Bill S2248-2009

Requires that a contractor or sub-contractor may not engage another person to do work on a public works project unless it is pursuant to a written agreement.

Details

Memo

 BILL NUMBER:  S2248               REVISED 02/26/09

TITLE OF BILL : An act to amend the labor law, in relation to requiring a written agreement for any work sub-contracted out on a public works project

PURPOSE OR GENERAL IDEA OF BILL : To require a written agreement that specifies the parties and the work to be performed by subcontractors on a public work project.

SUMMARY OF PROVISIONS : Section 1 of the bill requires contractors and subcontractors to enter into a written contract that includes the names of parties, their office addresses, the tax identification number of the subcontractor, the terms of work to be performed, the projected number of employees and their work classifications, and an agreement to abide by all applicable state and federal labor laws.

EXISTING LAW : Article 8 of the Labor Law relating to public work does not require written agreements between contractors and subcontractors.

JUSTIFICATION : Enforcement of prevailing wage laws on public work projects has become increasingly difficult. This legislation will require contractors to set forth in a written agreement the terms of the project and work classification information in such a way to improve compliance with prevailing wage laws. It is not uncommon for employers on public work projects to misclassify workers as independent contractors. When workers complain that they are not being paid their prevailing wages, an investigation must be undertaken by the labor enforcement authority. In many cases, the available information is limited to the names and classifications of workers. By requiring the parties to provide written information including the projected workforce and delivery schedule, and the location and description of services, the enforcement authority can investigate and resolve complaints more quickly and effectively. Where liability for non-payment is found, the availability of information concerning the owners and partners of the employer help to expedite the recovery and return of the wages and supplements owed to workers.

LEGISLATIVE HISTORY : 2008: S.6078 Advanced to 3rd Reading; A.2723 Passed Assembly 2006: S.6995 Passed Senate, A.8055 Passed Assembly; Veto 302.

FISCAL IMPLICATIONS : None.

EFFECTIVE DATE : This act shall take effect 180 days after it becomes law.

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