Hempstead laundry company agrees to pay $400G in back wages, union says

A Hempstead laundry company that serves nursing homes and hospitals has agreed to pay workers nearly $400,000 in owed backpay, according to the employees’ union.

Hempstead-based FDR Services Healthcare Laundry Specialists reached a settlement with workers following a five-year investigation by the state Department of Labor, union officials said.

Department of Labor officials told Newsday they cannot comment on open investigations.

The payments are owed under a state law governing so-called "spread of hours pay," which entitles minimum wage workers one extra hour of pay for shifts of more than 10 hours a day. The spread hours are owed for both consecutive and split shifts for minimum wage workers.

The union filed a complaint with the Department of Labor in 2021, which found that about 300 workers were affected, said Yadhira Alvarez, secretary-treasurer of the Laundry Distribution and Food Service Joint Board, Workers United SEIU.

Of the workers identified, 119 employees gave permission for the union to represent them with the state, Alvarez said. The union said those workers were owed $398,170.

FDR Services in Hempstead and their corporate office did not respond to multiple requests for comment. FDR Services officials sent a letter by the union, provided to Newsday, announcing payments for workers for a wage issue regarding "spread of hours" pay.

"This payment is being made as part of an agreement between FDR Services and the New York State Department of Labor," the company said in the letter. "Although FDR Services has at all times complied with the terms of the applicable collective bargaining agreement, the NYS DOL has maintained the position that the ‘spread of hours’ law also applies to our industry."

Negotiated payments

The payments were negotiated between the Department of Labor and FDR Services, the company said in the letter.

"While FDR Services respectfully disagrees with that interpretation, we decided to resolve the issue through an agreement so that the eligible employees could receive these payments without further delay," the letter states. "This agreement represents a business decision made to resolve the issue amicably, for the benefit of our employees with their best interests in mind."

Employees have protested wages and working conditions at the company for several years. An earlier dispute resulted in a $400,000 settlement reached in 2021 with the state attorney general, for the company to pay 10 employees who were fired and denied sick pay during the pandemic.

The National Labor Relations Board has filed multiple complaints against the company, which was previously required to pay backpay and fines for safety violations.

Last year, the New York City Council unanimously voted to condemn the company urging New York City healthcare organizations to work with other laundry companies "that respect workers' legal rights and adhere to area standards for wages and benefits."

Workers have been working without a contract for nearly a decade, leaving them vulnerable to exploitation and unpaid wages, she said.

"We want to make sure these workers receive payment. These workers are incredibly strong and do essential work and many worked through the pandemic for minimum wage," Alvarez said.

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.