Our condominium client was terminating its building services contract and hiring a new building services company. The client asked if the Displaced Building Service Workers Act would apply to require it to retain employees from the terminated building services company.

The Displaced Building Service Workers Act provides that not less than 15 days before terminating any building services contract the coop or condo is required to request that the former building service contractor provide a list containing the name, address, date of hire and employment classification of each building service employee at the covered building. The list is to be provided with 72 hours of receipt of request. At the same time, the former building service contractor shall post the list in a notice to the building service employees that sets forth the rights provided by this Act.

The coop or condo is required to retain the services of those building service employees covered by the terminated contract for a 90-day transition period.

At the end of the 90-day transition period the coop/condo has to give an employment evaluation to each covered employee and if the employee’s performance is satisfactory it needs to offer such employee continued employment.

The coop/condo also has to provide the same list of employees in a notice to the successor building services company not less than 15 days before entering into a building services contract and the successor company shall retain those building service employees. If fewer employees are needed, they shall be retained in order of seniority. Similar 90-day transition period of offer of continued employment upon satisfactory performance evaluation.

The Displaced Building Services Workers act would apply unless the employees are covered by a Union.

It applies to any building service employee who was employed at the building on a full time or part time basis for at least 90 days prior to the transition. Exempt are managerial or supervisory employees and persons earning more than $35/hour.

It applies to residential condominiums of more than 50 units.

Remedies:

The building service employee who has not been retained in accordance with this Act has the right to bring an action in Supreme Court, to seek reinstatement to his job and an award of back pay and an equal amount as liquidated damages based on the average rate of pay for the past three years, plus cost of benefits, plus attorneys’ fees.