On June 26, 2024, the New York City Comptroller’s Bureau of Labor Law commenced lawsuits against Planned Lifestyle Services and Planned Building Services. The Comptroller alleges the Planned Companies violated Real Property Tax Law § 421-a, based on not paying prevailing wages and supplemental benefits to building service employees at two buildings.
Planned Companies was hired to provide cleaners, doorpersons, and security guards at 282 S. 5th Street in Williamsburg, Brooklyn, owned by Sam Spilkes LLC (Sam Spilkes), and at 546 W 44th Street in Manhattan, owned by CREF 546 West 44th Street LLC (CREF). Employees at both buildings filed complaints at the New York City Office of Administrative Trials and Hearings. They asserted that the companies owe a total of $145,331.81 in back wages, interest, and civil penalties.
The employee complaints triggered the Comptroller’s Bureau of Labor Law to conduct investigations. The Bureau of Labor Law uncovered that Planned Companies’ cheated workers out of over $140,000 in wages. Both the building owners and Planned Companies are liable for this amount.
Prior to these complaints, there have been three accounts not paying prevailing wage and supplemental benefits by Sam Spilkes and Planned Companies.
Between December 2018 through June 2020, Planned Companies failed to pay prevailing wage and supplemental benefits to employees at the Williamsburg building in the amount of $72.697.83. This case has not been settled yet.
During January 2020, the Comptroller’s Office found that Planned Companies did not pay prevailing wages in over $450,000 in lost wages to the building service employees at the Williamsburg building. This amount has been paid.
Between March 2019 and February 2021 when investigating the building at 546 W 44th Street the Comptroller found that Planned Companies failed to pay prevailing wage and supplemental benefits in the amount of $72,633.98. This case has not been settled yet.
Claudia Henriquez, Director of Workers’ Rights at the Comptroller’s Bureau of Labor Law said, “This isn’t our first investigation against Planned Companies, and we cannot stand by while workers continue to be cheated out of their hard-earned wages. This is about ensuring fairness and accountability for all employees employed by Planned.”
32BJ SEIU President Manny Pastreich said, “Building service workers have fought too hard to win and defend local labor standards to allow companies like Planned who flagrantly violate the law and steal wages from essential workers. We thank Comptroller Brad Lander for his diligence in defending the critical prevailing wage standards for the hard working New Yorkers who make these buildings run. These workers must be made whole.”
By: Chelsea Ramjeawan (Chelsea is the CityLaw intern and a New York Law School student, Class of 2025.)