Construction Zone in Manhattan, New York. Photo: Ryland West/ALM

New York's attorney general reported a $1.5 million settlement Monday with a Long Island construction company after her office found the business engaged in sexual harassment and retaliation against workers.

The settlement centered on the Trade Off construction company. The Attorney General's Office concluded the company maintained a hostile work environment where female employees were subjected to vulgar comments from male workers and the solicitation of sexual favors by supervisors, according to an assurance of discontinuance.

The office found the construction company failed to "adequately investigate" complaints and retaliated against employees who complained about harassment, including firing multiple workers.

"Every employee in the state of New York has the right to feel safe and protected in the workplace, yet these women endured retaliation, harassment, discrimination and intimidation," James said at a Monday press conference.

The company fired at least 12 women after they complained about sexual harassment, "some within a matter of days after making their complaints," according to the assurance of discontinuance. The investigation found that at least seven separate supervisors harassed female employees, according to the document. 

Women received "quid pro quo" offers from supervisors to increase their pay in exchange for sex and at least two supervisors sent images of their penises to female employees, according to the document. One sent footage of himself masturbating, it said.

Workers also exposed their penises to female employees, regularly tried to touch co-workers' breasts at work and made vulgar comments, according to the assurance of discontinuance.

The office interviewed more than 25 current and former employees for the company during the investigation, according to the document.

James said her office will have discretion over the $1.5 million from Trade Off and she reported the office plans to distribute most of the funds to workers who participated in an investigation. A portion will be initially held for other workers who may come forward following the announcement, she said.

"In addition to the monetary compensation, Trade Off has agreed to employ an outside monitor with a three-year monitoring agreement," she said. 

The company will be required to create a new sexual harassment policy, she said.

"This marks our office's first agreement regarding sexual harassment in the construction industry, which has a purported history of sexual misconduct and gender discrimination in its workforce," she said at the press conference. "This is our first, but this will not be our last."

Trade Off could not be reached by telephone for comment on Monday.

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