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Investigation Finds MTA Contractor Underpaid Security Workers, $1.3M Settlement Reached

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After an investigation by the office of New York City comptroller Scott Stringer, security workers for AlliedBarton Security Services who were contracted by the Metropolitan Transit Authority (MTA) but did not receive prevailing wages will share a $1.3 million settlement.  

According to the New York Daily News, the settlement effects 143 workers employed by the company between October of 2010 and March of 2013.  AlliedBarton will also pay a $26,700 civil fine.  

“Nearly 150 security guards worked hard every day protecting transit employees, while their wages and benefits stalled,” Stringer said.

The employees were originally paid the correct wage of $27 an hour, according to the Daily News, but annual adjustments which would have boosted the workers’ earnings to $32.50 an hour by 2012 were not made.  Private companies which have contracts with the city must adhere to annual wage and benefit schedules by law.  

In a statement, AlliedBarton explained that this was not a “willful violation.”


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