Requires that a contractor or sub-contractor may not engage another person to do work on a public works project unless it is pursuant to a written agreement

3 Co-sponsors

• Joseph P. Addabbo Jr.
• José Peralta
• Diane J. Savino

Title of bill

An act to amend the labor law, in relation to requiring a written agreement for any work sub-contracted out on a public works project

Purpose or general idea of bill

To require a written agreement that specifies the parties and the work to be performed by subcontractors on a public work project in order to improve compliance with the prevailing wage law.

Summary of provisions

Section 1 of the bill requires contractors and subcontractors to enter into a written contract that includes the names of parties, their office addresses, the tax identification number of the subcontractor, the terms of work to be performed, the types of work classifications to be used, and an agreement to abide by all applicable state and federal labor laws.

Existing law

Article 8 of the Labor Law relating to public work does not require written agreements between contractors and subcontractors.

Justification

This bill addresses the problem of public work contractors evading their duty to pay the prevailing wage. Many responsible contractors already utilize the type of contracts this bill mandates. However, others do not, and take advantage of the absence of such a contract. For example, a contractor may win a contract by submitting the low bid, and then hire inexpensive subcontractors to perform the work below the bid price, generating a profit for the contractor. Unscrupulous contractors can further increase their profits by misclassifying the subcontractors' employees as independent contractors. As a result, enforcement of prevailing wage laws on public work projects has become increasingly difficult.

This legislation will require contractors to use written agreements that include the names and addresses of the parties, the type of worker classifications to be used, and information concerning the amount to be paid to the subcontractor. When misclassified workers complain concerning the non-payment of prevailing wages, an investigation must be undertaken by the labor enforcement authority. By including this required information within a written subcontract, the enforcement authority can investigate and resolve complaints more effectively.

Legislative history

2009: S.248-A Reported from Labor and Codes to Finance; A.393 passed Assembly 2008: S.6078 Advanced to 3rd Reading; A.2723 Passed Assembly 2006: S.6995 passed Senate 61-0); A.8055 passed Assembly 139-0); Veto 302.

Fiscal implications

None.

Effective date

180 days after becoming law.