New York Expands Application of Prevailing Wage Requirements

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On January 1, 2022, an amendment to the State of New York prevailing wage took effect, expanding the number of construction projects subject to prevailing wage requirements. A vital component of the law is that it broadens the definition of construction projects, therefore increasing the number of projects for which the law applies. Additionally, the law imposes new compliance obligations regarding prevailing wage.

Previously, a project was regarded as a prevailing wage job only if a public entity was a party to a construction project and benefited the public. Now prevailing wages must apply to work done under a contract where the amount of all public funds, when aggregated, exceeds thirty percent of the total construction project costs and where total costs exceed $5 million.

There are also new compliance obligations such as certifying that prevailing wages are required on the project, retention of payroll records after completion of the project, and compliance with the objectives and goals of the Minority- and Women-Owned Business Enterprises program and the Service-Disabled Veteran-Owned Businesses program.

To ensure compliance, all construction project parties should determine if they are subject to the new prevailing wage requirements based on the parameters established by the new law.