BJA Renovations Corp., a Long Island-based asbestos removal and demolition company, along with its top executives, admitted to underpaying workers on public school projects and falsifying payroll records, resulting in significant criminal charges.

The company, located in North Babylon, and its manager, Joseph Demasco, 67, pleaded guilty in Nassau County Court on March 14 to failing to pay over $80,000 in required wages. These wages were owed to workers for labor performed on public school projects in the Merrick and Oceanside Union Free School Districts between 2019 and 2021.

BJA Renovations was involved in subcontracting for several public school projects, including the Birch School, Chatterton School, and Levy Lakeside School in Merrick in 2019, and Oceanside High School in 2021. According to the Nassau County District Attorney's office, the company falsified certified payroll records, falsely reporting that workers were being paid between $37 and $44 per hour, when in reality they were paid only $35 per hour in cash, with some workers also receiving supplemental checks.

Under New York State prevailing wage laws, the workers should have been paid as much as $74.70 per hour, including benefits. The company and its president, Nicholas Barnett, also admitted to falsifying unemployment insurance records, underreporting the wages paid to employees, and defrauding the state’s unemployment fund out of over $60,000.

In addition to repaying $81,592 in stolen wages, BJA Renovations and its leadership have agreed to pay $63,036 to cover the unemployment fraud. Demasco, who was responsible for delivering the weekly payrolls, faces sentencing in May and could receive up to three years in prison. However, if he pays $25,000 in restitution before sentencing, his punishment will be reduced to six months in jail and five years of probation. Barnett pleaded guilty to misdemeanor labor law violations and is expected to serve three years of probation.

Vice president Dana Petrizzo also pleaded guilty to disorderly conduct and received a conditional discharge.

In accordance with state law, BJA Renovations and its executives are prohibited from working on public projects for the next five years.

Nassau County District Attorney Anne Donnelly emphasized the seriousness of the case, stating, "We do not tolerate companies that exploit their employees or deceive the public. These very employees showed up day in and day out, putting their health and safety at risk, only to be denied the wages and benefits they were entitled to.”

The New York State Department of Labor played a crucial role in investigating the case, uncovering both the wage theft and the unemployment fraud.

Labor Commissioner Roberta Reardon commented, “New York State has zero tolerance for those who cheat the Unemployment Insurance system or shortchange their workers.”

BJA Renovations and its executives were arrested in June 2024 following the investigation.

This case serves as a reminder of the importance of upholding prevailing wage laws and ensuring that workers are fairly compensated for their labor. The public school projects affected by the wage theft were critical to improving education infrastructure, and the workers who contributed their time and effort were entitled to proper compensation. This case also highlights the role of state agencies, such as the New York State Department of Labor, in preventing fraud and enforcing labor rights.

Wage theft and fraud schemes are a significant concern in the construction industry, where workers are often at risk of being exploited. State and local governments, along with unions and advocacy organizations, continue to work together to monitor and address these issues, ensuring that construction workers receive fair pay and are protected from such practices.

The penalties faced by BJA Renovations and its executives serve as a warning to other companies in the construction sector, reinforcing the need for transparency and compliance with labor laws, especially when it comes to paying workers on public contracts. The five-year ban from working on public projects is a direct consequence of their actions and will affect the company's future opportunities in the construction sector.

Originally reported by Michael Mashburn in MSN News.