What's happening
This bill allows losing bidders on construction projects to sue winning bidders for damages if the winners violated labor or workers' compensation laws.
Why it matters
Creates a direct financial incentive for construction bidders to follow labor and workers’ compensation laws. , since losing bidders can sue for damages if the winner broke the rules to win the contract.
Defines any rejected bidder as automatically “injured” by not winning the contract. , making it easier for them to bring a lawsuit without needing to prove specific financial harm.
Allows damages of at least 10% of the winning bid, plus legal costs and attorney fees. , which could deter companies from cutting corners on worker classification or insurance to lower their bid costs.
Includes a limited defense for accidental violations. , so a winning bidder can avoid liability if they prove misclassification was not intentional—potentially protecting businesses from honest mistakes but still holding deliberate violators accountable.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Let Losing Bidders Sue
Plain English, a few words. Used as the page title.
Sponsors
3 Multi-sponsors
History
- Referred to labor
- Referred to labor
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2580
2017-2018 Regular Sessions
IN ASSEMBLY
January 20, 2017
Introduced by M. of A. PERRY -- Multi-Sponsored by -- M. of A. COOK, GOTTFRIED, RIVERA -- read once and referred to the Committee on Labor
AN ACT to amend the general business law, in relation to a right of action for violation of statutes in bids on construction projects
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 399-ggg to read as follows:
§ 399-ggg. Fairness in competitive bidding. 1. For the purpose of this section:
(a) The term "person" shall include any individual, firm, association, partnership or corporation.
(b) The term "construction project" shall include any project involving the construction, modernization, improvement, rehabilitation, repair, maintenance, replacement or renovation of a building, road or structure, or any portion of such a project performed pursuant to a subcontracting arrangement.
2. (a) Any person whose competitive bid for a construction project has been rejected and instead awarded to another person may bring an action for damages in a court of competent jurisdiction against the winning bidder if the winning bidder has violated the labor law or the workers' compensation law by failing to pay required taxes or secure insurance pursuant to such laws for any reason including misclassifying one or more of its workers other than an employee in its bid cost.
(b) The determination whether a worker on a construction project is properly classified as an employee shall be made in accordance with applicable state law.
3. (a) A party unsuccessfully bidding on a construction project will be deemed to have suffered an injury by virtue of not having been awarded the bid, regardless of whether the winning bidder realizes a net profit on the performance of the contract.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08110-01-7
A. 2580 2
(b) A winning bidder who is a defendant in an action brought pursuant to this section shall not be liable for damages if he establishes, as an affirmative defense, that the failure to comply with state laws requiring employers to pay state unemployment insurance or secure workers' compensation coverage resulting from the misclassification of an employee as other than an employee if the bid was not a knowing violation.
4. Any party who successfully maintains an action under this section shall be entitled to damages from the winning bidder in an amount not less than ten percent of the amount of the successful bid, or such greater amount as shall be determined by the court, and in addition to any other damages awarded, shall be entitled to the payment of all of its costs and reasonable attorneys' fees in bringing the action.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.