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Resources for New York prevailing wage contractors

 

FREQUENTLY ASKED QUESTIONS ON NEW YORK PREVAILING WAGE

Whether you are just starting out as a prevailing wage contractor or just looking to keep yourself updated, we have compiled these resources about state prevailing wage. Here are the most common questions of prevailing wage contractors and workers to help expand your knowledge!

As mandated by New York’s Labor Law, contractors and subcontractors are required to pay prevailing wage rates and fringe benefits to all workers and employees who work under a public work contract. Prevailing wage rates are determined for the locality where the work is performed. For more information on New York’s prevailing wage requirement and regulations, read on below. For help with fully compliant fringe benefit plans in New York please get in-touch via email or give us a call today!

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Where can I find data about New York City’s prevailing wage rates?

Prevailing wage rates and benefits schedule for contractors who work in New York City for government contracts are published in the New York City Comptroller’s website. These rates are updated and published every 1st of July.

How is the hourly cash credit supplements provided in New York computed? Is there a formula for this?
To calculate for the hourly cash credit, the Department of Labor’s regulation on supplements provides the formula for making that determination.
a) Determine the actual annual contribution made for supplements for each employee.
b) Determine the total annual hours worked by each employee on both public and private work.
c) Divide the actual contribution or cost in (a) by the total number of hours worked in (b).
After determining the credit, the difference between the hourly credit amount and the supplement amount, if any, must Should there be a difference between the required supplement amount and the hourly credit amount once credit is determined, the same must be computed based on the employee’s weekly wages.
If the total hours worked by the employee is not and cannot be provided by the employer, the Commissioner of Labor will:
1. Divide the amount in (a) above by 2080 hours (8 hours per day x 5 days per week x 52 weeks); or
2. Divide the amount in (a) above) by 1820 hours (7 hours per day x 5 days per week x 52 weeks) where proof is provided establishing that the employee worked only 7 hours per day.
Should contributions to bona fide benefit plans be annualized in New York?
All contributions to your employees’ benefit plans must be annualized, without any exceptions. A contribution can be made to a bona fide benefit plan on behalf of the employee. If the latter is chosen and contributions are not made on an hourly basis for all hours worked by the employee, both public and private, then the hourly cash credit the employer receives for supplement contributions must be determined (i.e. annualization).
How can prevailing wage supplements be provided to New York prevailing wage workers?
Prevailing Wage supplements can be provided to the employee in the following ways:
1. Paid in cash
2. Through irrevocable contributions to a bona fide fund, plan or program
3. Combination of the first two methods
Are contractors and subcontractors required to submit payroll records in New York?
“Every contractor, and subcontractor, shall submit to the department of jurisdiction within thirty days after issuance of its first payroll, and every thirty days thereafter, a transcript of the original payroll records, as provided by this Article, subscribed and affirmed as true…” (Section 220, subd. 3-a)
Where can we get prevailing wage forms in New York?
The Bureau of Public Works website has all the necessary prevailing wage forms and documentations.
Are there any documentary requirements for prevailing wage contractors in New York?
All contractors and subcontractors must keep a record of original payrolls and transcripts that show the number of hours and days worked by each wage worker. These documents must also contain the occupation the worker has worked, the hourly wages, and the supplements provided.
Can my fringe obligation be reduced through training apprentices? If yes, how is the cost of training be determined?
Cost of training vary by program, locality and project. Please refer to your program for specific instructions.
Where can I find apprentice rates applicable in New York?
Information on apprentice rates can be found in the New York Department of Labor website. The apprentice rates can be found on the same wage decision as the journeyman wages by locality.
Is there a requirement when I pay for apprentice rates in New York?
The employee must be individually registered in an apprenticeship program that is duly registered with the Commissioner of Labor. The apprenticeship program must also be registered by the employer with the DOL.
Does New York have any required hourly training rate that I must pay even if my company doesn’t hire apprentices?
None, there is no mandated hourly training rate that you must pay, in the event that you do not hire apprentices.
What are the requirements if I will hire apprentices in New York?
Contractors who wish to employ and train apprentices have to register their apprenticeship program to the DOL and hire their own apprentices. If you are unable to qualify for a sponsored apprenticeship program, the ABC Merit Apprentice Alliance is an apprentice program for non-union contractors. It was created for contractors who cannot have their own sponsored program, but wish to bid on Prevailing Wage projects that require apprentices. The apprentice is trained by the ABC Merit Apprentice Alliance, but the contractor would hire them and train them. This alliance was created specifically to manage apprentices for non-union contractors.
Does New York require training of apprentices?
The state does not specifically require hiring of apprentices, but state agencies or municipalities may require apprentices for each project. This varies by bidding area, municipality or project. Many projects in New York are PLA projects and must hire and train apprentices.
Where can I find any corrections and updates in the annual determination for New York?

You can find any update and changes in the changes and/or corrections section of the Bureau of Public Works website.

Any error corrections or updates in the annual determination will be posted to the Department’s website on the first business day of each month. You are then required to pay for these updated rates, retroactive to July 1st.

Does the state of New York increase prevailing wage requirements? If yes, is there a record of the increase’s effectivity date?
When reviewing a prevailing wage schedule for a particular occupation, check the dates above the column rates. These refer to the effectivity dates of additional adjustments on the prevailing wage.
Is there a record of all the appropriate New York prevailing wage decisions and updates?

The Bureau of Public Works website has the complete list for all wage decisions to be utilized by each locality. Prime contractors are required to provide subcontractors with Prevailing Wage and supplements schedules. It is a violation for any contractor to fail to provide to its subcontractor a copy of the schedule of wages and supplements, as specified in the contract.

How are New York’s prevailing wage rates determined?
Bona fide labor organizations and employers from the private sector (who employ at least 30% of workers in the same occupation) enter bargaining agreements to determine the prevailing wage rates in a locality.
How often are the prevailing wage rates reviewed and determined in New York? When do updates take effect?

The prevailing rate of wages and supplements are determined annually. This is done every 1st of July of each year and are effective through June 30 of the next year.

Which government agency handles compliance and enforcement of prevailing wage in New York?
The Commissioner of Labor enforces the prevailing wage requirements on all government projects, with the exception of projects led by the City of New York. The New York City Comptroller is responsible for the enforcement of prevailing wage regulations in the City of New York.
What state entities govern prevailing wage requirements in New York?
The Bureau of Public Works enforces New York Prevailing Wage regulations and covers all public work projects, except Federal or HUD projects. Federal or HUD projects are under the jurisdiction of the New York Department of Labor.

KNOW MORE ABOUT NEW YORK’S PREVAILING WAGE REGULATIONS FROM ARCHER JORDAN

Each state and city has its own prevailing wage regulations and requirements that may be unique to them. As a contractor, it can be overwhelming to study these laws and provisions.
To make sure that you have everything covered in terms of your workers’ prevailing wage and supplements, work with ARCHER JORDAN. Our team will make sure that your business will be compliant to each state and municipality regulations, and you can focus in the implementation of your public works projects.

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