December 30, 2022
Albany, NY

Governor Hochul Signs Legislation to Protect Integrity of Public Work Projects

Governor Hochul Signs Legislation to Protect Integrity of Public Work Projects

Legislation (S.5994C/A.1338C) Establishes Registration System for Contractors and Subcontractors Engaged in Public Work and Covered Private Projects to Better Enforce Labor Laws and Regulations

Governor Kathy Hochul today signed legislation (S.5994C/A.1338C) into law, establishing a registration system for contractors and subcontractors engaged in public work and covered private projects in order to provide additional transparency and better enforce existing labor laws and regulations.

"This legislation will help ensure transparency, reduce fraud and ensure taxpayer money goes to contractors who treat their workers with dignity and respect," Governor Hochul said. "Our workers are the engine of our economy and we must do everything we can to protect their rights."

Legislation (S.5994C/A.1338C) creates a registration system for contractors and subcontractors that bid on contracts for public work projects and commence work on certain covered private projects that receive public subsidies in New York. This new law requires contractors and subcontractors to register with the Department of Labor by providing a series of disclosures about their businesses every two years. The Department of Labor will determine whether a contractor or subcontractor is fit to register, based on previous labor law and workers compensation law violations, including prevailing wage requirements, and create a publicly available online database. This law will ensure state and local entities engage with contractors and subcontractors that will abide by New York labor laws and regulations.

State Senator Sean Ryan said, "I thank Governor Hochul for signing this important legislation which protects New Yorkers by ensuring that their tax dollars are only going toward projects where the contractors treat their employees fairly. This law will help prevent bad actors from landing public works projects, and it will ensure that law-abiding companies aren't at a competitive disadvantage in the bidding process."

Assemblymember William B. Magnarelli said, "This new registration system will ensure that contractors and subcontractors who bid on public works projects are good actors and treat workers properly. The idea for this bill came directly from workers. I am pleased to see an idea proposed to me by those in the field become law."

New York State Department of Labor Commissioner Roberta Reardon said, "Establishing this registration system and database is an essential step in ensuring our public projects, paid for with taxpayer money, are performed by contractors and subcontractors who follow New York's labor laws. These laws protect workers' safety and guarantee a fair day's pay for a fair day's work, and I applaud Governor Hochul for signing legislation that will allow the state and localities to evaluate a contractor's history when awarding a public project."

Gary LaBarbera, President of the New York State Building and Construction Trades Council, said, "Far too often in the construction industry unscrupulous contractors are able to cheat workers through a lack of transparency and accountability. This legislation will play a large role in counteracting this trend and allow New York to protect our hardworking tradesmen and tradeswomen by ensuring that contractors receiving taxpayer revenue and public funds for their projects meet the very basic requirements for demonstrating that they are an upstanding business. With the Department of Labor tasked with overseeing thousands of public projects, this registry will provide another tool for enforcing prevailing wage laws and ensuring construction workers are treated fairly on the jobsite. We thank Governor Hochul for signing this important legislation, along with legislative leadership and bill sponsors Senator Ryan and Assemblyman Magnarelli, who pushed this crucial initiative forward."

Bill Banfield, Assistant Executive Secretary-Treasurer, North Atlantic States Regional Council of Carpenters, said, "The Carpenters applaud Governor Kathy Hochul for signing Contractor Registration into law. Contractors who purposefully disregard prevailing wage laws cheat workers, taxpayers, and the integrity of the construction industry. The Contractor Registration law that the Governor signed today will ensure that when public money is spent, law abiding contractors are the ones doing that construction work. Fairness in the construction industry starts with accountability."

Contact the Governor’s Press Office

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