Cost of Painter Disallowed in Labor Cost Adjustment

LVT Number: 8767

Landlord applied for a labor cost adjustment (LCA) to increase the 1984-85 maximum rents of rent-controlled tenants. Landlord claimed there were 18 union employees at the building, including one painter. The DRA ruled for landlord, and tenants appealed. Tenants claimed the painter had been fired. The DHCR adjusted landlord's rent increase to disallow any LCA for a painter. In general, LCA increases are granted for payroll costs of building superintendent, janitor, handyman, elevator operator, doorman, and porter who are regularly employed throughout the year.

Landlord applied for a labor cost adjustment (LCA) to increase the 1984-85 maximum rents of rent-controlled tenants. Landlord claimed there were 18 union employees at the building, including one painter. The DRA ruled for landlord, and tenants appealed. Tenants claimed the painter had been fired. The DHCR adjusted landlord's rent increase to disallow any LCA for a painter. In general, LCA increases are granted for payroll costs of building superintendent, janitor, handyman, elevator operator, doorman, and porter who are regularly employed throughout the year. Employees hired for maintenance and repairs work, such as painters, generally aren't included. So, for purposes of calculating LCAs to the maximum rents, a painter isn't a building service employee. Also, in this case, the painter wasn't listed in landlord's 1982–83 LCA application, and was no longer employed at the building.

Eckhaus: DHCR Adm. Rev. Dckt. Nos. BD 420018-RT, BD 420088-RT, BD 420090-RT, BE 410026-RT (2/17/94) [5-page document]

Downloads

BD420018-RT.pdf300.76 KB