Trainers defend their pay scales for workers
Several say backstretch workers treated fairly

By CLAIRE NOVAK, Special to the Times Union
First published: Saturday, August 30, 2008

SARATOGA SPRINGS — New York horsemen were still reeling Friday, three days after the state Labor Department announced it had found "widespread violations of labor law" on the Saratoga Race Course backstretch, including allegations that trainers were not paying minimum wage or overtime to employees.
Several trainers, including current Saratoga meet leader Kiaran McLaughlin and top New York conditioner Gary Contessa, attended a meeting of the New York Thoroughbred Horsemen's Association to discuss the steps to be taken following the issuance of 77 separate notices of violation by the Labor Department.

Trainers found to have violated hourly wage standards were ordered by the state to begin documenting hourly payments and to stop simply paying salaries to the workers. Those paying bi-weekly were required to issue weekly paychecks.

Joe Morrissey, a spokesman for the Labor Department, said the judgments were a civil matter but could escalate to criminal prosecution with misdemeanor charges for trainers who did not comply.

More than 1,200 people work on the Saratoga backstretch. State Labor Commissioner M. Patricia Smith on Tuesday alleged that 80 percent of the 110 backstretch workers who were interviewed by investigators were underpaid. Some, according to the Labor Department, said they were paid as little as $5.06 per hour — more than $2 an hour below minimum wage — and did not get overtime.

McLaughlin said his stable workers are adequately compensated. Contessa said he was cited for failure to adequately document his workers' hours, and trainer Todd Pletcher said the same.

"My groom (taking care of) four horses gets $500 per week plus 1 percent of the horse's earnings," McLaughlin said. "I have a great staff and they're well-looked after, well within the minimum wage guidelines. Most of (the trainers at) Saratoga are top horsemen who pay well."

"All of our grooms get 1 percent commission of earnings — first, second, and third — which, in some cases, is quite substantial," Pletcher said. "The conditions may not be great, but they're pretty happy compared to what their alternatives were in Mexico or wherever. I don't think people understand, but I can tell you one thing about the backside — there is a job here for everyone. If you're not happy here, I can guarantee you any one of these guys can walk right over there (to the next barn) and find a job. Obviously, the thing we want to do (in this situation) is be in compliance with any rules."

McLaughlin pointed to programs such as the backstretch insurance provided by the non-profit Backstretch Employee Service Team, free dental and eye care, and the "Anna House" childcare system in place at Belmont Park.

"They opt to live on the track," he said. "They could live off the track and have a mortgage payment or pay rent, but they choose to live on the track. It's not such a bad situation; they choose to live the way they live, that's their choice. ..."

McLaughlin said he puts out $750 per person annually in visa application fees to make sure his employees are in compliance with immigration laws.

Contessa said he also feels his employees are fairly compensated.

"I don't know what other people do, but I try to keep my people well-paid and I spread the wealth pretty good. The potential for disaster here is if a trainer didn't keep hours and an employee says, 'I worked 90 hours,' and you don't have proof that he didn't, that's a potential for disaster."

According to the Labor Department, 88 of the 110 employees interviewed are collectively owed approximately $7,000.

Morrissey said the department expected to continue its investigation, and would not identify the trainers alleged to be in violation until its work is finished. The department plans to bill individual trainers for back wages.

Trainers can choose between paying or appealing to the state Industrial Board of Appeals.

The Labor Department plans to host seminars on labor laws at Belmont Park. In addition, the department has distributed among horsemen information on minimum wage and overtime requirements.

The horsemen interviewed Friday seemed eager to see the issues get resolved and maintained their employees are treated fairly.

"Nobody really knows what the end result of this will be, but the bottom line is, they cited me because I didn't keep the actual hours written down," Contessa said. "They asked me to get my hours straight, they said they were relatively happy with what I paid and everything, they just wanted me to log my hours better, so I did. ... I'm gonna do whatever they ask me to do."

"I'm sure once we get the system down, there won't be any problems," trainer Bill Mott said. "I hope this can be considered a wake-up call, but nobody I know was trying to do anything wrong."