New York State Labor Law requires contractors performing work on public construction projects in the State to pay prevailing wages and supplements to designated classifications of workers. Typically, the current prevailing rate schedules in effect at the time of contract are appended to public works contracts. As such, contractors can look to their respective contracts to ensure payment of prevailing rates.
The New York Department of Labor (“NYDOL”) determines the annual prevailing rates on July 1st of each year, which are effective through June 30th of the following year, and posted to the NYDOL’s website.
The NYDOL, however, may subsequently correct or update prevailing rate schedules, which would be issued on the first business day of each month.
Importantly, the NYDOL places the burden on contractors to check whether there have been updates to the annual prevailing rate schedule and will not notify contractors individually. If there has been an update, contractors are responsible for paying the updates prevailing rates retroactive to July 1st of that year. Visit the NYDOL website to review the current Article 8 (Construction) and Article 9 (Building Service) Prevailing Wage Schedules.
As such, contractors subject to prevailing rate requirements are urged to become familiar with the NYDOL’s procedure for posting prevailing rate schedules, and corrections or updates to those schedules.
The NYDOL’s website lists several FAQs to provide information on Article 8 and Article 9 of the New York Labor Law. Ideally, contractors should have an internal system in place to periodically check the DOL’s website for updates to prevailing wage schedules, and thus, ensure they are paying classified workers the proper prevailing rates.
For additional information related to anything contained in this Client Alert, please contact one of the authors listed or any member of our Construction & Public Contracts Practice Group.
