New York recently widened the remit of its prevailing wage labor laws, to include even more building projects. Not everyone agrees this is a good idea as it will increase construction costs. However, the law has been passed, so you need to be aware of how it will affect your business.
How has the law changed?
The prevailing wage law previously applied only to New York’s public projects. Now it has been expanded to include private projects that meet the following two conditions:
- Worth over $5 million
- Subsidized by public money to at least 30% of the total construction costs
However, there are some exemptions to this broadening of prevailing wage laws:
- One- or two-family dwellings in which the owner lives.
- Residential properties where the owner has a maximum of four dwelling units.
- Non-profit projects that meet certain conditions.
- Residential projects that meet a quota of affordable or supportive housing.
- Projects funded by New York’s Downtown Revitalization Initiative.
- Projects funded by New York’s Urban Development Corporation Act.
- Fit-outs or improvements of less than 10,000 square feet through the Small Business
Incubation Program.
- Renewable energy projects and installations that meet specific requirements.
- Work on supermarkets funded through the Food Retail Expansion to Support Health (FRESH) scheme.
- New schools under 60,000 square feet that the city’s education authority will lease.
- Historic rehabilitation projects that are receiving certain tax benefits.
Feel free to consult us for a better understanding of how these changes to New York’s prevailing wage laws could affect your construction business.