Relates to prevailing wage for service workers

Summary of specific provisions

The bill amends section 230 of the Labor Law by including within the definition of "building service employee or employee", those performing work at the facilities of public agencies that provide public utility services.

It amends the applicable dollar amount threshold of contracts with public agencies covered by Section 230.

It makes clear that the amendments will not apply to any employees performing work for a business improvement district (BID) that is not covered under the current law. Those BIDs that are currently covered by the requirement of Article 9 will continue to be.

The definition of "public agency" is amended to include public utility services provided by a public authority or by a public utility selling gas, electric or steam services at retail rates under a franchise granted by the Public Service Commission (including any substantially-owned entity affiliated with the public utility).

The term "public utility" is included within the definition "Substantially-owned affiliated entity".

The definition of "person" is added to ensure that the law is enforceable against partnerships, joint ventures and other forms of organization.

A new Section 235(2)(g) is added to empower the fiscal officer to request and receive records from the person or entity who is responsible for paying the service employees, and authorizes under certain circumstances the withholding of payments from such person or entity that fails to produce the records.

Section 237 is also amended to provide enforcement tools that make the willful failure to file payroll records with the public agency a class E felony, and that require public agencies to designate an individual responsible for the receipt, collection and review for facial validity of the contractors' certified payroll statements before payment is made.

Section 238 is amended to increase the criminal penalties for failure to pay a service worker prevailing wages to a misdemeanor and the greater of two thousand five hundred dollars or double the amount of underpayments for a first violation; and a class E felony and the greater of five thousand dollars or three times the amount of underpayment, or imprisonment for a second or subsequent violation.

Current law

Currently, there is an exemption for public utility companies in the state prevailing wage law which guarantees contracted service employees the private sector market rate at public sites and facilities. The current law lacks many of the procedural safeguards and enforcement tools that have long been incorporated into Article 8 of the labor law. Combined with some ambiguous and outdated definitions, this has left the door open for efforts to avoid paying prevailing wages for service work performed for public agencies. This bill would remove the public utility exemption and bolster the ability of enforcement agencies to ensure that service employees receive the prevailing wages to which they are entitled. Business improvement districts are exempted from this legislation, unless such work performed directly or indirectly for such entities would have been subject to the requirements of Article 9 as in effect on January first, 2013.

Justification

For almost forty years, Article 9 of the Labor Law has promoted the public policy that workers who perform service work should be paid the prevailing wage. This bill clarifies the definitions and applicability of Article 9 and adds provisions that are analogous to several enforcement tools that have long been a part of Article 8, in order to ensure that prevailing wages are Paid for all appropriate service work.

Prior legislative history

2012 - died in Senate Labor; reported from Assembly Labor, died in Codes. 2010 - P-Senate 32-27; P-Assembly 92-48; vetoed ( 6838).

Fiscal implications

Any fiscal implications are completely dependent upon the specific agency /worksite circumstances, including when current contracts or agreements expire or are up for renewal and what terms are negotiated in the future.

Effective date

Ninetieth day after enactment and shall apply to all contracts or other agreements entered into, renewed or extended on or after such date.