Recent changes to New York Labor Law (NYLL) and General Business Law (GBL) extend liability to construction contractors for wage violations committed by subcontractors at any level of a project, with few exceptions.
In general, the NYLL contains significant worker protections and provides for recovery for workers who are not properly compensated. Workers must be paid at or above the minimum wage, receive overtime if they are covered under New York’s overtime provisions, and be provided with certain breaks and sick leave. Workers also must receive wage notices upon hire and wage statements with every payment.
Damages available under section 198 for violations of the NYLL include:
Recovery of unpaid wages (up to 300% of unpaid wages for willful violations)
Penalties for failing to provide requisite wage notices and statements
Attorneys’ fees.
Many contractors already take steps to ensure that their own employees are paid in accordance with the NYLL and provide them with the requisite wage notices and statements. However, as discussed below, contractors now must ensure not only their own compliance with the NYLL but also the compliance of subcontractors at all levels on their projects.
The revisions to section 198-e of the NYLL provide that contractors will be held jointly and severally liable for subcontractors’ failure to pay proper wages as defined under the NYLL. This means that, for example, even if the primary contractor...
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