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New York Law Mandates Prevailing Wage for Private Construction

Private construction projects in New York will become subject to new prevailing wage requirements based on legislation signed by Governor Andrew Cuomo on April 3. The provisions will take effect in January 2022.

The legislation applies to projects with construction costs of more than $5 million and that receive at least 30% of financing from “public funds.”

Some projects will be exempted, such as projects already covered by collective bargaining agreements, those covered by project labor agreements, small residential or school construction, affordable housing projects and “brownfields” environmental remediation programs.

Records Retention

The law creates new compliance and recordkeeping requirements for construction projects in New York. The impact will depend in large part on the regulations promulgated by the Labor Commissioner and the recommendations of the new Public Subsidy Board.

Owners and developers of covered projects are required to retain original payroll records for six years.

Next Steps

HR Works will continue to monitor this topic and communicate any additional guidance as it becomes available from the state.

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.