New York City Comptroller Scott M. Stringer announced an agreement last week between National Insulation & GC, Corp. and the Office of the New York City Comptroller, Bureau of Labor Law, in which the company admitted to willfully and knowingly failing to pay Francisco Ayala and Angel Ribadeneira prevailing wage for contracted work with the Department of Education (DOE). National Insulation will pay a fine of $435,666.72, including more than $39,000 in civil penalties to the City, as a result of the settlement.
“We have found that all too often, employees are fleeced out of money to which they’re entitled by unscrupulous contractors looking to cut corners,” Stringer said. “These employees worked hard for their salaries and they deserve to get every cent that’s rightfully owed to them. My office will continue to pursue these bad actors that fail to provide a legal wage.”
Ayala and Ribadeneira were hired by National Insulation to perform insulation work at New York City public schools between December 2006 and November 2010. An investigation by the Comptroller’s office into National Insulation, prompted by a DOE referral and evidence provided, revealed allegations of under reporting hours, misclassification of workers, and use of “ghost workers” on sites.
“I’m grateful to hear I’m going to receive the money that is rightfully owed to me for the hard work I performed,” said Ayala, who is receiving $294,000. “I plan to deposit the check, pay off whatever current bills I have and research the best way to invest the money.”
“I’m thrilled,” said Ribadeneira, recipient of a $102,000 payout. “I’m going to make certain my wife and I will have enough to live on comfortably and set aside money for my three sons and six grandchildren.”
They will receive checks paid out of funds currently withheld by the Comptroller on National Insulation’s contracts with the DOE. This is the first willful violation by National Insulation.
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