NEW YORK (AP) – New York state has announced a $925,000 settlement with a Kennedy Airport contractor that had been paying skycaps below the minimum wage.
Attorney General Eric Schneiderman says that between 2008 and 2014, Alstate Maintenance LLC paid about 40 skycaps as little as $3.90 per hour.
The minimum wage ranged from $7.15 to $8 during the years covered by the investigation.
Although most skycaps receive tips, Alstate failed to qualify for a tip credit which would have allowed the company to pay workers at a lower hourly rate.
Schneiderman says that even if Alstate had qualified, the hourly wages were lower than the legal tipped minimum wage would have been.
Alstate also has agreed to implement reforms.