Updates to Prevailing Wage Laws Impact School District Public Works Contracts

New changes to New York’s prevailing wage law are now in effect and carry important implications for school districts. The updates are intended to strengthen enforcement and transparency around wage compliance on public works contracts under Labor Law §220. The changes also expand the scope of “public work” subject to prevailing wage.

Contractors and subcontractors must now register with the New York State Department of Labor (NYSDOL) before submitting bids on public projects subject to prevailing wage requirements. This registration process verifies that the contractor is in good standing and has certified compliance with labor standards. Bidders on public works contracts must now include proof of NYSDOL registration with all bid submissions. A bidder’s failure to provide proof of registration is grounds for disqualification.

In addition, the NYSDOL has launched a new Certified Payroll Portal designed to streamline oversight and wage verification. All contractors and subcontractors working on projects subject to prevailing wage requirements must electronically upload certified payroll records to this portal. Contractors and subcontractors are required to obtain Prevailing Rate Case numbers from school districts to electronically upload certified payroll records.

The scope of “public work” subject to prevailing wage laws has been expanded. Public work now includes certain “custom fabrication” performed off-site, even if that fabrication work takes place in a different state or jurisdiction. Under the legislation, workers performing covered off-site fabrication work must be paid the applicable prevailing wage rate. The law defines “custom fabrication” as work that is solely and specifically designed and engineered for a covered public works building or work. Examples of custom fabrication set forth in the law include: (1) exterior and interior wall panel systems; (2) woodwork; (3) electrical systems; (4) plumbing systems; (5) heating, cooling, ventilation or exhaust duct systems; (6) rebar cages; and (7) mechanical insulation.

For school districts, these updates mean:

• Bid specifications should be revised to require NYSDOL registration and proof of compliance as part of bid submission materials.

• School districts should confirm that all contractors and subcontractors have provided proof of NYSDOL registration with their bids.

• School districts should obtain Prevailing Rate Case numbers for projects to allow contractors and subcontractors to upload certified payrolls through the NYSDOL portal.

• School districts should be mindful of prevailing wage requirements applicable to “custom fabrication” performed off-site.

If you would like assistance with navigating changes to prevailing wage requirements, feel free to contact Jeff Lewis at jmlewis@ferrarafirm or at one of the telephone numbers listed below.