NYC Comptroller Levine Secures $419K in Back Wages & Benefits at Bushwick Building for 421-a Prevailing Wage Violations

NYC Comptroller Levine Secures $419K in Back Wages & Benefits at Bushwick Building for 421-a Prevailing Wage Violations

New York, NY - New York City Comptroller Mark Levine reached a settlement with 1237 Myrtle Holding LLC, Kai Management LLC, and Ground Support Services LLC for prevailing wage violations regarding 14 building service workers over the course of three years.  The settlement payments total $419,000, including back wages and benefits, civil penalties, and interest. 1237 Myrtle Holding LLC is the owner of the building at 960 Willoughby Avenue in Brooklyn - a building with 87 residential units receiving a 15-year 421-a tax exemption. The 421-a program was created to promote housing development, while ensuring that the workers staffing those buildings were compensated fairly.

"Building service employees and doorpersons are on the frontlines of keeping New Yorkers' homes safe and clean," said Comptroller Mark Levine. "We cannot tolerate building owners - especially those benefitting from tax breaks - denying these workers their rightful wages and benefits. My Office remains steadfast in our commitment to fight on behalf of all workers who make New York the greatest city in the world."

"Enforcing prevailing wage requirements is essential to protecting workers' rights and holding property owners accountable, particularly when they benefit from substantial tax incentives funded by New York taxpayers," said Claudia Henriquez, Assistant Comptroller of Labor Law. "These settlements send a clear message: the workers who maintain our city's buildings must not be shortchanged or denied the compensation they are entitled to under the law."

The first settlement is with 1237 Myrtle Holding LLC and the building's property manager, Kai Management LLC, for failing to pay a building service employee the salary and benefits required under the prevailing wage law from January 2022 to February 2025. This settlement is for $200,000, including interest and civil penalties.

The second settlement is with 1237 Myrtle Holding LLC, Kai Management LLC, and Ground Support Services LLC dba Greater Shield LLC for failing to pay prevailing wages and supplemental benefits to 13 doorpersons from January 2022 to November 2025. This settlement is for $219,000, including interest and civil penalties.

These cases were handled by Labor Law investigator Cordie McCann and Senior Labor Attorney Kristyn Sanito, under the supervision of the Director of Enforcement, Amy Luo. The audits of underpayment were performed by auditor Yevgeniya Braylovskaya, under the supervision of Stuart Rimmer, Director of Audit and Investigative Review.

###