What's happening
This bill makes contractors ineligible to bid on public work contracts if they have unpaid prevailing wages or supplements from prior contracts.
Why it matters
Expands accountability. by making not just contractors, but also subcontractors, business successors, major shareholders (10%+ owners), and certain officers and partners ineligible for public contracts if they have unpaid prevailing wages or supplements—closing loopholes often used to avoid responsibility.
Targets willful noncompliance. by focusing on those who have “knowingly participated” in wage violations, aiming to prevent repeat offenders from simply rebranding or shifting ownership to continue bidding on public projects.
Increases leverage for workers. since contractors and their affiliates must resolve all outstanding wage obligations from prior public contracts before regaining eligibility, thereby strengthening enforcement of wage laws and supporting fair pay practices.
Could affect public project timelines and competition. if frequent violators or large firms are barred from bidding, potentially leading to fewer eligible bidders and encouraging better compliance industry-wide.
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Who cares
Public works contractors and subcontractors
After a final determination of willful failure to pay prevailing wages or supplements, they would be barred from bidding on or receiving public work contracts or subcontracts until all such amounts due from prior public work contracts are paid.
Contractor affiliates, successors and owners
The bidding and award restrictions would also reach substantially owned affiliates, successors, partners, shareholders owning or controlling at least 10 percent of stock, and officers who knowingly participated in the violation.
Public works employees
The bill would make payment of their overdue prevailing wages and supplements a condition for covered violators to regain eligibility for public work contracts.
State agencies, municipal corporations and public bodies
They would be prohibited from awarding public work contracts or subcontracts to covered violators while the specified wage and supplement debts remain unpaid.
Headline styles
Block Unpaid Wage Contractors
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to labor
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Bar Unpaid Wage Bidders
In Assembly Committee · Labor · Sponsor Michael G. Miller
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
593
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. PERALTA -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph b of subdivision 3 of section 220-b of the labor law is amended by adding a new subparagraph 1-a to read as follows:
(1-a) When a final determination has been rendered against a contractor, subcontractor, successor, or any substantially-owned affiliated entity of the contractor or subcontractor, any of the partners if the contractor or subcontractor is a partnership, any officer of the contractor or subcontractor who knowingly participated in the violation of this article, any of the shareholders who own or control at least ten per centum of the outstanding stock of the contractor or subcontractor or any successor has wilfully failed to pay the prevailing rate of wages or to provide supplements in accordance with this article, whether such failures were concurrent or consecutive, such contractor, subcontractor, successor, or any substantially-owned affiliated entity of the contractor or subcontractor, any of the partners if the contractor or subcontractor is a partnership or any of the shareholders who own or control at least ten per centum of the outstanding stock of the contractor or subcontractor, any officer of the contractor or subcontractor who knowingly participated in the violation of this article shall be ineligible to submit a bid on or be awarded any public work contract or subcontract with the state, any municipal corporation or public body unless and until all prevailing rates of wages and supplements due from all prior public work contracts have been paid.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00052-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
2015-2016 -S.1255 2013-2014 - S.77 2011-12: S.730 2009-2010: S.3398 Referred to Labor
Fiscal implications
None. EFFECTIVE DATE : This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.