Investigation of the New York State Division of Human Rights Use of Temporary Employees

The Inspector General received a complaint alleging that the New York State Division of Human Rights had hired temporary employees from two employment agencies in violation of state contracting rules. Specifically, the complaint alleged that two DHR employees, Edward Watkins, former director of federal programs, and Stephen Rolandi, former director of finance and administration, agreed to pay Kelly Services Inc. and Penda Aiken Inc. at hourly rates significantly greater than those authorized by the state contract for temporary personnel and that the employment agencies billed DHR at those higher rates. The complaint further alleged that after the state centralized contract expired in November 2012, the Division of Human Rights retained the temporary employees from Penda Aiken Inc. and Kelly Services Inc. without a formal contract, for job titles and at billing rates that were not authorized by the state centralized contract maintained by the New York State Office of General Services through which state agencies can purchase goods and services at pre-approved terms and rates.