Legislation under consideration in the New York Senate and Assembly (S2975A/A5498A) would broaden the definition of “public works” to require contractors working on virtually any construction project financed wholly or in part by public entities to pay the prevailing wage to workers. Specifically, the bill considers public funds to include the payment of money, issuance of bonds and grants by a public entity or third party, public asset transfers, loans, tax credits and any other form of public subsidies. It also requires labor for the “custom fabrication” of construction products produced offsite to be compensated at a prevailing wage rate.
Eighteen organizations, including the Associated Builders and Contractors’ Empire State Chapter, sent a letter to the legislature and Gov. Andrew Cuomo stating their opposition to the proposed bills. Of note, a 2018 report by the Empire Center for Public Policy found existing prevailing wage law raises construction costs by 13 percent in the Albany-Schenectady-Troy area of New York.
