a spokesperson for the state Office of General Services, which oversees many centralized contracts for the state, said in a statement that “we are not aware of any vendor that has been deemed non-responsible solely because of a failure to pay appropriate wages.”
At least 25 companies and organizations, including Fedcap, have received a New York City or state government contract within three years of federal and state investigators finding that they had owed at least $100,000 in back wages to their workers, according to an analysis of nearly six years of contract records beginning in 2018, as well as wage-theft databases obtained from the U.S. and New York Labor departments.
[...]