NY State Senate Bill 2025-S2536

Senate Bill S2536

2025-2026 Legislative Session

Relates to the inclusion of certain off-site custom fabrication as public work for the purposes of payment of prevailing wage

download bill text pdf

Current Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 21, 2025	referred to labor

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2025-S2536 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §220, Lab L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8963
2023-2024: S5475

2025-S2536 (ACTIVE) - Summary

Ensures that construction and fabrication done off of a public work site for specific use only in a public work project be compensated at the prevailing wage rate.

2025-S2536 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2536

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the labor law, in relation to inclusion of certain off-
site custom fabrication as public work for the purposes of payment of
prevailing wage; and providing for the repeal of certain provisions upon
expiration thereof

 
PURPOSE:

To ensure that construction and fabrication done off the public work
site for specific use only in a public work project be compensated at
the prevailing wage rate.

 
SUMMARY OF PROVISIONS:

Section 1 states the legislative findings and intent.

Section 2 adds a new paragraph (f) to subdivision 3 of Section 220 of
the Labor Law to provide that the prevailing wage law shall apply to the

fabrication of exterior or interior wall panel systems, the fabrication
of woodwork, cases, cabinets or counters and the fabrication of plumb-
ing, heating, cooling, ventilation or exhaust duct systems, and mechan-
ical insulation solely and specifically designed and engineered for
installation in the construction, repair or renovation of a building
which is the subject of a contract to which the state, a municipal
corporation, a public benefit corporation or a commission appointed
pursuant to law is a party.  Further, the department of jurisdiction
shall be required to report to the fiscal officer the intention to
contract for custom, off-site fabrication of any materials on all
contacts which may include the employment of laborers, workers, or
mechanics in the application to the fiscal officer for the approval of
such contract. The department of jurisdiction shall also have reporting
requirements that the fiscal officer must make available to the public
through its website.

Section 3 is the effective date.

 
JUSTIFICATION:

The courts have ruled that prevailing wages for public work should be
based on what governmental entity is requiring and contracting for said
work. By adding custom fabrication to the prevailing wage law we are
extending the protections of section 220 to skilled workers off the job
site, ensuring that their wages are fair and equitable. It has become
clear over the last several years that some unscrupulous contractors are
circumventing the spirit and intent of prevailing wage law. Since
prevailing wage also creates fair bidding mechanisms for union and
nonunion workers, there should be an increase in the number of talented,
skilled workers willing to ply their trade for public contracts in
custom fabrication.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

The amendments would limit the application of the prevailing wage
requirements through the addition of a project-cost threshold and the
exclusion of projects receiving federal funds that trigger the federal
rules for wage requirements. The amendments would also clarify that the
drafting of technical drawings and plans would be considered covered
work under the bill, expand the reporting requirements, and alter the
effective date language.

 
LEGISLATIVE HISTORY:

2023-2024: S.5475-B - REPORTED AND COMMITTED TO FINANCE/A.373-B - Passed
Assembly

2021-2022: S.8963 - Reported and Committed to Finance/A.8494-A Reported
and Referred to Ways and Means

 
STATE AND LOCAL FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act would take effect on the sixtieth day after it shall have
become a law and would apply only to those contracts put out to bid on
or after such effective date; provided, however, that subparagraph (i)
of paragraph (f) of subdivision 3 of section 220 of the labor law, as
added by section two of this act, would expire and be deemed repealed
upon the ruling of a court of competent jurisdiction that the require-
ments of such subparagraph are unenforceable on fabricators located
outside the state; provided, further, that the commissioner of labor
would notify the legislative bill drafting commission upon the occur-
rence of such a court ruling in order that the commission may maintain
an accurate and timely effective data base of the official text of the
laws of the state of New York in furtherance of effectuating the
provisions of section.

2025-S2536 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2536
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2025
                                ___________
 
 Introduced  by Sens. JACKSON, ADDABBO, COMRIE, FERNANDEZ, HINCHEY, HOYL-
   MAN-SIGAL, KAVANAGH, KRUEGER, MATTERA, MAYER, PALUMBO, PARKER,  RAMOS,
   SERRANO,  SKOUFIS,  STAVISKY,  WEIK -- read twice and ordered printed,
   and when printed to be committed to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to inclusion of certain  off-
   site  custom fabrication as public work for the purposes of payment of
   prevailing wage; and providing for the repeal  of  certain  provisions
   upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and intent. The legislature finds  and
 declares  that  the  prevailing wage law was established to provide fair
 and equitable working conditions, wages and supplementary  benefits  for
 persons employed on public works construction projects.
   The  legislature  further  finds  and  declares that there are growing
 number of instances where custom fabricated materials are fabricated off
 the public work job site either to meet the unique specifications of the
 project subject to a  public  work  contract  or  for  the  contractor's
 convenience  or to evade the wage requirements imposed by the prevailing
 wage law.
   The legislature further finds and declares that in many instances  the
 prevailing  wage is not paid to persons involved in off-site fabrication
 of materials which are used specifically for public  works  projects  to
 the detriment of the workers at the site and the local economy where the
 public work is situated.
   The  legislature  further  finds and declares that, in effect, various
 custom fabricated materials on local public works construction  projects
 are being entirely outsourced to workers at a location or locations away
 from the project site or in foreign jurisdictions, thereby intentionally
 evading the payment of the prevailing wage and benefit package by elimi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00331-01-5
 S. 2536                             2

 
 nating  the  employment  of  workers  at  the site of the project to the
 detriment of those workers and the local economy.
   It  is the intent of the legislature that construction and fabrication
 done off the public work site for  specific  use  only  in  public  work
 projects be compensated at the prevailing wage rate.
   §  2.  Subdivision  3  of  section  220 of the labor law is amended by
 adding a new paragraph (f) to read as follows:
   (F) (I) FOR THE PURPOSES OF THIS SUBDIVISION  CONTRACTORS  OR  SUBCON-
 TRACTORS ENGAGED IN CUSTOM FABRICATION SHALL NOT BE REGARDED AS MATERIAL
 SUPPLIERS.  FOR THE PURPOSES OF THIS SUBDIVISION, A LEGAL DAY'S WORK FOR
 WHICH THE PREVAILING RATE OF WAGES FOR THE NEW YORK COUNTY IN WHICH  THE
 PUBLIC  WORKS PROJECT IS SITUATED SHALL BE PAID TO LABORERS, WORKERS AND
 MECHANICS SHALL INCLUDE CUSTOM FABRICATION  REGARDLESS  OF  WHETHER  THE
 CUSTOM  FABRICATION  OCCURS ON-SITE, OFF-SITE OR IN ANOTHER JURISDICTION
 OUTSIDE THE STATE.  IT SHALL BE A CONDITION OF THE  CONTRACT  CONCERNING
 ALL SUCH CUSTOM FABRICATION WORK THAT THE CONTRACTOR OR EMPLOYER AWARDED
 THE  PUBLIC  WORK  CONTRACT,  EXCEPT  WHERE THE PROJECT INCLUDES FEDERAL
 FUNDING THAT TRIGGERS FEDERAL  RULES  FOR  WAGE  REQUIREMENTS,  AND  ANY
 SUBCONTRACTOR  THERETO SHALL COVENANT TO PAY THE ON-SITE PREVAILING WAGE
 REQUIRED FOR WORKERS AT THE SITE OF THE PUBLIC  WORK  PROJECT  TO  THOSE
 WORKERS  PERFORMING  THE  CUSTOM FABRICATION WHERE A CONTRACT FOR CUSTOM
 FABRICATION EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS OR FOR  CONTRACTS
 WHERE  THE  CUMULATIVE ANNUAL TOTAL OF CONTRACTS PERFORMED BY THE CUSTOM
 FABRICATOR HAS EXCEEDED FIVE  HUNDRED  THOUSAND  DOLLARS.  IN  ADDITION,
 CUSTOM FABRICATORS WHO CHOOSE TO PERFORM A PUBLIC WORKS CONTRACT EXCEED-
 ING  TWO HUNDRED FIFTY THOUSAND DOLLARS OR WHO EXCEED FIVE HUNDRED THOU-
 SAND DOLLARS IN PUBLIC WORKS CONTRACTS IN TOTAL IN A SINGLE  YEAR  SHALL
 BE REQUIRED TO PAY THE ON-SITE PREVAILING WAGE TO THOSE WORKERS PERFORM-
 ING CUSTOM FABRICATION FOR SUBSEQUENT PUBLIC WORKS CONTRACTS, REGARDLESS
 OF  THE AMOUNT, THEREAFTER FOR AT LEAST ONE YEAR AND SHALL REGISTER WITH
 THE DEPARTMENT UNDER SECTION TWO HUNDRED TWENTY-I OF  THIS  ARTICLE  AND
 REMAIN  REGISTERED  FOR AT LEAST ONE YEAR IN ORDER TO QUALIFY TO PERFORM
 FUTURE CUSTOM FABRICATION WITH REGARD TO PUBLIC WORKS  PROJECTS.    EACH
 CONTRACTOR  OR SUBCONTRACTOR WHO EMPLOYS WORKERS OFF-SITE FOR THE CUSTOM
 FABRICATION WORK RELATED TO A PUBLIC WORK PROJECT SHALL MAINTAIN  CERTI-
 FIED PAYROLLS FOR THOSE WORKERS AND PROVIDE SUCH PAYROLLS, WITH ORIGINAL
 CERTIFICATIONS,  TO THE DEPARTMENT AT LEAST ONCE EVERY THIRTY DAYS.  FOR
 THE PURPOSES OF THIS SUBDIVISION THE  TERM  "CUSTOM  FABRICATION"  SHALL
 INCLUDE,  BUT NOT BE LIMITED TO, THE FABRICATION OF EXTERIOR OR INTERIOR
 WALL PANEL SYSTEMS, THE FABRICATION  OF  WOODWORK,  CASES,  CABINETS  OR
 COUNTERS  AND THE FABRICATION OF ELECTRICAL, PLUMBING, HEATING, COOLING,
 VENTILATION OR EXHAUST DUCT SYSTEMS INCLUDING THE DRAFTING OF  TECHNICAL
 DRAWINGS  AND  PLANS,  AND MECHANICAL INSULATION SOLELY AND SPECIFICALLY
 DESIGNED AND ENGINEERED FOR INSTALLATION IN THE CONSTRUCTION, REPAIR  OR
 RENOVATION OF A BUILDING WHICH IS THE SUBJECT OF A CONTRACT TO WHICH THE
 STATE,  A  DEPARTMENT  OF  THE STATE, A BOARD OR OFFICER IN THE STATE, A
 MUNICIPAL CORPORATION, A PUBLIC  BENEFIT  CORPORATION  OR  A  COMMISSION
 APPOINTED PURSUANT TO LAW IS A PARTY.
   (II) THE DEPARTMENT OF JURISDICTION, AS DEFINED IN SUBDIVISION THREE-A
 OF  THIS  SECTION  AND  INCLUDING  ANY ENTITY TO WHOM SUCH DEPARTMENT OF
 JURISDICTION DELEGATES THEIR AUTHORITY, SHALL BE REQUIRED TO  REPORT  TO
 THE FISCAL OFFICER THE INTENTION TO CONTRACT FOR CUSTOM, OFF-SITE FABRI-
 CATION  OF  ANY  MATERIALS  ON  ALL CONTRACTS, REGARDLESS OF THE AMOUNT,
 WHICH MAY INCLUDE THE EMPLOYMENT OF LABORERS, WORKERS  OR  MECHANICS  IN
 THE APPLICATION TO THE FISCAL OFFICER FOR THE APPROVAL OF SUCH CONTRACT.
 THE DEPARTMENT OF JURISDICTION'S REPORT SHALL STATE THE NAME AND ADDRESS
 S. 2536                             3
 
 OF  THE  OFF-SITE, CUSTOM FABRICATOR, IDENTIFY THE CUSTOM MATERIALS THAT
 ARE BEING FABRICATED OFF-SITE AND THE QUANTITY  THEREOF,  THE  ESTIMATED
 AND  ACTUAL  COST OF THE OFF-SITE FABRICATION, INCLUDING THE TRANSPORTA-
 TION  OF  THE MATERIALS TO THE SITE OF THE WORK AND THE ESTIMATED NUMBER
 OF WORKERS EMPLOYED TO COMPLETE THE CUSTOM FABRICATION AT  THE  OFF-SITE
 LOCATION.  UPON  RECEIPT OF THE DEPARTMENT OF JURISDICTION'S REPORT, THE
 FISCAL OFFICER SHALL MAKE AVAILABLE SAID REPORT TO  THE  PUBLIC  THROUGH
 ITS WEBSITE AND, SIMILARLY, MAINTAIN AND PUBLISH ON ITS WEBSITE ALL DATA
 SPECIFIED HEREIN FOR EACH CUSTOM FABRICATOR.
   (III) THE FISCAL OFFICER SHALL PRODUCE AN ANNUAL REPORT ON THE ECONOM-
 IC  IMPACT  TO THE STATE BUSINESSES AND RESIDENTS DUE TO OFF-SITE FABRI-
 CATION.
   § 3. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law and shall apply only to those contracts put out to bid
 on  or  after  such effective date; provided, however, that subparagraph
 (i) of paragraph (f) of subdivision 3 of section 220 of the  labor  law,
 as added by section two of this act, shall expire and be deemed repealed
 upon  the  ruling of a court of competent jurisdiction that the require-
 ments of such subparagraph  are  unenforceable  on  fabricators  located
 outside  the  state;  provided,  further, that the commissioner of labor
 shall notify the legislative bill drafting commission  upon  the  occur-
 rence  of  such a court ruling in order that the commission may maintain
 an accurate and timely effective data base of the official text  of  the
 laws  of  the  state  of  New  York  in  furtherance of effectuating the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.

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