Makes contractors ineligible to bid for a public work contract if prevailing rate wages and supplements due from all prior public work contracts remain unpaid

BILL NUMBER:S730

Title of bill

An act to amend the labor law, in relation to making contractors ineligible to bid for a public work contract if prevailing rate wages and supplements due from a prior public work contract remain unpaid

Purpose

To prohibit contractors and subcontractors from bidding on public work contracts until all prevailing wages and supplements due from such prior contracts are paid.

Summary of provisions

The bill would amend section 220-b(3)(b) of the Labor Law to prohibit any contractor, subcontractor, or their substantially-owned affiliates, partners, controlling shareholders or successors from bidding on or being awarded a public work contract until the prevailing wages and supplements determined to be due from prior public work contracts are paid.

Existing law

Section 220-b(3) of the Labor Law prohibits any contractor, subcontractor, or their substantially-owned affiliates, partners, controlling shareholders or successors from bidding on or being awarded a public work contract within five years following two final determinations that they willfully failed to pay prevailing wages and supplements, or after a final determination involving the falsification of records or kickback of wages.

Justification

The state spends a significant amount of money on public work projects. The payment of prevailing wages to employees for public work is required under the state constitution and labor law. Contractors awarded public work contracts have a legal duty to comply with the law and should not be allowed to bid on new projects until they fulfill that duty. Public work employees depend upon their earnings to support themselves and their families and are entitled to be paid in a timely manner.

This bill addresses a common problem where a contractor or subcontractor that is violating the prevailing wage law has several other projects in the works. The enforcement officer may have a complaint for non-payment concerning one of these projects, but not for the others. If the hearing on the complaint finds a willful failure to pay prevailing wages, the contractor may still continue to bid and be awarded new public work contracts even if wages remain due from prior projects. This problem occurs even where contractors enter into consent orders or settlements to pay wages. This legislation would ensure that where such determinations have been reached, the

contractor may not bid or receive new contracts until the payment of wages is satisfied.

Prior legislative history

2009-2010: S.3398 Referred to Labor

Fiscal implications

None.

Effective date

This act shall take effect immediately.