Attorney General secures $1.5 million settlement over abuses at NYC construction firms

Attorney General Letitia James - Official website
Attorney General Letitia James - Official website
0Comments

New York Attorney General Letitia James has reached a $1.5 million settlement with Alba Services, Inc., its owner Andrew Horan, and related construction and demolition companies in New York City after an investigation found widespread violations of workers’ compensation laws, retaliation against injured employees, and failure to address sexual harassment at worksites. The agreement follows an extensive inquiry by the Office of the Attorney General (OAG) that identified unlawful practices affecting more than 700 workers over nearly a decade.

“For nearly a decade, Alba silenced injured workers, manipulated insurance costs, and allowed a culture of harassment to fester on its worksites,” said Attorney General James. “Today, I am proud to deliver $1.4 million to workers harmed by this misconduct. We have made sure that Alba can no longer threaten, intimidate, or exploit its workforce. My office will never allow companies to cheat workers out of their rights or create hostile workplaces that endanger their safety and dignity.”

The OAG began investigating Alba in 2022 after receiving information from Construction & General Building Laborers’ Local 79. Reviewing over 60,000 documents and interviewing numerous witnesses, investigators found that between 2016 and 2024 Alba failed to report many workplace injuries as required by law and instructed employees not to file eligible claims. Less than half of legally mandated injury reports were submitted by the company during this period.

Alba also retaliated against employees who tried to file claims through various means including public accusations of fraud and offering cash rewards for information leading to their arrest. In at least two instances, flyers naming claimants were posted publicly; additionally, company leadership sent messages exposing worker identities in violation of privacy rules.

The investigation showed further interference with medical care for injured staff: company representatives sometimes accompanied them to healthcare facilities while misrepresenting how injuries occurred. Workers were directed toward specific clinics under agreements with Alba in order to conceal workplace incidents or block legitimate claims—even when emergency room treatment was needed.

Sexual harassment was another significant issue cited by the OAG’s findings. At least two female employees described repeated inappropriate conduct by a foreman who sent unsolicited messages and engaged in unwanted physical contact; after rejecting his advances they faced harsher assignments or lost work hours altogether. Reporting such behavior resulted in retaliation rather than resolution.

Alba’s practices disproportionately affected immigrant and non-union laborers who often feared retribution if they reported injuries or sought benefits—allowing the company both to avoid higher insurance premiums and gain a competitive edge.

Under the terms of the settlement announced Tuesday, Alba must pay $1.4 million in restitution directly benefiting current and former employees harmed between 2016-2024; another $100,000 is designated for an independent administrator managing claims distribution among eligible individuals suffering wage loss, medical expenses or retaliation due to workplace injuries.

Additionally, the company is now obligated to overhaul its business operations: all injuries must be accurately reported; retaliation must cease; medical treatment interference is prohibited; comprehensive anti-harassment policies are required along with mandatory training sessions provided biannually in English, Spanish and Russian languages; oversight by OAG will continue for three years—with possible extension up to six years—and compliance reports are due twice yearly.

“Alba Services and their family of companies played the system for years while hard-working demolition workers struggled,” said Anthony Vita of Local 79 laborers union. “This settlement isn’t just about Alba…it is about non-union workers throughout the City who suffer under similar circumstances…We appreciate Attorney General Letitia James’ commitment to justice for all workers.”

“This settlement makes one thing clear: no employer is above the law…Nearly a thousand workers were silenced and mistreated…and today they are seen, heard, and vindicated…” added Brendan Griffith from NYC Central Labor Council AFL-CIO.

Gary LaBarbera from New York State Building Trades noted that too often vulnerable workers face exploitation without consequences but called this result “an instance of accountability” that sets a precedent against abusive practices.

A former employee shared: “For years I struggled working for Alba services…I didn’t think there was a place to turn…Today Attorney General James sent a message that demolitionistas deserve justice.” Another stated: “I want to thank Attorney General Letitia James for standing up for us…Not just for me but for all the workers left at Alba who now know that rights will be protected.”

Attorney General James encouraged anyone experiencing labor law violations or sexual harassment at work within New York State to contact her office confidentially online or via phone at (212) 416-8700.

The OAG acknowledged assistance from the Workers’ Compensation Board during its investigation process.

This action follows several recent enforcement efforts led by Attorney General James targeting wage theft, unpaid sick leave violations,settlements with large employers, sexual harassment cases,recovery of wages owed across multiple industries,and actions against coercive contracts impacting health care recruits.Further reforms addressing discrimination have also been secured recently.Large-scale settlements involving tip thefts,unpaid compensation,withheld tips,wage parity issues,and driver earnings shortfalls have been concluded under her tenure as well.



Related

Attorney General Letitia James - Official website

Attorney General James’ office releases findings on Daniel McAlpin shooting

The Office of Special Investigation (OSI) within the New York Attorney General’s office has released its findings on the death of Daniel McAlpin, who died on September 9, 2022 after an encounter with law enforcement in Ulster County.

Attorney General Letitia James - Official website

First Circuit denies Trump administration request in SNAP benefits case

New York Attorney General Letitia James responded after the U.S. Court of Appeals for the First Circuit rejected the Trump administration’s attempt to delay a lower court order that mandates the full distribution of Supplemental Nutrition…

Attorney General Letitia James - Official website

Attorney General James criticizes Supreme Court stay on SNAP benefit order

New York Attorney General Letitia James responded to the U.S. Supreme Court’s decision to grant the Trump administration’s request for a temporary stay on a lower court order that would have required the distribution of full Supplemental Nutrition…

Trending

The Weekly Newsletter

Sign-up for the Weekly Newsletter from New York Courts Daily.