Relates to providing notification of prevailing wage violation allegations

BILL NUMBER:S2986

Title of bill

An act to amend the labor law, in relation to providing notification of prevailing wage violation allegations

Purpose

OF THE BILL: This bill mandates that a contractor be given timely notification of allegations of underpayment by a subcontractor in order to hold that contractor liable. Notification must be given within one year of the violation.

Summary of provisions

Section one of the bill amends section 223 of the labor law by stating that contractors shall be liable for prevailing age, violations by sub contractors only if they are notified with one year of the violation.

Section 2 of the bill amends section 740 of the labor law as it relates to the notice.

Section 3 relates to the effective date.

Justification

Currently a contractor can be held liable for a wage violation committed by a sub contractor regardless of the amount of time that has passed since the alleged violation. Therefore, a contractor may have finished the job and paid the subcontractor in full before they have any idea that a worker has been underpaid. Such open-ended liabil- ity prevents contractors from conducting a proper investigation and/or withholding final payment. A one year limit both protects the contractor and the worker from unscrupulous subcontractors.

Prior legislative history

S.8120 Referred to Labor A.10838 Referred to Rules S.3969 2011: Referred to Labor 2012: Referred to Labor

Fiscal implications for state

None.

Effective date

This act shall take effect on the 60th day after becom- ing law, with provisions.