County Contractor Blocked Audit, Lied For Benefits: Comptroller

According to the Nassau County Comptroller, an audit of the county's concessions vendor revealed violations of the county's Living Wage Law, as well as incorrect information submitted to the county to obtain Living Wage waivers. In addition, the company did not fingerprint employees as contractually required, posing a potential risk to residents.

The report, released by Comptroller George Maragos, said that Dover Gourmet Corporation, a Freeport-based company, obstructed the audit process by failing to cooperate with representatives from the comptroller's office. The company repeatedly promised to provide information to the auditors, yet failed to provide records.

A previous audit of this vendor, released on December 12, 2016, found possible financial violations with money owed to the County. This audit will be forwarded to both the District Attorney and the County Attorney, as was the case with the previous audit.

"The lack of cooperation with an audit heightens suspicion of impropriety," said Maragos. "At this point, the appropriate next step would be to refer the findings to the county attorney."

Nassau County has two licensing agreements with Dover, granting the company exclusive rights to provide catering, concession and vending machine services at multiple county parks, recreation facilities and at various county office buildings.

According to the audit, Dover may have failed to comply with its agreements and with the Living Wage Law by failing to disclose material changes required through updates of its Certification of Compliance. Dover did not disclose that the Attorney General’s Labor Bureau had started an investigation of Dover Hospitality in Suffolk in 2013 related to payroll deductions, which resulted in Dover agreeing to an Assurance of Discontinuance in 2015.

Additionally, Dover failed to identify employees who worked on county property, including recreational facilities used by young residents, which prevented the auditors from verifying compliance with agreements and local law regarding employee fingerprinting.

The county granted Dover a Living Wage Law waiver for 2014 after the company filed an application with the county for the waiver using inaccurate wages to calculate their eligibility ratio, which the county relied on when granting the waiver. Dover’s 2015 Living Wage waiver renewal and any subsequent renewals based on the 2014 Living Wage waiver should not have been granted.

The Nassau County Living Wage Law was enacted by the Nassau County Legislature in 2006 to raise the minimum wage of employees working for the county or the county’s contractors. The comptroller’s office is responsible for monitoring compliance with the law. The Living Wage is currently $13.98 per hour for employees receiving health benefits, or $16.07 per hour for employees who do not receive health benefits.

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