N.Y. AG announces $65,000 agreement with general contractor

NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman announced an agreement Thursday with a general contractor that allegedly underpaid more than 100 workers performing emergency post-storm reconstruction work after Hurricane Sandy.

After Hurricane Sandy, InStar Services Group LP subcontracted with a recruiter to hire employees for emergency reconstruction work in several stores owned by national retailers, including Staples the Office Superstore LLC and Michaels Stores Inc. Some of the employees were allegedly paid nothing at all, while others received only some of what they were owed.

Under the terms of the agreement, InStar paid $65,000 to be distributed in full to the workers. While InStar sold its operations in December and no longer performs construction work, the agreement contains added requirements to make sure that if InStar renews operations in the state, its subcontractors will remain in compliance with state law.

"These workers put in long days of hard labor to help New York businesses get back on their feet after Hurricane Sandy," Schneiderman said. "It's outrageous that they were not fully paid for all of their work, and I'm confident our agreement will help correct this injustice. It will also put emergency reconstruction firms like InStar on notice to ensure that all employees on their worksites are paid according to the law."

Schneiderman thanked the Empire Justice Center for bringing the matter to the attention of his office.