A New York demolition company has agreed to pay $1.5 million to settle allegations that it violated workers’ compensation laws, retaliated against employees who reported injuries, and failed to address sexual harassment complaints.
Alba Services, a nonunion subcontractor, will distribute $1.4 million among nearly 700 current and former workers. An additional $100,000 will go to a settlement administrator responsible for coordinating the payments, according to an announcement from New York Attorney General Letitia James.
Between 2016 and 2024, Alba Services allegedly did not report hundreds of workplace injuries. This allowed the company to reduce its insurance expenses. The attorney general’s office stated that Alba also threatened employees who attempted to file workers’ compensation claims.
The agreement follows a public campaign launched in 2022 by laborers’ union Local 79. The union accused Alba of intimidating employees by offering rewards for information about those filing what the company called “false” claims. After receiving information from the union, the attorney general’s office began investigating Alba in 2022.
The investigation confirmed several allegations previously raised by Local 79. According to officials, Alba posted flyers naming workers who filed claims, accused them of fraud, and offered $5,000 for tips leading to their arrests. Owner Andrew Horan reportedly sent text messages identifying claimants and offering cash incentives for information about them. Officials found that employees’ names were wrongfully disclosed at least 60 times.
State authorities also said Alba sent representatives with injured workers to medical facilities in order to provide misleading information about how injuries occurred. The company is also accused of directing injured staff members to specific clinics in an effort to conceal workplace injuries—even when emergency care was needed.
The attorney general’s office detailed two cases involving women who experienced sexual harassment by an Alba foreman. When they rejected his advances, he assigned them more difficult tasks or reduced their work hours.
Under the settlement terms, Alba must dismiss the foreman involved and implement anti-harassment policies and training programs. The attorney general’s office will monitor the company for at least three years; during this period, Alba must submit reports twice a year demonstrating compliance with relevant laws.
An attorney representing Alba stated that as part of the settlement agreement, the company does not admit or deny any wrongdoing.
In addition to these issues, Alba was named in a separate indictment in 2023 as one of 26 companies involved in a construction kickback scheme related to projects at 250 Fifth Avenue and 189 Bowery.
Local 79 has previously campaigned against other nonunion firms over similar concerns. In one case from 2020, Attorney General James arranged a settlement with TradeOff Construction Services after allegations of unaddressed sexual harassment surfaced there as well.
During its campaign against Alba Services, Local 79 urged developers and pension fund managers to end relationships with the subcontractor and protested its involvement at projects including Columbia Property Trust and L&L Holding’s Terminal Warehouse as well as Rockrose’s redevelopment of St. Francis College building.
“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.”
