14/06/2021
New York state legislature passes construction wage theft bill | Construction Dive
upstream or downstream of themselves, Jim Barlow, attorney at
Cotney Attorneys & Consultants, told Construction Dive.
Wage theft is the denial of salary payment or other benefits to an
employee by an employer. Some estimate wage theft in New York
costs workers as much as $1 billion a year, Barlow said.
The New York State Building & Construction Trades Council,
which represents over 200,000 unionized employees, called the
bill's passage a "monumental victory for working people."
"From day one, this legislation was all about putting the interests
of working people ahead of those of unscrupulous contractors in
the construction industry," Gary LaBarbera, president of the
Trades Council, said in a statement shared with Construction Dive.
For workers, Barlow said, recouping wages would be much easier,
as a contractor cannot shield itself from liability by requiring
parties to sign waivers, Barlow said. Additionally, should a poorly
funded subcontractor go out of business, an unpaid worker could
still bring suit to recover wages against the contractor.
The Associated General Contractors of New York State, which
represents construction employers, opposes the legislation.
According to Mike Elmendorf, CEO of AGC NYS, the group
supports wage theft prevention, but finds the legislation flawed
and problematic. The bill means a GC is liable for up to three years
after a project has been completed, even if the wage theft was by a
subcontractor tiers down, and not detected by the GC.
"It creates an unmanageable level of risk for GCs," Elmendorf said,
adding that the legislation could complicate contractors' abilities to
insure projects and slow payments to subcontractors, while raising
the cost of construction.
"We think a requirement that the GC be given clear notice while
the contract is still active of any non-payment would have made
much more sense and been more effective," Elmendorf said.
https://www.constructiondive.com/news/new-york-state-legislature-passes-construction-wage-theft-bill/601450/?fbclid=IwAR1TwaxvIbn6qO-nuuM…
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