BILL NUMBER: S4668
SPONSOR: RAMOS
 
TITLE OF BILL:
An act to amend the labor law, in relation to prevailing wage require-
ments applicable to public works and construction projects performed
under private contract
 
PURPOSE:
This legislation ensures that all public works construction projects
receiving state funding are subject to prevailing wage statutes.
 
SUMMARY OF PROVISIONS:
Section 1. Amends the definition of public works under subdivision 5 of
section 220 of labor law to include all fixed works constructed or
demolished by any public body funded by public funds. Public funds shall
incle any bonds, grants, loans, or any other state money.
Section 2. Amends the covered project definition in subdivision 1 and
paragraph a of subdivision 2 of section 224-a of the labor law, by
removing the thirty percent requirement.
Section 3. This act shall take effect immediately.
 
JUSTIFICATION:
New York's prevailing wage statute, which went into effect in January
2022, requires that all private projects over $5 million must pay
prevailing wages to their construction workforce if they receive 30%
public funding. This law applies to projects financed through state
grants but does not apply to any state loans, and developers have found
this loophole as a way to bypass wage requirements. Since this law went
into effect, many projects have received a significant amount of state
dollars that were not subject to any requirements simply because there
is a repayment requirement. For example, a recent project at 475 Bay
Street in Staten Island avoided prevailing wage requirements despite
receiving a first mortgage loan of $99,865,000 from the New York State
Housing Finance Agency and an annual subsidy from the New York Empire
State Supportive Housing Initiative. Construction workers on these
substantial projects, such as 475 Bay Street, should be subject to the
requirements under the prevailing wage law since taxpayer dollars still
cover costs. This legislation gets rid of the state loan loophole. It
ensures that all public works projects financed in whole or in part with
hinds made available by or through the State or any of its political
subdivisions must abide by the prevailing wage statute.
 
LEGISLATIVE HISTORY:
New Legislation
 
FISCAL IMPACT:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S4668: 220 labor law, 220(5) labor law