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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2747A Revised 06/13/25
SPONSOR: Bronson 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
PURPOSE OR GENERAL IDEA OF BILL:
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 of this bill would require as a contract condition that any
contractors and subcontractors doing custom fabrication work on public
works projects must pay prevailing wages regardless of whether such work
occurs on-site, off-site, or in another jurisdiction outside the state.
Custom fabrication would include fabrication of wall panel systems
(exterior and interior), woodwork, electrical, plumbing, heating, cool-
ing, duct systems (ventilation and exhaust), rebar cages, and certain
mechanical insulations. Projects that include federal funding that trig-
gers federal rules for wage requirements would not be included in these
new requirements.
Covered contractors and subcontractors would be required to maintain
certified payrolls and provide such payrolls to the Department of Labor
at least annually or on request. The department of jurisdiction would
also be required to report to the fiscal officer their intention to
contract for off-site custom fabrication.
Section 3 of this bill sets the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
A print amendment removed project cost thresholds, made various clarifi-
cations to what conditions off-site custom fabrication work would be
covered under, removed reporting requirements by the Department of
Labor, and modified 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 apply their trade for public contracts in
custom fabrication.
PRIOR LEGISLATIVE HISTORY:
2023-2024: A.373-B - passed Assembly
2021-2022: A.8494-A - reported to Ways and Means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act would take effect on the 180th day after it becomes law and
would apply only to those contracts put out to bid on or after such
effective date. Any rule or regulation necessary for the implementation
of this act on its effective date would be authorized to be made imme-
diately.
STATE OF NEW YORK
________________________________________________________________________
2747--A
2025-2026 Regular Sessions
IN ASSEMBLY
January 22, 2025
___________
Introduced by M. of A. BRONSON, TAYLOR, ROZIC, CRUZ, GLICK, ROSENTHAL,
SIMONE, BORES, GONZALEZ-ROJAS, SEAWRIGHT, BENEDETTO, REYES, WEPRIN,
BRABENEC, RAGA, SLATER, BRAUNSTEIN, DINOWITZ, DURSO, STECK, RA,
EPSTEIN, RAJKUMAR, GIBBS, TAPIA, HYNDMAN, BERGER, LEE, BURDICK, JACOB-
SON, K. BROWN, BENDETT, REILLY, McDONOUGH, PHEFFER AMATO, MIKULIN,
SANTABARBARA, STERN, OTIS, GRIFFIN, COLTON, KAY, WILLIAMS, MEEKS,
SHRESTHA, LUNSFORD, CLARK, BURROUGHS, SHIMSKY, LUPARDO -- Multi-Spon-
sored by -- M. of A. LEVENBERG -- read once and referred to the
Committee on Labor -- reported and referred to the Committee on Ways
and Means -- reported and referred to the Committee on Rules -- Rules
Committee discharged, bill amended, ordered reprinted as amended and
recommitted to the Committee on Rules
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 3 of section 220 of the labor law is amended
2 by adding a new paragraph (f) to read as follows:
3 (f) (i) For the purposes of this subdivision contractors or subcon-
4 tractors engaged in custom fabrication shall not be regarded as material
5 suppliers. For the purposes of this subdivision, a legal day's work for
6 which the prevailing rate of wages for the New York county in which the
7 public works project is situated shall be paid to laborers, workers and
8 mechanics shall include custom fabrication regardless of whether the
9 custom fabrication occurs on-site, off-site, or in another jurisdiction
10 outside the state where the custom fabrication constitutes a significant
11 portion of the building or work, it shall be a condition of the contract
12 concerning all such custom fabrication work that the contractor or
13 employer awarded the public work contract, except where the project
14 includes federal funding that triggers federal rules for wage require-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00331-03-5
A. 2747--A 2
1 ments, and any subcontractor thereto shall pay the on-site prevailing
2 wage required for workers at the site of the public work project to
3 those workers performing the custom fabrication. To perform a public
4 works contract each contractor or subcontractor who employs workers
5 off-site for the custom fabrication work related to a public work
6 project shall maintain certified payrolls for those workers and provide
7 such payrolls, with original certifications, to the department at least
8 annually and upon request, and shall comply with section two hundred
9 twenty-i of this article, as applicable. For the purposes of this
10 subdivision the term "custom fabrication" shall include, but not be
11 limited to, the fabrication of exterior or interior wall panel systems,
12 woodwork, electrical, plumbing, heating, cooling, ventilation or exhaust
13 duct systems, rebar cages, and mechanical insulation solely and specif-
14 ically designed and engineered for installation in the construction,
15 repair or renovation of a building which is the subject of a contract to
16 which the state, a department of the state, a board or officer in the
17 state, a municipal corporation, a public benefit corporation or a
18 commission appointed pursuant to law is a party. For the purposes of
19 this subdivision, a "significant portion of building or work" means that
20 portions or modules of the building or work, as opposed to smaller
21 prefabricated components, are delivered to the place where the building
22 or work will remain, with minimal construction work remaining other than
23 the installation and/or assembly of the portions or modules.
24 (ii) The department of jurisdiction, as defined in subdivision three-a
25 of this section and including any entity to whom such department of
26 jurisdiction delegates their authority, shall be required to report to
27 the fiscal officer the intention to contract for custom, off-site fabri-
28 cation of any materials on all contracts, regardless of the amount,
29 which may include the employment of laborers, workers or mechanics in
30 the application to the fiscal officer for the approval of such contract.
31 The department of jurisdiction's report shall state the name and address
32 of the off-site, custom fabricator, identify the custom materials that
33 are being fabricated off-site and the quantity thereof, the estimated
34 and actual cost of the off-site fabrication, and the estimated number of
35 workers employed to complete the custom fabrication at the off-site
36 location.
37 § 2. This act shall take effect on the one hundred eightieth day after
38 it shall have become a law and shall apply only to those contracts put
39 out to bid on or after such effective date. Effective immediately, the
40 addition, amendment and/or repeal of any rule or regulation necessary
41 for the implementation of this act on its effective date are authorized
42 to be made and completed on or before such effective date.
