S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10682
 
                           I N  A S S E M B L Y
 
                              August 28, 2024
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Rajkumar) --
   read once and referred to the Committee on Labor
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to prevailing wage for certain city service contracts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. This act shall be known and may be cited as the "Close the
 Gap Act."
   § 2. Paragraphs 18, 19, 20 and 21 of subdivision a and  subdivision  b
 of  section 6-109 of the administrative code of the city of New York, as
 added by local law number 38 of the city of New York for the year  2002,
 are amended to read as follows:
   (18)  "Prevailing  Wage  and  Supplements"  means the rate of wage and
 supplemental benefits per hour paid in the locality to  workers  in  the
 same  trade  or occupation and annually determined by the comptroller in
 accordance with the provisions of section 234  of  the  New  York  state
 labor  law  or,  for titles not specifically enumerated in or covered by
 that law, determined by the comptroller at the request of a  contracting
 agency  or  a  covered  employer  in  accordance  with the procedures of
 section 234 of the New York state labor law; PROVIDED, HOWEVER, THAT FOR
 ANY TRADE OR OCCUPATION IN WHICH 75 PER CENTUM OR MORE EMPLOYEES  ARE  A
 MEMBER  OF  THE  SAME  PROTECTED CLASS AND SUCH RATE OF WAGE AND SUPPLE-
 MENTAL BENEFITS WOULD BE LESS THAN THE LOWEST RATE OF A COVERED BUILDING
 SERVICES EMPLOYEE, THE PREVAILING WAGE AND SUPPLEMENTS  MAY  BE  GREATER
 THAN  THAT  PAID IN THE LOCALITY TO WORKERS IN THE SAME TRADE OR OCCUPA-
 TION.  As provided under section 231 of the New York  state  labor  law,
 the  obligation  of  an  employer  to  pay prevailing supplements may be
 discharged by furnishing any equivalent combinations of fringe  benefits
 or by making equivalent or differential payments in cash under rules and
 regulations established by the comptroller.
   (19)  ["Living Wage" has the meaning provided in paragraph 2 of subdi-
 vision b of this section.
   (20)] "Health Benefits" has the meaning provided in paragraph [3] 2 of
 subdivision b of this section.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15966-02-4
 A. 10682                            2
 
   [(21) "Health Benefits Supplement Rate" has the  meaning  provided  in
 subparagraph b of paragraph 3 of subdivision b of this section.]
   b.  [Living  Wage,] Prevailing Wage and Health Benefits. (1) Coverage.
 (a) A  city  service  contractor  or  city  service  subcontractor  that
 provides  homecare  services,  day care services, head start services or
 services to persons with cerebral palsy must pay its  covered  employees
 that  directly  render  such services in performance of the city service
 contract or subcontract no less than the [living]  PREVAILING  wage  and
 must  either  provide  its  employees health benefits or must supplement
 their hourly wage rate by an amount no less than the  [health  benefits]
 PREVAILING  supplement rate. This requirement applies for each hour that
 the employee works performing the city service contract or subcontract.
   (b) A city service  contractor  or  city  service  subcontractor  that
 provides building services, food services or temporary services must pay
 its  employees  that are engaged in performing the city service contract
 or subcontract no less than the [living wage or the]  prevailing  wage[,
 whichever is greater. Where the living wage is greater than the prevail-
 ing wage, the city service contractor or city service subcontractor must
 either  provide  its  employees health benefits or must supplement their
 hourly wage rate by an amount no less than the health  benefits  supple-
 ment  rate.  Where  the prevailing wage is greater than the living wage,
 the city service contractor or city service subcontractor  must  provide
 its  employees  the prevailing wage and supplements as provided in para-
 graph 18 of subdivision a of this section. These requirements apply  for
 each  hour  that the employee works performing the city service contract
 or subcontract].
   (2) [The Living Wage. The living wage shall be an hourly wage rate  of
 ten  dollars per hour and will be phased in as provided below. Provided,
 however, that for homecare services under  the  Personal  Care  Services
 program, the wage and health rates below shall only apply as long as the
 state  and  federal government maintain their combined aggregate propor-
 tionate share of funding and approved rates  for  homecare  services  in
 effect as of the date of the enactment of this section:
   (a) As of the effective date of this section, $8.10 per hour;
   (b) As of July 1, 2003, $8.60 per hour;
   (c) As of July 1, 2004, $9.10 per hour;
   (d) As of July 1, 2005, $9.60 per hour;
   (e) As of July 1, 2006, $10.00 per hour.
   (3)]  Health  Benefits. (a) Health Benefits means receipt by a covered
 employee of a health care benefits  package  for  the  covered  employee
 and/or  a health care benefits package for the covered employee and such
 employee's family and/or dependents.
   (b) [The Health Benefits Supplement Rate shall be $1.50 per hour.
   (c)] For homecare services provided under the Personal  Care  Services
 program, the wage and health rates above shall only apply as long as the
 state  and  federal government maintain their combined aggregate propor-
 tionate share of funding and approved rates  for  homecare  services  in
 effect as of the date of the enactment of this section.
   [(d)]  (C)  In  the case of city service contractors or subcontractors
 providing homecare services, the health benefits  requirements  of  this
 section  may be waived by the terms of a bona fide collective bargaining
 agreement with respect to employees who have never worked a  minimum  of
 eighty  (80) hours per month for two consecutive months for that covered
 employer, but such provision may not be waived for  any  employees  once
 they  have  achieved  a minimum of eighty (80) hours for two consecutive
 months and no other provisions of this section may be so waived.
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   [(4)] (3) Exemption for Employment Programs for the Disadvantaged. The
 following categories of employees shall not be subject to  the  require-
 ments of this section:
   (a) Any employee who is:
   (i) Under the age of eighteen who is claimed as a dependent for feder-
 al  income  tax  purposes  and  is employed as an after-school or summer
 employee; or
   (ii) Employed as a trainee in a bona fide training program  consistent
 with  federal and state law where the training program has the goal that
 the employee advances into a permanent position; provided, however, that
 this exemption shall apply only  when  the  trainee  does  not  replace,
 displace or lower the wages or benefits of any covered employee, and the
 training does not exceed two years; and
   (b) Any disabled employee, where such disabled employee:
   (i) Is covered by a current sub-minimum wage certificate issued to the
 employer by the United States department of labor; or
   (ii)  Would be covered by such a certificate but for the fact that the
 employer is paying a wage equal to or higher than  the  federal  minimum
 wage.
   [(5)]  (4) Retaliation and Discrimination Barred. It shall be unlawful
 for any covered employer to retaliate, discharge, demote, suspend,  take
 adverse  employment  action in the terms and conditions of employment or
 otherwise discriminate against any covered  employee  for  reporting  or
 asserting  a  violation  of  this  section, for seeking or communicating
 information regarding rights conferred by this section,  for  exercising
 any  other  rights protected under this section, or for participating in
 any investigatory or court proceeding relating  to  this  section.  This
 protection  shall  also  apply  to  any covered employee or [his or her]
 THEIR representative who in good  faith  alleges  a  violation  of  this
 section,  or  who  seeks  or  communicates  information regarding rights
 conferred by this section in circumstances where [he or she] SUCH PERSON
 in good faith believes this section applies. Taking  adverse  employment
 action  against  a  covered  employee(s) or [his or her] THEIR represen-
 tative within sixty days of the covered employee engaging in any of  the
 aforementioned activities shall raise a rebuttable presumption of having
 done  so  in  retaliation  for  those  activities.  Any covered employee
 subjected to any action that violates this subsection may pursue  admin-
 istrative  remedies  or bring a civil action pursuant to subsection e of
 this section in a court of competent jurisdiction.
   [(6)] (5) Nothing in this section shall be construed  to  establish  a
 wage  or  benefit pattern or otherwise affect the establishment of wages
 or benefits for city employees.
   § 3. Subparagraph (a) of paragraph 1 of subdivision d of section 6-109
 of the administrative code of the city of New York, as  added  by  local
 law  number  38 of the city of New York for the year 2002, is amended to
 read as follows:
   (a) The mayor or [his or her] THEIR designee shall  promulgate  imple-
 menting  rules  and  regulations as appropriate and consistent with this
 section and may delegate such authority to the  comptroller.  The  comp-
 troller  shall  be  responsible for [publishing the living wage and for]
 calculating and publishing all applicable prevailing  wage  and  [health
 benefits]  PREVAILING  supplement  rates. The comptroller shall annually
 publish the adjusted rates. The [adjusted living wage and  health  bene-
 fits  supplement rate shall take effect on July 1 of each year, and the]
 adjusted prevailing wage  rates  shall  take  effect  on  whatever  date
 revised  prevailing wage rates determined under section 230 of the state
 A. 10682                            4
 
 labor law are made effective.  At least 30 days prior to their effective
 date, the relevant contracting agencies, shall  provide  notice  of  the
 adjusted  rates to city service contractors, which shall in turn provide
 written  notification  of  the rate adjustments to each of their covered
 employees, and to any city service subcontractors, which shall  in  turn
 provide written notification to each of their covered employees. Covered
 employers  shall  make necessary wage and health benefits adjustments by
 the effective date of the adjusted rates.
   § 4. Subparagraph (b) of paragraph 2 of  subdivision  d    of  section
 6-109  of  the  administrative code of the city of New York, as added by
 local law number 38 of the city of  New  York  for  the  year  2002,  is
 amended to read as follows:
   (b) Every city service contract shall have annexed to it the following
 materials which shall form a part of the specifications for and terms of
 the city service contract:
   (i)  A provision obligating the city service contractor to comply with
 all applicable requirements under this section;
   (ii) The certification required under paragraph 2 of subdivision c  of
 this section;
   (iii)  A  schedule of the current [living] PREVAILING wage [and health
 benefits] supplement rates, a schedule of job classifications for  which
 payment  of  the prevailing wage is required under this section together
 with the applicable prevailing wage rates for each  job  classification,
 as determined by the comptroller and notice that such rates are adjusted
 annually; and
   (iv)  A  provision  providing  that:  (a)  Failure  to comply with the
 requirements of this section may constitute a  material  breach  by  the
 city  service  contractor of the terms of the city service contract; (b)
 Such failure shall be determined by the contracting agency; and (c)  If,
 within  thirty  days  after or pursuant to the terms of the city service
 contract, whichever  is  longer,  the  city  service  contractor  and/or
 subcontractor receives written notice of such a breach, the city service
 contractor  fails  to cure such breach, the city shall have the right to
 pursue any rights or remedies available under  the  terms  of  the  city
 service  contract  or under applicable law, including termination of the
 contract.
   § 5. This act shall take effect one year after it shall have become  a
 law.