New York State has increased compliance for contractors by amending a bill making contractors and subcontractors responsible and accountable to provide additional disclosures to workers on public works jobs.

The bill has been law for more than 10 years, but this amendment ups the ante regarding full disclosure of the supplement dollars on every job.  The amendments to the law take effect June 26, 2020.

Procedures that must be followed:

  1. All supplements due under this bill shall be paid to or on behalf of an employee.
  2. Postings requirements on the job site must include all wage rates and supplements for the various job classifications in a conspicuous location using a weather-proof sign. The sign shall be titled “Prevailing Rate of Wage” and must have lettering at least 2 inches by 2 inches.
  3. A written notice must be provided to every worker, laborer, or mechanic, in English and their primary language, of the prevailing wage and the amount paid per hour for each supplement for the job classification. The notice shall be provided upon hire and on every pay stub.
  4. A written notice containing the fiscal officer’s telephone number and address, informing employees of their right to contact the fiscal officer or some other representative if they do not receive the proper prevailing rate of wage or supplements for their particular job classification.  The notice shall be provided at the beginning of every public works contract and with the first paycheck after July 1st of each year.
  5. The fiscal officer (typically the letting agency), will provide a template that complies with the notification requirements in English and a secondary language to the workers. The template will be posted on the fiscal officer’s website.  The fiscal officer takes responsibility for deciding the secondary language in the template.
  6. A contractor or subcontractor must submit an original payroll record within 30 days to the Commissioner of Labor and/or fiscal officer, and annually thereafter.
  7. In addition to the payroll records, submission of a form, supplied by the Department of Labor, to disclose under penalty of perjury, where and how much supplement dollars are paid to a plan, fund, or program.
  8. The fiscal officer may request proof that any plan, program or benefit for which any supplement has been paid or provided be qualified as a bona fide plan, program or benefit pursuant to state and federal law.

The bill will keep its penalty enforcement if a contractor or subcontractor misleads, provides inaccurate wage or supplement information, or does not file the necessary documentation.

The bill identifies pertinent information for Department of Labor investigators to determine if a contractor or subcontractor is paying the correct supplement benefit wages to its employees.

It also identifies if a contractor is using supplement dollars for, or on behalf of, the worker in the form of a bona fide benefit.  By having this information, investigators can determine if the benefits are bona fide (approved), if there is a plan, fund or benefit is IRS-approved and determine the amount of “dollar credit” being used for those benefits.  This has implications regarding annualization.

If a contractor or subcontractor is using a supplement dollar credit, paying supplement dollars for benefits, the contractor MUST pay the dollar credit amount taken on public work hours on private hours too!

Most, if not all, of you who are reading this have fully disclosed the fringe benefit dollar amounts to your workers.

Keeping accurate records and being transparent will satisfy your responsibility!

If you have any questions regarding the compliance of this new bill, please feel free to contact DirectAdvisors at 518-362-2119, or by email at RPW.Direct.Advisors.Info@hubinternational.com.