A New York demolition company has agreed to pay $1.5 million to resolve allegations that it violated workers’ compensation laws, retaliated against employees who reported injuries, and failed to act on sexual harassment complaints.
Alba Services, a nonunion subcontractor, will distribute $1.4 million to nearly 700 current and former workers and allocate $100,000 for settlement administration, according to New York Attorney General Letitia James. The company allegedly did not report hundreds of workplace injuries from 2016 through 2024 in order to reduce its insurance costs. The attorney general’s office also said Alba threatened workers who tried to file claims.
The case came after Local 79, a laborers’ union, launched a public campaign in 2022 accusing Alba of intimidating injured employees by offering rewards for information about those making what the company called “false” claims. This led the attorney general’s office to open an investigation based on the union’s information.
According to officials, Alba posted flyers with names of claimants, accused them of fraud, and offered $5,000 rewards for information leading to their arrests. Owner Andrew Horan reportedly sent messages naming employees who filed claims and offering cash incentives for details about them. Investigators found that the company improperly disclosed employee names at least 60 times.
State officials also said Alba sent representatives with injured staff members to medical facilities in order to provide misleading accounts of how injuries occurred. The firm allegedly directed some workers needing emergency care to specific clinics so as not to report workplace injuries.
The attorney general’s office described two cases where women reported being sexually harassed by an Alba foreman; when they rejected his advances, he assigned them harder work or reduced their hours.
Under the settlement terms, Alba must dismiss the foreman involved in harassment complaints and implement anti-harassment policies and training programs. The company will be monitored by state authorities for at least three years and is required to submit reports twice yearly demonstrating compliance with labor laws.
An attorney representing Alba stated that as part of the agreement the company does not admit or deny wrongdoing.
In a separate matter last year, prosecutors indicted Alba along with other firms in connection with an alleged construction kickback scheme involving inflated contracts at two Manhattan properties: 250 Fifth Avenue and 189 Bowery.
Local 79 has previously campaigned against other nonunion contractors over similar issues; these efforts have sometimes resulted in legal action from state authorities. In one instance in 2020, Attorney General James reached a settlement with TradeOff Construction Services over unaddressed sexual harassment complaints from employees.
During its campaign against Alba Services, Local 79 urged developers—including Columbia Property Trust and L&L Holding—as well as pension fund managers to end business relationships with the subcontractor due to its practices at sites such as Terminal Warehouse and Rockrose’s redevelopment project at St. Francis College.
“This settlement isn’t just about Alba, it is about non-union workers throughout the city who suffer under similar circumstances,” Anthony Vita, business manager at Local 79, said in a statement. “This is an important step in leveling the playing field for responsible contractors.”
