By T. D. Thornton
The New York State Gaming Commission (NYSGC) and Steve Asmussen have entered into a negotiated agreement that will “adjourn” twice-postponed hearings that were supposed to have examined the Hall-of-Fame conditioner's fitness for owner and trainer licensure after the NYSGC raised concerns regarding Asmussen's pay practices involving backstretch workers.
In exchange for the hearing being taken off the NYSGC's docket, the agency explained in a Nov. 12 press release, Asmussen must engage and pay for an independent monitor approved by the NYSGC who will provide quarterly written reports to the NYSGC concerning whether Asmussen's racing stable is in compliance with federal and New York labor laws.
Back in June, the NYSGC first announced its intent to hold a licensure hearing over Asmussen's pay practices only days after the United States Department of Labor obtained a court order requiring Asmussen to pay $243,260 in back wages and an equal amount in liquidated damages, for a total of $486,520. The federal investigation had found that Asmussen had denied overtime wages to 163 grooms and hotwalkers at Churchill Downs and Keeneland Race Course.
As TDN's Bill Finley reported on June 13, the fact that the NYSGC was even seeking a hearing was notable because, “While Asmussen has had persistent problems with the Department of Labor, this is first time that any gaming or racing commission has looked into the matter and threatened revocation of Asmussen's license.”
Asmussen, with 10,697 training victories, is the winningest Thoroughbred conditioner in North American history. His outfit has multiple divisions nationwide, but out of 2,036 starts so far this year, only 47 of them occurred in New York.
“Courts have determined Thoroughbred Trainer Steven M. Asmussen's stable engaged in 'willful' violations of such labor laws, causing the Commission to question whether Mr. Asmussen should continue to participate in New York racing…” NYSGC chair Brian O'Dwyer stated in Tuesday's press release, which was issued by the agency after BloodHorse first reported that Asmussen's Nov. 13 hearing was “indefinitely postponed.”
O'Dwyer added that, “Just as the Gaming Commission is concerned with the welfare of racehorses, riders and drivers, we are concerned with the wellbeing of the dedicated backstretch workers who make the sport possible. These individuals must be fairly compensated, and all licensed trainers must abide by labor laws.”
A text message sent Tuesday to Asmussen seeking comment on the agreement yielded no reply.
TDN then emailed Asmussen's attorney, Clark Brewster, who responded to the request for comment with the following statement:
“After submissions to the NYSGC and discussions the matter has been resolved in favor of invited transparency, including the option for the NYSGC to review and monitor the payroll and wage-and-hour compliance actions implemented by Mr. Asmussen over the past few years to meet the record keeping mandates of the Department of Labor. We appreciate the concerns of the NYSGC and understand that through these efforts the entire industry may benefit from decisional law and the measures taken by the Asmussen stables to reach compliance.”
The hearing notice issued in June stated that the NYSGC sought to investigate 1) Asmussen's financial responsibility, experience, character and general fitness; 2) Whether or not Asmussen is financially irresponsible; 3) Whether or not Asmussen has been guilty of or attempted any fraud or misrepresentation in connection with racing; 4) Whether or not Asmussen has violated or attempted to violate any law with respect to racing; 5) Whether or not Asmussen has engaged in one or more improper, corrupt or fraudulent acts or practices.
Under the terms of the agreement, Asmussen must “make relevant books, records, and information available for the monitor's inspection” for the next two years.
According to the agreement (which can be read in its entirety here), the monitor will be looking for whether Asmussen is in compliance with “federal and New York labor laws that concern wage-and-hour requirements, recordkeeping requirements with respect to wage-and-hour laws, prevailing-wage requirements for non-immigrant workers, reimbursement requirements for non-immigrant workers, and associated recordkeeping requirements pertaining to non-immigrant workers.”
The monitor will have the power to give written notice to Asmussen if any alleged violations are uncovered, and can suggest “corrective action.”
Asmussen will have 30 days after the issuance of any non-compliance notice to correct the conditions set forth in the monitor's notice. Should he fail to correct the conditions set forth in the monitor's notice, then the monitor shall promptly inform the NYSGC.
By Dec. 31, 2026, if the commission decides, based on the reports, that Asmussen has been in “substantial compliance” with the relevant labor laws, the NYSGC “shall discontinue” the matter, the agreement stated. If the commission believes that compliance has not occurred, the matter will remain open and the hearing that got put off will be rescheduled.
“Should there be non-compliance with labor laws, or the Commission becomes aware of further violations, we reserve the right to take further action concerning Mr. Asmussen's license,” O'Dwyer stated, adding that, “All trainers should take note and operate accordingly: New York State takes labor laws very seriously.”
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