Security Guards Were Robbed, Thompson Says

By MEREDITH KOLODNER

About 720 security guards who worked at city buildings will be getting more than $750,000 in back pay after the City Comptroller found that a private security firm violated prevailing wage laws.

WILLIAM C. THOMPSON: Wins hefty settlement.

John C. Mandel Security Bureau admitted to breaking the law, which applies to all companies that have contracts with the city to provide building and construction services. The Comptroller's investigation found that the company paid $1.50 per hour less to each worker than was legally required.

'Shortchanged Them'

"In this case, JC Mandel Security thought they could get away with shortchanging its security guards," said Comptroller William C. Thompson, Jr.

The settlement, which is the largest prevailing wage case ever handled by the Comptroller's Office, will be paid to guards who worked at Human Resources Administration sites across the city from January to December 2004.

The company paid the correct hourly wage, but failed to pay the supplemental benefit of $1.50 per hour that is also required under New York State Labor Law 230. The supplemental benefit could take the form of a medical plan, a pension plan, holiday pay, paid lunch or $1.50 more in hourly pay.

Settlement's Terms

JC Mandel Security, which was awarded a $52 million contract in 2003 to provide uniformed guard services at HRA buildings around the city, agreed to pay $754,307.29 in unpaid benefits and interest to those guards. It will also pay a fine of $75,430.73 to the city for violating the law. If the company receives another willful violation in the next six years, it could be debarred from doing business with the city.

"The Comptroller's action highlights the need to raise security industry standards which five years after 9/11 remain woefully inadequate," said Mike Fishman, president of Local 32BJ, the city's largest building service workers union.

Over the past five years, the Comptroller's Bureau of Labor Laws has collected $8,191,046 in underpayments and more than $582,325 in fines from 718 prevailing-wage cases.