The company repairing Coney Island Hospital had to turn its head and cough up more than half a million dollars in back wages after its subcontractors allegedly underpaid their employees, New York Attorney General Eric Schneiderman announced on Sept. 19.
The city hired Signal Restoration Services to repair the Sheepshead Bay medical center — along with Bellevue and Coler-Goldwater hospitals in Manhattan — after the ravages of Hurricane Sandy. But the state’s top lawman said his office found that the subcontractors working for Signal were not paying the required $16.99 wage for regular hours, or the minimum $25-an-hour overtime. In fact, the workers were often getting as little as $10 per hour — and no overtime pay at all.
Companies working under contract for the city are required to pay workers the prevailing wage, with overtime.
Schneiderman warned Signal and other clean-up companies to get their books in order as the city braces for future superstorms
“Disaster recovery contractors, who play a critical role for our state, should review their legal obligations before the next emergency occurs to ensure that they are not only disaster-ready but also legally compliant,” Schneiderman said.
Signal also had to reimburse Schneiderman’s office the $25,000 cost of the investigation.