Copyright AM New York
More than 700 current and former construction and demolition workers will share $1.4 million as part of a settlement with their employer after the New York Attorney General’s Office found the company guilty of widespread labor abuses. The $1.5 million settlement, announced Tuesday by AG Letitia James, follows an investigation that found Alba Services, Inc. repeatedly violated state workers’ compensation laws, retaliated against injured employees, interfered with medical treatment, and failed to prevent sexual harassment in the workplace. In addition to the $1.4 million restitution fund, Alba will pay $100,000 to a settlement administrator and implement sweeping workplace reforms. The administrator will oversee the fund, which will offer significant compensation to workers who experienced lost wages, incurred medical costs, faced delays in treatment, were discouraged from filing workers’ compensation claims, or suffered retaliation following workplace injuries. Representatives for Alba did not respond to requests for comment on the settlement or the findings of the OAG’s investigation. “These workers helped build our skyline. They’ve cleaned up demolition sites, and they’ve kept our city running. In return, they were denied the dignity, safety, and respect that every worker deserves,” AG James said at a press conference Tuesday, flanked by several of the workers. “The way Alba treated these hard-working New Yorkers was unjust and totally unacceptable, and today we are righting those wrongs,” she added. She called the company’s behavior “a deliberate system of intimidation and cover up” and said the settlement “sends a clear and concise message — if you retaliate against injured workers, if you harass women on your work sites, if you manipulate insurance cost or deny benefits, we will bring you to justice.” The investigation, launched in 2022 after a referral from Construction & General Building Laborers’ Local 79, found that between 2016 and 2024, Alba failed to report hundreds of workplace injuries and instructed employees not to file workers’ compensation claims. The OAG said Alba retaliated against employees attempting to file workers’ compensation claims by using harassment, threats, and financial incentives to keep them silent. On at least two occasions, the company publicly posted flyers naming workers who had filed claims, accusing them of fraud and offering $5,000 for information that could lead to their arrests. Owner Andrew Horan also allegedly sent text messages to foremen that improperly revealed employees’ names and offered cash rewards for information about them. The OAG said it had documented at least 60 instances in which Alba disclosed workers’ identities unlawfully. AG James said the company also interfered with medical treatment by sending representatives with injured employees to health facilities and misrepresenting how injuries occurred. She said the company directed employees to specific clinics with which it had agreements to hide workplace injuries and prevent workers’ compensation claims. In certain cases, workers with serious injuries were sent to preferred urgent care facilities instead of receiving necessary emergency room treatment. James said during the press conference that OAG’s investigation did not find any wrongdoing on the clinic’s behalf. At least two workers reported repeated harassment by a foreman, who sent inappropriate messages, made unwelcome comments about their appearance, and engaged in physical contact. When the women rejected his advances, he retaliated by assigning them more grueling tasks. One worker who tried to report the misconduct had her hours reduced and was eventually removed from the schedule. Under the settlement, Alba terminated the foreman and was directed to implement comprehensive anti-harassment policies and training to protect employees going forward. Alba must also accurately report all workplace injuries and stop retaliating against employees. The company will be subject to at least three years of monitoring by the attorney general’s office, with an option to extend oversight to six years if violations persist. “This case shows what can happen when workers take collective action,” Oona Adams of Laborers’ Local 79 said. “Today’s settlement fundamentally resets the demolition industry in New York City.” Adams added that contractors and demolition companies whose business model relies on exploitation are “now on notice” and that “they will be held accountable.” Workers who believe they have experienced labor law violations or workplace sexual harassment are encouraged to contact the OAG at (212) 416-8700. Business as usual for indicted AG After being federally indicted on Oct. 9, Attorney General Letitia James is scheduled for an initial court appearance on Friday, Oct. 24, on charges of bank fraud and making false statements to a financial institution. Lindsey Halligan, recently appointed by President Donald Trump to lead the U.S. Attorney’s Office for the Eastern District of Virginia, is overseeing the indictments of AG James and former FBI Director James Comey. On Monday, Comey filed motions to dismiss the federal charges against him, which allege false statements and obstruction of a congressional investigation. Comey asked the federal judge to drop the case, claiming he is being prosecuted vindictively due to President Trump’s hostility toward him, and that the indictment is invalid because Halligan was appointed improperly. Recent reports indicate Halligan sent multiple texts to a Lawfare journalist regarding AG James’s indictment, disputing coverage of the case. On Tuesday, James declined to comment on Halligan’s texts or whether she intends to seek dismissal of the criminal case like Comey. “We’ll have more to say about that on Friday,” James said. “The charges are baseless. At the end of the day, it is nothing more than retribution for me doing my job.” The AG emphasized she remains focused on her duties. “I will not bend, will not bow, will not capitulate. The charges are meaningless. They mean absolutely nothing.” James is among several Democratic state attorneys general who have challenged Trump administration policies affecting transgender rights, immigration, and state funding. In 2022, she filed a civil fraud lawsuit against Trump and his family real estate business, initially resulting in a $452.2 million penalty; a state appeals court later overturned the fine but upheld Trump’s responsibility for fraud. Trump has denied wrongdoing and criticized James’s office for pursuing the case for political reasons.
