NYS Proposed Prevailing Wage Requirements. The following alert is a follow up to our last alert (initial indicators from the 2021 budget) for Developers and Contractors.
On April 3rd, Governor Cuomo signed New York State’s $177 billion budget for fiscal year 2021. The legislation contains provisions to expand prevailing wage requirements for private construction projects where (i) at least 30% of total construction project costs are paid for by public funds and (ii) the project cost exceeds $5 million. This expansion will take effect on January 1, 2022 unless the newly created public subsidy board (PSB) decides to delay implementation.
Prior to this legislation, prevailing wage requirements applied only to projects directly undertaken by the State, municipalities, school districts, and other public authorities. The precise amount of the prevailing wage varies by location and trade, is set by the State Labor Commissioner and the Office of the Comptroller in New York City, and is based on union collective bargaining agreements.
The new legislation applies to applicable benefits received from New York State, municipalities, local development corporations, and industrial development agencies.
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