NYC Demolition Company to Pay $1.4M in Worker Compensation Violations

UPDATE: A New York City demolition company, Alba Services, has been ordered to pay $1.4 million to 700 current and former employees following allegations of systemic violations of workers’ compensation laws. This urgent decision comes after investigations by the New York Attorney General’s Office revealed that the company denied compensation claims and retaliated against workers for reporting injuries.

The disturbing revelations indicate that between 2016 and 2024, Alba Services reported fewer than half of the injuries it was required to, significantly lowering its claims and insurance costs. Attorney General Letitia James stated, “For nearly a decade, Alba silenced injured workers, manipulated insurance costs, and allowed a culture of harassment to fester on its worksites.”

According to the AG’s office, Alba explicitly instructed employees not to file claims with the Workers Compensation Board and retaliated against those who tried to do so. Investigators found that the company used threats and harassment to keep workers quiet. In at least two instances, Alba posted fliers of employees who filed claims, threatening criminal prosecution and offering financial rewards for information about them.

The situation escalated as the company’s owner, Andrew Horan, allegedly sent texts to foremen, illegally naming employees who had filed claims and soliciting information about them in exchange for money. The AG’s office also reported that Alba interfered with employees’ medical treatment, sending representatives to accompany them to appointments and misrepresenting the circumstances of their injuries.

Alba’s practices extended beyond financial misconduct. The AG’s office highlighted severe human rights violations, including failure to prevent sexual harassment and retaliatory actions against employees reporting misconduct. The company directed workers to specific clinics with which it had agreements, often concealing workplace injuries and blocking legitimate workers’ compensation claims.

This case underscores the ongoing struggle for workers’ rights and safety in New York City. The AG’s office emphasizes its commitment to protecting workers from exploitation. “My office will never allow companies to cheat workers out of their rights or create hostile workplaces that endanger their safety and dignity,” James affirmed.

As this situation develops, stakeholders are urged to monitor Alba Services for compliance with the restitution agreement and any further actions taken by the Attorney General’s Office to protect vulnerable workers. The impact of this ruling could resonate across the industry, sending a strong message against corporate malpractice and the importance of upholding workers’ rights.

Stay tuned for more updates as this story unfolds.