Example of New York Employer Workers Comp Fraud

Controversy is brewing in New York about allegations that one of our state senators got rich at the expense of poorly paid laborers.

A lawsuit was filed against Senator Pedro Espada accusing him of setting up a property management company to hire “trainees” as janitorial workers at health care clinics. In reality, claims the suit, the individuals were workers brought on for only two weeks at a time and paid as little as $1.70 an hour.

The lawsuit is controversial in some circles because it was filed by state Attorney General Andrew Cuomo. Cuomo’s detractors claim that he filed the suit in an attempt to ruin Espada’s political future.

However, the charges against Espada are grave. Not only did Espada’s company fail to pay its workers properly, it failed to keep proper pay stubs, pay state unemployment taxes, withhold federal income tax, and obtain workers’ compensation insurance.

Without New York workers’ compensation insurance, if any of Espada’s employees had been injured or killed while on the job, they would have been unable to secure workers’ comp medical and other benefits due to them by law.

In addition, Espada’s company justified the terrible pay and 2 week job stints by calling them training sessions. At the end of each 2 week “session”, workers were given a certificate claiming that they had completed a “healthcare maintenance internship”, which was in fact a useless piece of paper.

According to Cuomo, Espada and his son – who joined him in the business venture – made about $270,000 per year off of their illicit business, scamming at least 100 workers in the last 5 years.

The lawsuit against Espada seeks to secure back pay for workers victimized by the scam – plus interest – and orders an end to the phony training program.

This is another example of how employers take advantage of low-wage workers to line their own pockets, never stopping to think about the health or well-being of their workers. Fair pay and adequate workers’ comp insurance are two very important things that every New York worker deserves on the job.

Got a New York workers’ comp issue of your own? Don’t wait another day – contact the skilled and confidential NY workers’ compensation lawyers at Markhoff & Mittman. Let our experienced workplace injury attorneys protect your rights and get you the compensation you deserve.

Markhoff & Mittman, P.C.

14 Mamaroneck Avenue

Suite 400

White Plains, NY 10601

Toll Free: (866) 205-2415

Phone: (914) 946-1452

Fax: (914) 946-0810