Requires prevailing wage supplements which are payable directly to employees to be paid in the form of a negotiable instrument.
TITLE OF BILL: An act to amend the labor law, in relation to the payment of prevailing wage supplements
PURPOSE: To prevent fraud and abuse in the payment of prevailing wage supplements.
SUMMARY OF PROVISIONS:
Section 1: Provides that prevailing wage supplements shall not be paid in the form of cask Section 2: Effective Date.
EXISTING LAW: Currently, any portion or all of the prevailing wage supplement obligations of a contractor or subcontractor may be satisfied by paying workers in cash with their regularly weekly wages.
JUSTIFICATION: Under New York State Law, prevailing wage supplements may be provided to workers through (1) cash payments in lieu of supplements, (2) through irrevocable contributions to a fund, plan or program, or (3) any combination of the aforementioned.
As some interpret "cash" to mean that workers can receive supplemental benefits in their weekly paychecks, and others interpret "cash" to mean that workers can receive actual "cash" (i.e. paper money, dollar bills, coins, etc) in addition to their paychecks, this legislation seeks to clarify the meaning of cash and eliminate the payment of prevailing wage supplements in actual cash (i.e. paper money).
When supplements are paid in cash in addition to a paycheck, the supplement payments become more difficult to track and create room for abuse and fraud. This legislation seeks to prevent abuse and fraud surrounding the payment of prevailing, wage supplements by providing that all prevailing wage supplements be paid in the form of a negotiable instrument (i.e. a check), and under no circumstances shall they be paid in the form of cash (i.e. paper money).
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect on the thirtieth day after it shall have become a law and shall apply to prevailing wage supplements accruing on or after such date.
STATE OF NEW YORK ________________________________________________________________________ 4692 2013-2014 Regular Sessions IN SENATE April 18, 2013 ___________Introduced by Sen. LARKIN -- 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 the payment of prevailing wage supplements THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph b of subdivision 5 of section 220 of the labor law, as amended by chapter 752 of the laws of 1989, is amended to read as follows: b. "Supplements," for the intents and purposes of this article, means all remuneration for employment paid in any medium other than cash, or reimbursement for expenses, or any payments which are not "wages" within the meaning of the law, including, but not limited to, health, welfare, non-occupational disability, retirement, vacation benefits, holiday pay, life insurance, and apprenticeship training. PROVIDED, FURTHER, THAT NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER TO THE CONTRARY, ALL SUPPLEMENTS PAYABLE DIRECTLY TO EMPLOYEES PURSUANT TO THIS ARTICLE SHALL BE PAID IN THE FORM OF A NEGOTIABLE INSTRUMENT, AND UNDER NO CIRCUM- STANCE SHALL SUCH SUPPLEMENTS BE PAID IN THE FORM OF CASH. S 2. This act shall take effect on the thirtieth day after it shall have become a law and shall apply to prevailing wage supplements accru- ing on or after such date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10195-01-3