Comptroller William C. Thompson, Jr. today announced that his office has won more than $750,000 for 720 security guards who were shortchanged for work at city buildings – the largest prevailing wage case settlement ever reached by the Comptroller’s Office.

“Security guards play an important and vital role in keeping our buildings safe and secure,” Thompson said. “We need to make sure they are properly compensated and receive the wages and benefits to which they are legally entitled under labor law.”

"By holding JC Mandel Security accountable on prevailing wages, Comptroller Thompson has sent a strong signal to security and other city contractors that wage violators will not be tolerated," said Mike Fishman, President of Local 32BJ, New York's largest security officers union. 

Fishman continued: "The Comptroller’s action highlights the need to raise security industry standards which five years after 9/11 remain woefully inadequate. Sixty thousand security officers are still struggling to make ends meet and get the training they need to keep us safe."

The Comptroller enforces New York State laws that require private sector companies that have contracts with the city to provide building services or construction services to pay their employees prevailing wages and benefits.

The Comptroller’s Office currently is tracking down the 720 security guards who had been hired by John C. Mandel Security Bureau, Inc. (JC Mandel Security) of the Bronx to work at Human Resources Administration (HRA) sites across the city.

In 2003, JC Mandel Security was awarded a $52 million contract to provide uniformed security guard services in HRA offices in the five boroughs.

Over the course of one year - January to December 2004 - JC Mandel Security paid the security guards the hourly wage required by prevailing wage laws, but failed to pay the security guards the full supplemental benefit of $1.50 per hour that also is required. That supplemental benefit could be a medical plan, a pension plan, holiday pay, paid lunch or $1.50 more in hourly pay.

In November 2004, HRA asked the Comptroller’s Office to look into whether JC Mandel Security was paying the security guards the full $1.50-an-hour benefit required.

During the course of the Comptroller’s Office investigation, JC Mandel Security could not prove that it had paid the supplemental benefits. The Comptroller found that JC Mandel Security owed $754,307.29 in unpaid benefits and interest to the 720 security guards that it employed at the HRA sites.

As part of the settlement with the Comptroller’s Office, JC Mandel Security accepted a willful violation, which could result in JC Mandel Security being debarred from doing business with the City if it receives a second willful violation within the next six years. JC Mandel Security also was fined a penalty of $75,430.73 for violating the law.

“I appreciate the victory that the City Comptroller won for us security officers,” said Kyle Jiggetts, a former JC Mandel Security guard who worked at three different HRA sites. “I’m very happy that I am finally going to get back my unpaid benefits that JC Mandel Security stole from us.”

The 720 workers represent the most recipients ever in a prevailing wage case resolved by the Comptroller’s Office. This settlement also is the largest ever in a case prosecuted under New York State Labor Law 230, which includes building services contracts.

“In this case, JC Mandel Security thought they could get away with shortchanging its security guards, but now, those security guards are getting the pay they deserve,” Thompson said. “Prevailing wage laws are about protecting workers’ rights by ensuring that they receive the correct amount of wages and benefits. Contractors who attempt to ignore the law should know that this Office will catch up to you.”

Over the last five years, Thompson’s Bureau of Labor Law has resolved 718 prevailing wage cases and collected more than $8,191,046 in underpayments and more than $582,325 in fines. From January to October 2006 alone, the Bureau collected $3,871,838 in underpayments and $211,617 in penalties. Additionally, Thompson since taking office has debarred 20 contractors from doing business with the City as a result of labor law violations.

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