On June 8, 2026, a federal court in New York signed an order (“Order”) blocking New York’s new prevailing wage law for off-site fabrication, N.Y. Labor Law § 220(3)(f) (“Amendment”) from taking effect. Hinckley Allen is proud to represent the Associated General Contractors of New York State and a broad coalition of business and construction industry groups in challenging the law as unauthorized and unconstitutional. The Order is a critical first step in stopping the Amendment while the parties brief preliminary issues in the case.
Background
If you had June 18, 2026, marked on your calendar with a big red “X,” you are not alone. That is the day the Amendment was set to take effect and to extend New York State’s prevailing wage law framework, for the very first time, to off-site fabrication facilities that manufacture custom products not just for one specific public project, but for many public and private projects across the State and beyond.
The Amendment requires fabricators furnishing products to qualified public projects to register as subcontractors with the State; pay the prevailing wage of the county where the project sits, regardless of where the fabrication occurs or how many different projects the fabricator is supplying; and submit certified payrolls. The Amendment also imposes strict reporting obligations on general contractors and makes them liable for prevailing wage compliance by every fabricator they purchase products from for use on a public project.
From the perspective of most public owners, contractors, subcontractors, and fabricators, the Amendment is profoundly misguided and unworkable. It is unclear what categories, industries, or products are covered; how anyone can track who touched what and for how long on the factory floor; how the Amendment can override existing collective bargaining agreements; how fabricators in other states or countries can be required to pay New York prevailing wages; or what the industry is supposed to do when they cannot deliver or secure the components New York needs to build its public infrastructure, to name just a few concerns.
These issues were the genesis of the lawsuit and application for a preliminary injunction filed by Hinckley Allen on behalf of the Associated General Contractors of New York State and a broad coalition of business and construction industry groups on May 28, 2026, seeking to stop the Amendment from taking effect. On June 8, 2026, a federal court did exactly that, signing an agreed-upon consent order that pauses and suspends the Amendment until the Court can rule on the parties’ initial motions, set to be fully briefed by August 25, 2026.
What the Temporary Order Means for Contractors, Fabricators, and Public Owners
The Order provides those in the construction industry and fabricators with at least several months of respite and certainty while the legal challenge proceeds. During that period, no contractor, fabricator, or owner is required to comply with the Amendment, and the New York State Department of Labor (“NYS DOL”) cannot enforce it. That means public letting will proceed as usual, without owners being forced to build the requirements of the Amendment into their contracts, general contractors being responsible for prevailing wage compliance of their fabricators, or off-site fabricators paying prevailing wages and submitting certified payrolls.
The Order is a good first step that provides critical breathing room for industry participants who face an impossible choice of attempting to comply with an unworkable law, exiting the New York public works market, or risking criminal and civil penalties for noncompliance. It is important to note, however, that the State agreed to the Order and the Court has not yet ruled on the merits of the legal challenge. The case will continue in federal court in the months ahead, as the coalition seeks to have the law permanently stricken as unauthorized and unconstitutional.
We will keep the industry updated on case developments as they occur. In the interim, if you have questions about the effect of the Order, how the Amendment could impact your operations if it goes into effect, or any other implications of the law or the lawsuit, please do not hesitate to contact a member of our team.
This alert is for informational purposes only and does not constitute legal advice. The outcome of the pending litigation remains to be determined and is not guaranteed.
This information is provided for educational purposes only. It should not be construed or relied on as legal advice. It is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication or other legal counsel.