LI Laundry To Pay $400,000 To Workers It Illegally Fired

HEMPSTEAD, NY — An industrial laundry facility based in Hempstead will have to pay hundreds of thousands of dollars to employees it unlawfully fired for taking time off after contracting the coronavirus last year.

New York Attorney General Letitia James announced the agreement today between the government and FDR Services Corporation. James said that an investigation found that the company violated several state and federal laws when it fired seven people, and failed to give sick pay to 10.

Under the agreement, FDR Services Corp. will pay $400,000 to the 10 employees for sick leave compensation and emotional distress. The company will also rehire five employees who wish to return and give them the benefits they had before they were unlawfully fired.

“So many workers jeopardized their health and safety during the pandemic, and too many did so without proper protections from their employers,” said James. “These individuals were unlawfully fired for doing the right thing — protecting themselves and our communities during an unprecedented public health crisis. Let this serve as notice to all employers across New York: We will take action against any employer that puts our workers in harm’s way and do whatever is necessary to protect the safety and rights of our workers.”

According to James, her office began its investigation into FDR Services Corp. last spring, after the Laundry, Distribution, and Food Service Joint Board of the Workers United Union filed a complaint on behalf of the employees.

FDR Services Corp. was classified as an essential business because it cleaned dirty linens from healthcare workers and patients. Because there was a chance these linens were contaminated by COVID, the employees were constantly at risk of contracting the disease.

Seven employees of the company did contract COVID and stayed home to quarantine themselves, and even received orders of quarantine from their local health departments. When they returned to work after their quarantine, they were all fired and FDR Services Corp. refused to pay them for the time they were out sick. Three other employees also took sick leave for COVID, but were not fired.

“When I was an employee of FDR Laundry, I contracted COVID-19 during the pandemic, and went through all the appropriate channels to notify the company of my positive test,” said Roxanna Moreno, a former FDR employee. “When I returned from quarantine, the company fired me. At the time, I was pregnant, and I suffered many complications during my pregnancy due to the stress of unemployment, and the mistreatment by FDR Laundry. My co-workers and I should have never been fired for taking precautions during the pandemic, and I thank the Office of the Attorney General and our union for working to give us justice.”

On March 18, 2020, New York passed a COVID-19 sick pay law that required employers with 100 or more employees to provide at least 14 days of paid sick leave to any employee who was under mandatory quarantine. It also required employers to restore any employees who took COVID leave to their prior positions when they return, and prohibited employers from retaliating against employees for taking sick leave.

In addition to the $400,000 payment, FDR Services Corp must submit a report to the Attorney General's office twice a year for the next three years identifying any sick leave complaints and ensuring compliance with the agreement.

However, FDR Services Corp. denies the allegations, and says that the employees were fired with reason.

"FDR Services categorically denies the findings of the attorney general, who has totally mispresented the facts of this case," the company said in a statement to Patch. "The facts are that the employees in question did not provide FDR with positive COVID test results and their quarantine orders did not align with the dates of absenteeism. These employees were terminated because they did not show up for work nor did they properly call out sick. There were in fact many FDR employees who legitimately suffered from COVID and were granted and paid sick leave."