New York State Prevailing Wage and Public Works Regulations

New York's Public Works Regulations

In New York, public works regulations are governed by both state and federal laws. These regulations are critical for contractors and subcontractors working on public construction projects funded with state or local funds and federal funds.

• State Law: New York Labor Law, Article 8 (Construction), and Article 9 (Building Services) apply to state and local public works projects.
• Federal Law: The Davis-Bacon Act (DBA) applies to public works projects that receive federal funding.

New York has its own "Little Davis-Bacon Act," which imposes prevailing wage requirements on state and local projects similar to federal Davis-Bacon requirements.

Definition of "Public Works" in New York

Under New York State law, "public works" refers to construction, reconstruction, demolition, or maintenance projects paid for, wholly or partially, by public funds. Examples include infrastructure projects such as roads, bridges, schools, and government buildings.

New York courts have interpreted public works as projects primarily intended to benefit the public rather than private parties.

Prevailing Wage Determinations: Federal (Davis-Bacon) and State-Specific Requirements

Federal Davis-Bacon Act (DBA)

The Davis-Bacon Act applies to federally funded public works projects in New York. Under the DBA, contractors and subcontractors must pay workers at least the locally prevailing wages (including fringe benefits) for similar work in that area. The U.S. Department of Labor is responsible for determining these wage rates.

New York State-Specific Requirements

New York's prevailing wage law applies to all state-funded public works projects, regardless of the project size. Essential aspects of the law include:

• Wage Rates: The New York State Department of Labor (NYSDOL) determines prevailing wage rates through surveys and labor agreements.
• Scope: Prevailing wage laws apply to construction and building service workers (e.g., janitors and security guards).
• Local Jurisdiction: Besides state requirements, local jurisdictions may impose additional wage and benefit requirements.
• Annual Updates: NYSDOL updates prevailing wage rates annually, effective July 1 each year.

Components of Wage Determinations

Both federal and state prevailing wage determinations in New York include:

• Basic Hourly Rate: The minimum wage paid to workers based on their job classification.
• Fringe Benefits: Additional non-wage compensation such as health insurance, pension contributions, and paid leave.
• Total Hourly Rate: The sum of the basic hourly rate and fringe benefits. If a contractor does not provide fringe benefits, the entire amount must be paid as wages.

For instance, if the basic hourly rate is $35 and fringe benefits total $10, the worker must receive $45 per hour either as a combination of wages and benefits or entirely as wages.

Compliance for Contractors and Subcontractors

Contractors and subcontractors working on public works projects in New York must:

• Determine Applicable Wage Rates: Use the U.S. Department of Labor's SAM.gov portal for federal projects and the NYSDOL's website for state and local projects.
• Submit Certified Payroll: Contractors must submit certified payroll records for all workers to either the federal government (for DBA projects) or the contracting agency (for New York projects).
• Fringe Benefits: Ensure workers receive the appropriate fringe benefits or equivalent cash compensation.
• Post-Wage Rates On-Site: Display the current prevailing wage rates in a conspicuous location at the job site.
• Recordkeeping: Maintain payroll records for at least six years after the project completion.

Penalties for Non-Compliance

New York imposes severe penalties for contractors that fail to comply with prevailing wage laws, including:

• Payment of Back Wages: Contractors must pay the difference between wages paid and the prevailing wage rate.
• Fines: Contractors may be fined up to 25% of underpaid wages.
• Debarment: Repeat offenders can be barred from bidding on public works projects for up to five years.
• Criminal Charges: Contractors may face criminal charges in cases of willful violation.

Unique Aspects of New York's Prevailing Wage System

• Broad Scope: Unlike some states, New York's previous wage law covers many public works, including building service contracts.
• Prevailing Wage Supplements: New York allows contractors to use "supplements" (e.g., "lth insurance, retirement) as part of the total wage determination.
• Local Laws: Some cities and counties, such as New York City, may impose additional wage and benefit requirements beyond state law.
• Debarment and Criminal Penalties: New York enforces stringent penalties for non-compliance, including potential criminal charges for willful violators.

Relevant Resources

• U.S. Department of Labor Wage Determinations Online (WDOL)
• New York State Department of Labor (NYSDOL) Prevailing Wage Page
• New York Labor Law, Articles 8 and 9:
• Annual Wage Survey Forms

For the latest information and to ensure compliance, always refer to the NYSDOL website and seek legal advice from professionals familiar with New York labor laws.