Last updated on July 23rd, 2024
If you bid on or provide services for a public works project, you need to be aware of how prevailing wage and an amendment related to the hauling of aggregate supply construction materials (a.k.a. the 50-mile radius provision) may impact your business effective July 1.
Prevailing Wage
New York’s labor law requires contractors and subcontractors to pay prevailing wage for employees working on a public works project, based on the locality where the work is performed. Public works include construction, maintenance, and improvement projects funded and executed by a federal, state, or local government.
The NYS DOL sets the prevailing wage based on hourly wage and fringe benefit data for similar jobs and distinct job classifications in a region. It equals the sum of a base hourly wage rate plus a fringe benefit rate. 2024 prevailing wage schedules by county for general and residential projects were released July 1 and can be found here.
Prevailing wage applies regardless of union status, although it is usually equivalent to union wages and benefits.
The New 50-Mile Radius Provision Effective July 1
New York’s 50-mile radius provision of 12 NYCRR 222.2(c) took effect July 1. Contractors and subcontractors must factor this into their labor costs on all public works projects solicited on or after July 1.
Of particular note is an amendment related to the hauling of aggregate supply construction materials. The amended rule reads: “Prevailing wage shall be paid for work performed on a public works worksite pursuant to this section for any work involving the delivery to and hauling from such worksites of aggregate supply construction materials, as well as any return hauls, whether empty or loaded and any time spent loading/unloading.”
Visit the NYS DOL website and scroll down to “Hauling of Aggregate Supply Construction Materials” for more information. Please note that RBT CPAs is not a law firm. We are sharing this information to ensure you are aware that the provision took effect on July 1. Additional guidance is supposed to be forthcoming. In the meantime, if you have any questions or need direction or advice, we strongly suggest you contact your legal counsel.
On a Related Note…
During the New York legislative session that had just ended, a new bill was introduced regarding prevailing wage and the delivery and supply of construction materials. It would expand existing prevailing wage requirements in Nassau, Suffolk, and Westchester counties to include the delivery and supply of concrete and asphalt, and would take effect immediately upon its passage. While the legislative session ended with the bill in the Senate’s Committee Assembly, we just want to make sure you’re aware of it in case it moves forward in the future.
As you focus on the many aspects of running a successful business, including compliance, remember that RBT CPAs is always here to support your accounting, advisory, audit, and tax needs. Contact us any time to learn how we can be Remarkably Better Together.
Please note: RBT CPAs is not a law firm and this article is for informational purposes only. Should you need legal advice, contact your legal counsel.
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