Prevailing wage in New York: a comprehensive guide

Posted by National Alliance for Fair Contracting on

Jacob Maslow
July 30, 2023

Prevailing wage is a crucial aspect of the construction industry in New York, as it ensures that workers receive fair compensation on public works projects. In essence, the prevailing wage is the pay contractors and subcontractors in New York must pay their employees when working on public works sites. This rate is higher than the standard minimum wage, based on hourly rates paid by unions to specific workers in a given market.

The New York State Department of Labor issues prevailing wage schedules for general and residential construction projects on a county-by-county basis. General construction rates apply to buildings, heavy and highway, tunnel, and water and sewer work. Contractors and subcontractors must adhere to these wage schedules to comply with state regulations.

Key Takeaways
Prevailing wage is critical in the New York construction industry, ensuring fair pay for workers on public works projects.
The New York State Department of Labor establishes wage schedules for general and residential construction on a county-by-county basis.
Contractors and subcontractors must adhere to these prevailing wage schedules to maintain compliance with state regulations.

Understanding Prevailing Wage
Article 8

In New York State, the prevailing hourly wage and usual benefits and overtime are paid to most workers, laborers, and mechanics within a given area. New York’s prevailing wage law is regulated under Article 8, which focuses on public construction projects. Prevailing wages are usually equivalent to the union wage. They can vary by location, as they are determined based on the average wages earned by professionals in similar roles in the area.

Article 8 of the New York State Labor Law ensures that contractors and subcontractors on public works projects pay their employees the appropriate prevailing wage, as established by the Department of Labor (DOL). These requirements apply to all parties involved in a public work contract, regardless of whether they have a direct contractual relationship with the public entity.

Public Work

Public work refers to any construction, maintenance, or improvement project funded and executed by a public entity, such as federal, state, or local government. These projects typically include building and renovating schools, hospitals, transportation infrastructure, and other public facilities. Regarding prevailing wages, contractors and subcontractors must know the specific rates applicable to their work locality and trade.

The New York State Department of Labor issues prevailing wage schedules for “General Construction Projects” and “Residential Construction Projects” on a county-by-county basis. General construction rates apply to buildings, heavy and highway construction, tunnels, water, and sewer. Employers with government contracts or foreign workers must pay their employees the prevailing wages to comply with the law and ensure fair compensation for their labor.

Understanding prevailing wage laws in New York, specifically under Article 8 and public work projects, is essential for contractors, subcontractors, and employees. Compliance with these laws protects workers’ rights and helps maintain a fair and competitive labor market.

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Assessing prevailing wage benefits to workers, contractors, and the NYC economy

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The Worker Institute of the ILR School at Cornell University
August 3, 2023

The Labor and Employment Law Program, the Buffalo Co-Lab and the Worker Institute of the ILR School at Cornell University are hosting the launch of a report exploring the cost of prevailing wage to New York City workers and contractors.

On January 1, 2022 an expansion of the prevailing wage law in New York City came into force. The new law significantly increases the universe of construction projects subject to prevailing wage requirements. Given the recent change in legislation, researchers at the Buffalo Co-Lab and the Worker Institute will present on research that explored the cost savings of workers covered by prevailing wages versus workers who are not, in four areas of construction work: laborer, carpenter, lather, and cement finisher. On the face of it, there does not appear to be a difference between union and nonunion wages and benefits in a project covered by prevailing wage. But this changes when the percent of the cost of benefits for a union worker is compared to a nonunion worker. This is, in fact, a defining factor and here the analysis will help us better understand the nature of this relationship between cost of wages and benefits for union versus nonunion workers. Researchers will also present a newly created tool that the public can use to determine the cost of a union versus nonunion contractor for future projects.

A panel discussion will follow the presentation of research with distinguished members of government, labor unions and the real estate industry to explore together the role prevailing wage projects play in and how the building industry can better work to protect the health and safety of construction workers while building more cost-efficient projects in New York City. This session will explore the future of prevailing wage projects, the need for enforcement and responsible contractors as stewards in New York City.

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What’s good for workers is good for Wyoming’s economy

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Bob Abbott
August 3, 2023

For project developers and construction contractors across Wyoming, opportunity is knocking.

At the federal level, the bi-partisan Infrastructure and Jobs Act, Inflation Reduction Act and Chips and Science Act are unleashing billions of dollars to support Wyoming energy, infrastructure, and advanced manufacturing.

Indeed, these investments are a big reason why the U.S. Bureau of Labor Statistics is projecting that between now and 2030 about 60% of new jobs in our nation’s economy won’t require a college degree. Many of them, in the skilled construction sector, will build and maintain these federally funded projects.

In short, the opportunities ahead cry out for investments that promote quality jobs and expanded career pathways into the skilled trades.

Yet for generations, Americans have told our kids that college — and the enormous student debt load that comes with it — was the preferred pathway to a middle-class life. State legislatures and courts alike mounted decades of attacks on workers’ rights, labor standards and the institutions that have long replenished our supply of skilled trade workers.

Wyoming has not been immune to these efforts — or their effects.

It is one of roughly two dozen states that have passed laws to weaken collective bargaining institutions. These so-called “right to work” laws are consistently linked to inferior job quality, safety and workforce development outcomes.

This summer, a new state law that restricts the use of pre-hire labor agreements on publicly funded construction projects went into effect — even though research finds these types of agreements lead to better economic and workforce outcomes.

Today, Wyoming has the highest per-capita rate of workplace fatalities in the nation, even as it faces a historically tight labor market.

The fact is that partnerships between employers and labor should not be perceived as a threat to the generational energy and broadband investments coming to Wyoming. They might just be key to their success.

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Biden administration investment tracker

Posted by National Alliance for Fair Contracting on

Will Ragland
Ryan Koronowski
June 15, 2023

The passage of the Inflation Reduction Act, the CHIPS and Science Act, and the Infrastructure Investment and Jobs Act—two of which received broad bipartisan support—unleashed an unprecedented level of public and private sector investments in America. These investments are rebuilding the country’s infrastructure, bolstering American manufacturing, and cementing U.S. leadership in critical new industries such as clean energy, electric vehicles, and much more. In total, these investments hold the promise of creating, supporting and reshoring millions of well-paying jobs.

This tool catalogs more than 35,000 of these investments that users can filter by category, state, congressional district, amount, and/or keyword. The tracker is a valuable and growing resource for anyone who wants to learn how these laws are being put to work in their counties, in their states, and across the country.

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Evidence of Worker Exploitation Stops Work at 110 Job Sites

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New Jersey Department of Labor & Workforce Development
FOR IMMEDIATE RELEASE
July 11, 2023

TRENTON – In the four years since Governor Murphy expanded the New Jersey Department of Labor and Workforce Development’s (NJDOL) powers in 2019 to halt work on job sites when there is strong evidence of worker exploitation, over 110 stop-work orders have been issued and more than $2.7 million in back wages owed to affected workers, liquidated damages, and penalties have been assessed.

In 2021, Governor Murphy further boosted these powers, permitting stop-work orders to be applied to all work sites of an employer found to be in violation of the law.

“Since the beginning of our Administration, we have been dedicated to respecting, defending, and upholding the rights of all New Jersey workers, who are the lifeblood of our economy,” said Governor Murphy. “These expanded powers have led to over a hundred stop-work orders in just the past few years, advancing our commitment to stronger and fairer worker protections.”

“Having the authority to shut down work as soon as wrongdoing is identified has exponentially strengthened the department’s effectiveness at enforcing our state’s wage and hour laws and protecting workers and law-abiding employers,” said Labor Commissioner Robert Asaro-Angelo. “We’ve made it clear: If we find you are cheating workers, we will halt your business operations, and in many cases, you will be told to leave the job by the general contractor or contracting authority.”

“A vast majority of New Jersey employers follow the law and do right by their workers, but NJDOL wants to ensure all businesses are following the law and treating workers fairly,” Asaro-Angelo added. “It’s not just about stopping the violations in progress. There is also an educational component to prevent these issues from happening in the first place.”

NJDOL’s Division of Wage and Hour and Contract Compliance has the authority to immediately halt work at any public or private worksite – both construction and non-construction – when an investigation finds evidence an employer has violated state wage, benefit or tax laws. Examples include: misclassifying employees as independent contractors; not having appropriate workers’ compensation insurance; failing to pay prevailing wage or overtime; or paying workers partially, late, or off the books.

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NABTU’s Sean McGarvey shares vision of boosting middle class with new jobs created by the Infrastructure Act

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Sheri Gassaway
July 10, 2023

North American Building Trades Unions (NABTU) President Sean McGarvey stopped in St. Louis last week to share how the organization is working with local and state building trades leaders, community groups and government officials to help boost the middle-class and create good-paying jobs after passage of the Infrastructure Investment and Jobs Act.

The event, hosted by the Missouri Works Initiative, Missouri AFL-CIO and St. Louis Building and Construction Trades Council, was a part of NABTU’s national multi-city road tour to demonstrate how union-trained workers are prepared to meet the moment. The event was held at the Sheet Metal Workers Local 36 union hall in St. Louis and included a tour of the union’s state-of-the-art training center.

“There’s over 250,000 people in our training programs and we can ramp that up to one million,” Garvey said. “With the investments made by the Biden-Harris Administration and members of Congress, we’re going to start filling those numbers up and growing these training programs through our apprentice-ready programs like BUD and creating pathways to the middle-class for everyone who wants an opportunity.”

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Denver wage theft unit sees rise in cases, especially in migrant community

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Karen Morfitt
July 8, 2023

Having worked in the construction industry for several years, Edgar Jauregui has met a lot of people and heard a lot of stories.

“They are willing to walk from their country all the way over here. You can tell they are going to do whatever it takes to change their lives,” he said.

As a representative for the Southwest Mountain States Regional Council of Carpenters, which represents about 55,000 workers, he’s also become an advocate for the immigrant community.

Recently, their concerns have centered largely around wage theft.

“They don’t get paid overtime after 40 hours and some other ones, they just don’t get paid at all. And they keep working because they have a promise that they are going to be paid for the next week,” Jauregui said.

Wage theft is the illegal practice of underpaying or not paying workers or providing benefits laid out in a contract or required by law.

In Denver complaints can be made both to the City Auditor’s Office and the Denver City Attorney’s office, where Brian Snow is an investigator.

“It’s definitely on the increase,” he told CBS News Colorado. “Our migrant population is disproportionately impacted by this,” he said.

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Attorney general Ellison forms task force on worker misclassification

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The Office of Minnesota Attorney General Keith Ellison
July 6, 2023

Minnesota Attorney General Keith Ellison announced today that he is forming a new Advisory Task Force on Worker Misclassification. He is soliciting applications to serve on the Task Force through the State of Minnesota Open Appointments process. Applications are being accepted now through August 2, 2023.

“Misclassifying workers hurts not only those who are misclassified and their families, it hurts all Minnesotans, including businesses who do the right thing by their employees by playing by the rules, and every Minnesota taxpayer who has to make up the slack for law breaking employers,” Attorney General Ellison said. “I’ve created this task force to gather the best thinking about the problem and make practical, workable recommendations to the Legislature, State agencies, other levels of government, industry, nonprofit organizations, and advocates about how we can put an end to the problem. It’s another way we can help create a more level playing field and a fairer economy, which helps all Minnesotans better afford their lives and live with dignity, safety, and respect.”

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New RI law will make wage theft a felony

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Sarah Guernelli
June 27, 2023

Rhode Island is cracking down on wage theft.

Gov. Dan McKee recently signed a new law that will change wage theft from a misdemeanor crime to a felony starting next year.

Rep. David Morales helped champion the change.

“No longer will an unethical employer who withholds wages from their workers be met with a slap of a wrist of just a misdemeanor,” Morales said.

Under the new law, employers that knowingly and willfully fail to pay an employee more than $1,500 in wages could face up to three years in prison and pay fines.

“If you commit wage theft you are going to be held accountable,” he said.

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Department of Labor to hold online seminars to educate current, prospective federal contractors on prevailing wage requirements

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Edwin Nieves
June 14, 2023

The U.S. Department of Labor announced today that its Wage and Hour Division will offer online seminars for contracting agencies, contractors, unions, workers and other stakeholders on the requirements for paying prevailing wages on federally funded construction and service contracts.

Part of the division’s effort to increase awareness and improve compliance, the seminars will include recorded training videos on a variety of Davis-Bacon Act and Service Contract Act topics that participants can view on-demand. The division will then offer live Q&A sessions to provide additional information.

Q&A sessions on compliance issues will be offered as follows:

Davis-Bacon Act: June 27 and Sept. 13.
Service Contract Act: June 28 and Sept. 14.

“Prevailing wage laws are key to ensuring that construction and service jobs are good jobs and that workers on federally funded projects across the country are paid fair wages and benefits,” said Principal Deputy Wage and Hour Administrator Jessica Looman. “Recent investments in our nation’s infrastructure offer us a great opportunity to educate employers so they can compete for new federal contract opportunities and put skilled employees to work in their communities.”

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