Luxury Developer to Pay $2.6M for Underpaying Staffers
By Celia Young October 6, 2022 3:57 pm
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Developer Heatherwood Luxury Rentals reached an about $2.6 million settlement with New York City after an investigation by Attorney General Letitia James found Heatherwood underpaid its 24 building service workers at two apartment properties in Brooklyn and Queens.
The two buildings — 27-03 42nd Road in Long Island City, Queens, and 568 Union Avenue in Williamsburg, Brooklyn — benefitted from the city’s 421a tax abatement program, which cut Heatherwood’s tax burden in exchange for it paying higher wages to property employees. But for two years, Heatherwood paid its workers less than half of what they should have received under the provisions of the tax program, according to James’ office.
“Workers are the backbone of New York, and they deserve fair pay and benefits for their hard work,” James said in a statement. “Paying workers fair wages and benefits is not a luxury, it’s the law, and Heatherwood cheated these workers and taxpayers.”
Heatherwood completed its 27-story Long Island City building in 2013 and the seven-story Union Avenue property in 2011, promising to pay its employees between $22 and $26 per hour with benefits. Instead, Heatherwood handed out salaries of less than $15 an hour and as low as $8.50 an hour without benefits, according to James.
The two dozen workers will get between $2,000 and $126,000 each depending on their seniority and how long they worked for Heatherwood, according to a spokesperson for the attorney general. In total, the developer agreed to pay $1.2 million in fines to the city, $686,527 in penalties to the state and $723,324 in unpaid wages plus interest to the 24 staffers, according to James’ office.
Heatherwood owns a handful of residential buildings around the city including the 451-unit tower at 42-12 28th Street in Long Island City, 12 Eckford Street in Greenpoint and 544 Union Avenue in Williamsburg, as well as several properties in Long Island, according to its website.
Heatherwood declined to comment.
Celia Young can be reached at cyoung@commercialobserver.com.
