Hamptons Contractor Indicted After Failing To Pay Prevailing Wage: DA

SOUTHAMPTON, NY — A Southampton contractor was indicted Friday after he was accused of not paying the prevailing wage to his employees, Suffolk County District Attorney Ray Tierney said.

Robert Terry, 65, was indicted on charges including willful failure to pay the prevailing wage rate, after reportedly misclassifying his employees’ work categories on certified payrolls, resulting in a about $83,694 in underpayments, the DA said.

According to the investigation, between March and August 2018, Terry was a contractor at the Davis Park Marina Improvement project, a public works contract that required the contractor to pay his employees the proper prevailing wage rate, based on the tasks that they performed on the project, Tierney said.

Additionally, he was responsible for completing certified payrolls that affirmed he paid his employees the proper prevailing wages while they worked on the project, the DA said.

Instead, Terry is accused of classifying his employees under the wage rate for "laborers," which is lower than the wage rate for "dock builders," though the employees were performing tasks necessitating the higher salary rate, Tierney said.

And, even though additional employees of Terry Contracting & Materials, Inc. worked as crane operators on the project, they were reportedly unlawfully omitted from the certified payrolls, the DA said.

After an investigation, the New York State Department of Labor determined that Terry and his
company owed the employees more than $80,000 for failing to pay them as dock builders, Tierney said.

On Friday, Terry and his corporation, Terry Contracting & Materials, Inc. were arraigned on the indictment before Supreme Court Justice Timothy P. Mazzei on charges including one count of
willful failure to pay the prevailing wage rate and supplement, and first-degree falsifying a business record, both Class E felonies; and second-degree falsifying a business record, a
Class A misdemeanor, Tierney said.

Justice Mazzei ordered Terry to be released on his own recognizance because his charges are
considered non-bail eligible under current New York State law, Tierney said.

Terry is due back in court on January 23, 2025, and faces 1 1/3 to 4 years in prison if convicted on the top count, the DA said.

He is represented by Michael Cornacchia; Cornacchia could not immediately be reached for comment.

"This defendant allegedly pocketed money that would have gone to his workers and their families," Tierney said. "We will not allow unscrupulous business owners to enrich themselves by cheating workers out of their legally mandated wages on taxpayer-funded projects."