Vandee v. Suit-Kote Corp.
This case involves a class action brought by employees (plaintiffs) against Suit-Kote Corporation (defendant) for allegedly failing to pay prevailing supplemental benefits on public works contracts. The core dispute is whether the defendant’s practice of depositing the shortfall in benefits into a pooled ERISA trust, which also covers non-prevailing wage workers, satisfies the requirements of Labor Law § 220. The Appellate Division, Fourth Department, modified the lower court's decision, ruling in favor of the plaintiffs. The court concluded that the payment into the pooled trust, when diluted by benefits for non-prevailing wage workers, does not fulfill the statutory obligation, emphasizing that individual prevailing wage workers must receive the full value of their supplemental benefits. Consequently, the breach of contract cause of action was reinstated.