K.S. Contracting Corporation, based in Parsippany, New Jersey, and owned by Paresh Shah, is accused of cheating dozens of immigrant works out of $1.7 million in unpaid wages and benefits under the New York State Labor Law.
According to New York City Comptroller Scott M. Stringer, 36 workers lost $1.7 million in wages and benefits. Most of the employees affected earned $90 a day. Shah claimed rates for workers started at $50 an hour. Shah would issue paychecks to half of his workers, requiring them to cash the checks and return the cash back to him. Shah would then redistribute the cash to all of the employees, underpaying employees while creating the appearance of fair wages.
Watch how it worked:
Stringer fined K.S. Contracting Corporation $3.2 million and has barred the contractor from all city or state work for five years.
Over four years, K.S. Contracting Corporation was awarded $21 million in contracts by various departments of the New York City government. A 2010 employee complaint to the Comptroller's office started the investigation, which uncovered the scheme to underpay immigrant workers.
New York City Comptroller Scott M. Stringer said. “Contractors might think they can take advantage of immigrants, but today we’re sending a strong message: my office will fight for every worker in New York City. This is about basic fairness and accountability.”
For more details about the investigation, read the BlackStarNews.com article New York Comptroller Bars Contractor Accused of Wage-and-Benefits Cheating here.
(Video from Comptroller Scott M. Stringer's YouTube channel.)