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.
Ayes (28): Kruger, Krueger, Stachowski, Oppenheimer, Montgomery, Duane, Parker, Stavisky, Stewart-Cousins, Thompson, Breslin, Diaz, Espada, Klein, Perkins, Valesky, Peralta, Volker, Padavan, LaValle, Farley, Hannon, Larkin, Nozzolio, Leibell, Maziarz, Marcellino, Robach
Ayes W/R (4): Dilan, DeFrancisco, Seward, Saland
Nays (1): Johnson O
Ayes (37): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, Diaz, Dilan, Duane, Espada, Foley, Fuschillo, Hassell-Thomps, Huntley, Johnson C, Klein, Krueger, Kruger, Montgomery, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Robach, Sampson, Savino, Schneiderman, Serrano, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky
Nays (24): DeFrancisco, Farley, Flanagan, Golden, Griffo, Hannon, Johnson O, Lanza, Larkin, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Nozzolio, Ranzenhofer, Saland, Seward, Skelos, Volker, Winner, Young
Excused (1): Morahan
BILL NUMBER: S2248A REVISED 05/05/10
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 in order to improve compliance with the prevailing wage law.
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 types of work classifications to be used, 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 : This bill addresses the problem of public work contractors evading their duty to pay the prevailing wage. Many responsible contractors already utilize the type of contracts this bill mandates. However, others do not, and take advantage of the absence of such a contract. For example, a contractor may win a contract by submitting the low bid, and then hire inexpensive subcontractors to perform the work below the bid price, generating a profit for the contractor. Unscrupulous contractors can further increase their profits by misclassifying the subcontractors' employees as independent contractors. As a result, enforcement of prevailing wage laws on public work projects has become increasingly difficult.
This legislation will require contractors to use written agreements that include the names and addresses of the parties, the type of worker classifications to be used, and information concerning the amount to be paid to the subcontractor. When misclassified workers complain concerning the non-payment of prevailing wages, an investigation must be undertaken by the labor enforcement authority. By including this required information within a written subcontract, the enforcement authority can investigate and resolve complaints more effectively.
LEGISLATIVE HISTORY : 2009: S.248-A Reported from Labor and Codes to Finance; A.393 passed Assembly 2008: S.6078 Advanced to 3rd Reading; A.2723 Passed Assembly 2006: S.6995 passed Senate 61-0); A.8055 passed Assembly 139-0); Veto 302.
FISCAL IMPLICATIONS : None.
EFFECTIVE DATE : 180 days after becoming law.
STATE OF NEW YORK ________________________________________________________________________ 2248--A 2009-2010 Regular Sessions IN SENATE February 13, 2009 ___________Introduced by Sens. ONORATO, ADDABBO, SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- reported favorably from said committee and committed to the Committee on Codes -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the labor law, in relation to requiring a written agree- ment for any work sub-contracted out on a public works project THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 220 of the labor law is amended by adding a new subdivision 4-a to read as follows: 4-A. 1. NO CONTRACTOR OR SUB-CONTRACTOR CAN ENGAGE A SUB-CONTRACTOR OR ANY PERSON TO PERFORM THE WHOLE OR ANY PART OF A PUBLIC WORKS OR IMPROVEMENT SUB-CONTRACT EXCEPT PURSUANT TO A WRITTEN AGREEMENT. 2. THE TERMS AND CONDITIONS OF SUCH AGREEMENT SHALL INCLUDE, BUT NOT BE LIMITED TO: A. THE NAMES OF THE PARTIES; B. THE OFFICE ADDRESSES OF THE PARTIES, WHICH SHALL NOT BE A POST OFFICE BOX; C. IF THE SUB-CONTRACTOR IS NOT A CORPORATION, THE NAMES OF THE INDI- VIDUAL OWNERS OR PARTNERS AND THEIR HOME ADDRESSES; D. THE TAX IDENTIFICATION NUMBER OF THE SUB-CONTRACTOR; E. A DESCRIPTION OF THE PUBLIC WORK OR IMPROVEMENT TO BE PERFORMED; F. THE WORK LOCATION OR SITE WHERE THE PUBLIC WORK OR IMPROVEMENT IS TO BE SITUATED, ERECTED OR USED; G. THE AMOUNT OF PAYMENT TO THE SUB-CONTRACTOR OR THE MANNER IN WHICH SUCH PAYMENT WILL BE DETERMINED; H. THE TYPES OF WORK CLASSIFICATIONS OF EMPLOYEES UNDER THE SUB-CON- TRACT; ANDEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02550-02-9 S. 2248--A 2
I. AN AGREEMENT TO ABIDE BY AND COMPLY WITH ALL APPLICABLE STATE AND FEDERAL LABOR LAWS, INCLUDING PREVAILING WAGE LAWS AND POSTING REQUIRE- MENTS. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law, and shall apply to contracts entered into on or after such effective date.