Makes contractors ineligible to bid for a public work contract if prevailing rate wages and supplements due from all prior public work contracts remain unpaid.
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: 2011-12: S.730 2009-2010: S.3398 Referred to Labor
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 77 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________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 ineli- gible 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 ASSEM- BLY, 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 CONTRAC- TOR, 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 CONTRAC- TOR OR SUBCONTRACTOR, ANY OF THE PARTNERS IF THE CONTRACTOR OR SUBCON- TRACTOR 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 KNOW- INGLY 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. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01071-01-3