On May 28, 2026, the Associated General Contractors of New York State (AGC of NY) and several other trade associations filed a complaint in the U.S. District Court for the Northern District of New York seeking injunctive relief to block enforcement of New York’s new prevailing wage law governing off-site custom fabrication. On June 8, 2026, the court entered a consent order preliminarily enjoining enforcement of the law pending further proceedings.
Background
In December 2025, Governor Kathy Hochul signed legislation amending New York Labor Law Section 220 to expand the definition of “public work” to include certain “custom fabrication” performed off-site, even when the fabrication takes place outside New York. As we previously reported, the law was originally set to take effect on June 18, 2026, and applies to contracts put out to bid on or after that date.
Prior to this amendment, New York regulators advised that prevailing wage requirements applied to off-site fabrication only if the work was “usually and customarily performed at the project site.” Under that framework, off-site fabricators were often treated as material suppliers and fell outside the statute's coverage.
The new law significantly changes this landscape. As originally enacted, the amendment broadly defined “custom fabrication” as including “but not limited to” the following categories:
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