NYS Prevailing Wage Compliance

What is the Prevailing Wage Law in New York?

Prevailing wage is the pay rate set by law for work on public work projects. Under New York State Labor Law, prevailing wage compliance occurs when all workers under a public work contract are paid the prevailing rate of wage and supplements (fringe benefits) by contractors and subcontractors. This applies to all laborers, workers, or mechanics employed under a public work contract.

As of January 1, 2022, an expansion of prevailing wage law in New York took effect. The new law significantly increases the group of construction projects subject to prevailing wage requirements. Prior to the new law, the only projects that fell under prevailing wage requirements were those where a public entity was a party to a construction project and the purpose of the work benefited the public.

Subject to various exclusions, a “covered project” is defined, in general, as construction project work in which costs exceed $5 million, and the project receives public funds that cover at least 30 percent of the total construction project costs.

Article 8 NYS Prevailing Wage Schedules/Updates

According to the New York State Department of Labor, Prevailing Wage Schedules are issued separately for “General Construction Projects” and “Residential Construction Projects” on a county-by-county basis.

General Construction Rates apply to projects such as: Buildings, Heavy & Highway, Tunnel and Water & Sewer rates.

Residential Construction Rates generally apply to construction, reconstruction, repair, alteration, or demolition of one family, two family, row housing, or rental type units intended for residential use. Some rates listed in the Residential Construction Rate Schedule have a very limited applicability listed along with the rate. Rates for occupations or locations not shown on the residential schedule must be obtained from the General Construction Rate Schedule. Please contact the local Bureau of Public Work office before using these Residential Rate Schedules, to ensure that the project meets the required criteria.

Article 9 NYS Prevailing Wage Schedules/Updates

According to the New York State Department of Labor, the Commissioner of Labor makes an annual determination of the Building Service rates (Article 9) prevailing rates which are in effect from July 1st through June 30th of the following year.
The Labor Law requires public work contractors and subcontractors to pay a service employee under a contract for building service work for a public agency, a wage of not less than the prevailing wage and supplements (fringe benefits) in the locality for the craft, trade, or occupation of the service employee. Such a public work building service contract must be in excess of one thousand five hundred dollars ($1,500.00).

Building service employee includes, but is not limited, to watchman, guard, building cleaner, porter, janitor, gardener, groundskeeper, stationary fireman, elevator operator and starter, fire safety director, window cleaner, and occupations relating to the collection of garbage or refuse, and to the transportation of office furniture and equipment, and to the transportation and delivery of fossil fuel but does not include clerical, sales, professional, technician and related occupations.

GTM Helps With NYS Prevailing Wage Compliance

GTM Payroll Services provides state-of-the-art software and payroll communication platforms that support construction clients’ compliance with NYS Prevailing Wage regulations and documentation.

The construction industry has special needs including:

• Job Cost Breakdowns, such as prevailing wage rates
• Certified Payrolls
• Benefits Tracking
• Flexible Time

By noting the Prevailing Wage alongside the hourly rate and job code, GTM’s clients and their employees benefit from peace-of-mind that all required information is properly noted and calculated with each payroll. Clients and employees alike can then verify that the Prevailing Wage for each job code is correctly referenced, and that they are compensated accurately.

Request a free quote to learn more about how GTM keeps clients compliant with state and federal labor laws.