-  This bill is not active in this session.
 

A07472 Summary:

BILL NOA07472
 
SAME ASNo same as
 
SPONSORBing (MS)
 
COSPNSRWright, Lopez V, Abbate, Gottfried, Dinowitz, Ortiz, Kavanagh, Hevesi, Rosenthal, Perry, Colton, Lancman, Jeffries, Weisenberg, Rivera P, Titone, Camara, Bronson, Roberts, Schimel, Markey, Hooper, Weprin, Miller M, Stevenson, Moya, Castro, Linares, Maisel, Abinanti, Gibson, Ramos, Russell, Aubry, Magnarelli
 
MLTSPNSRArroyo, Barron, Benedetto, Braunstein, Brook-Krasny, Clark, Cook, Crespo, DenDekker, Glick, Heastie, Jacobs, Lavine, McEneny, Meng, O'Donnell, Rivera J, Rivera N, Robinson, Saladino, Scarborough, Simotas, Spano
 
Amd Art 9 Head, SS230, 231, 235, 237 & 238, Lab L
 
Relates to prevailing wages for service workers; amends certain definitions, payroll filing requirements and penalties for violations thereof.
Go to top    

A07472 Actions:

BILL NOA07472
 
05/06/2011referred to labor
07/11/2011enacting clause stricken
Go to top

A07472 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

A07472 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7472
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 6, 2011
                                       ___________
 
        Introduced by M. of A. BING, WRIGHT, V. LOPEZ, ABBATE, GOTTFRIED, DINOW-
          ITZ,  ORTIZ,  KAVANAGH,  HEVESI,  ROSENTHAL, PERRY, COLTON, LANCMAN --
          Multi-Sponsored by -- M. of A.  CLARK, COOK, HEASTIE, McENENY --  read
          once and referred to the Committee on Labor
 
        AN  ACT  to  amend  the  labor  law, in relation to prevailing wages for
          service workers
 

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. The article heading of article 9 of the labor law, as added
     2  by chapter 777 of the laws of 1971, is amended to read as follows:
     3              PREVAILING WAGE FOR [BUILDING] SERVICE EMPLOYEES
     4    §  2.  Subdivisions  1,  2, 3, 4, 6, 8, 9 and 10 of section 230 of the
     5  labor law, as added by chapter 777 of the laws of 1971, subdivision 1 as
     6  amended and subdivision 9 as added by chapter 542 of the laws  of  1984,
     7  subdivision 4 as amended by chapter 678 of the laws of 2007 and subdivi-
     8  sion  10  as added by chapter 547 of the laws of 1998, are amended and a
     9  new subdivision 15 is added to read as follows:
    10    1. "[Building service]  Service  employee"  or  "employee"  means  any

    11  person performing janitorial, or security service work for a contractor,
    12  under  contract  with a public agency which is in excess of two thousand
    13  dollars and the principal  purpose  of  which  is  to  furnish  services
    14  through  the  use  of  service employees, or any other person performing
    15  work in connection with the care or maintenance of an existing building,
    16  or in connection with the transportation of office furniture  or  equip-
    17  ment  to or from such building, or in connection with the transportation
    18  and delivery of fossil fuel to such building, for a contractor  under  a
    19  contract  with  a public agency which is in excess of [one] two thousand
    20  [five hundred] dollars and the principal purpose of which is to  furnish

    21  services   through  the  use  of  [building]  service  employees.    The
    22  provisions of this article shall not apply to any employee  directly  or
    23  indirectly  performing  work  for or on behalf of a business improvement
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10637-02-1

        A. 7472                             2
 
     1  district unless such work would have been subject to the requirements of
     2  this article as in effect on January first, two thousand  eleven.    The
     3  preceding  sentence  shall  not be construed to affect any determination

     4  hereafter  by the fiscal officer or a court of competent jurisdiction as
     5  to the applicability or inapplicability to such work  of  such  require-
     6  ments.
     7    "[Building  service]  Service employee" or "employee" includes, but is
     8  not limited, to, watchman, guard,  doorman,  building  cleaner,  porter,
     9  handyman, janitor, gardener, groundskeeper, stationary fireman, elevator
    10  operator  and  starter,  window cleaner, and occupations relating to the
    11  collection of garbage or refuse, and to  the  transportation  of  office
    12  furniture  and  equipment,  and  to  the  transportation and delivery of
    13  fossil fuel but does not include clerical, sales, professional,  techni-
    14  cian and related occupations.
    15    "[Building  service]  Service  employee"  or  "employee" also does not

    16  include any employee to  whom  the  provisions  of  articles  eight  and
    17  [eight-a] eight-A of this chapter are applicable.
    18    2.  "[Building  service]  Service work" [or "service work"] means work
    19  performed by a [building] service employee, but does  not  include  work
    20  performed  for  a  contractor  under  a  contract  for the furnishing of
    21  services by radio, telephone, telegraph or  cable  companies[;  and  any
    22  contract  for  public  utility  services,  including  electric light and
    23  power, water, steam and gas] or janitorial or security work performed on
    24  the premises owned or operated by the power authority of  the  state  of
    25  New  York  unless  such  premises are jointly owned or operated with any

    26  non-governmental utility or substantially-owned or affiliated entity  of
    27  such public utility as defined in subdivision three of this section.
    28    3. "Public agency" means the state, any of its political subdivisions,
    29  a  public  benefit  corporation,  a public authority, including a public
    30  authority providing public utility services, or  commission  or  special
    31  purpose  district  board  appointed  pursuant  to  law, [and] a board of
    32  education, and any public utility that  distributes  electric  light  or
    33  power,  or gas or steam services at retail rates regulated by the public
    34  service commission pursuant to a franchise granted under the  provisions
    35  of  section sixty-eight or eighty-one of the public service law, and any

    36  substantially-owned affiliated entity of such public utility.
    37    4. "Contractor" means any employer who employs  employees  to  perform
    38  [building]  service work under a contract with a public agency and shall
    39  include any of the contractor's subcontractors.
    40    6. "Prevailing wage" means the wage determined by the  fiscal  officer
    41  to be prevailing for the various classes of [building] service employees
    42  in  the locality. In no event shall the basic hourly cash rate of pay be
    43  less than the statutory minimum wage established by article nineteen  of
    44  this  chapter, or, in a city with a local law requiring a higher minimum
    45  wage on city contract work, less than the minimum wage specified in such
    46  local law.
    47    8. "Fiscal officer" means the [industrial]  commissioner,  except  for

    48  [building]  service  work  performed by or on behalf of a city, in which
    49  case "fiscal officer" means the comptroller or other  analogous  officer
    50  of such city.
    51    9.  "Fossil  fuel" shall mean coal, petroleum products and fuel gases.
    52  "Coal" shall include bituminous coal, anthracite coal and lignite. "Fuel
    53  gases" shall include but not be limited to methane, natural gas,  lique-
    54  fied natural gas and manufactured fuel gases. "Petroleum products" shall
    55  include all products refined or rerefined from synthetic or crude oil or
    56  oil  extracted  from  other  sources,  including  natural  gas  liquids.

        A. 7472                             3
 
     1  [Provided that nothing in this subdivision shall  affect  the  exclusion
     2  for  public  utility  services  set  forth  in  subdivision  two of this
     3  section.]

     4    10.  "Substantially-owned  affiliated  entity"  shall  mean the parent
     5  company of the public utility, contractor or subcontractor, any  subsid-
     6  iary  of  the public utility, contractor or subcontractor, or any entity
     7  in which the parent of the public utility, contractor  or  subcontractor
     8  owns  more than fifty percent of the voting stock, or an entity in which
     9  one or more of the top five shareholders of the public utility, contrac-
    10  tor or subcontractor individually or collectively also owns  a  control-
    11  ling  share  of  the voting stock, or an entity which exhibits any other
    12  indicia of control over the public utility, contractor or  subcontractor
    13  or  over  which the public utility, contractor or subcontractor exhibits
    14  control, regardless of whether or not the controlling party  or  parties

    15  have  any  identifiable  or  documented ownership interest. Such indicia
    16  shall include: power or responsibility over employment decisions, access
    17  to and/or use of the relevant entity's assets  or  equipment,  power  or
    18  responsibility  over contracts of the entity, responsibility for mainte-
    19  nance or submission of certified payroll records, and influence over the
    20  business decisions of the relevant entity.
    21    15. "Person" shall mean a human being and shall include an "entity" as
    22  defined in this article, including, but not limited to a  contractor  or
    23  subcontractor.
    24    §  3. Subdivision 4 of section 230 of the labor law, as added by chap-
    25  ter 777 of the laws of 1971, is amended to read as follows:
    26    4. "Contractor" means any employer who employs  employees  to  perform

    27  [building] service work under a contract with a public agency, and shall
    28  include any of his subcontractors.
    29    §  4.  Subdivisions  1, 3, 4 and 5 of section 231 of the labor law, as
    30  added by chapter 777 of the laws of 1971 and subdivision 5 as amended by
    31  chapter 678 of the laws of 2007, are amended to read as follows:
    32    1. Every contractor shall pay a service employee under a contract  for
    33  [building]  service  work a wage of not less than the prevailing wage in
    34  the locality for the craft, trade or occupation of the service employee.
    35    3. Each contract for [building] service work shall contain as part  of
    36  the  specifications  thereof a schedule of the wages required to be paid
    37  to the various classes of service employees on such work, and each  such
    38  contract  shall further contain a provision obligating the contractor to

    39  pay each employee on such work not less than the wage specified for  his
    40  craft, trade or occupation in such schedule.
    41    4.  The  public agency, or appropriate officer or agent thereof, whose
    42  responsibility it is to prepare or direct the preparation of  the  plans
    43  and  specifications  for  a  contract for [building] service work, shall
    44  ascertain from such plans  and  specifications  the  classifications  of
    45  employees  to  be  employed  on  such work and shall file a list of such
    46  classifications with the fiscal officer, together with  a  statement  of
    47  the work to be performed. The fiscal officer shall determine the crafts,
    48  trades  and occupations required for such work and shall make a determi-
    49  nation of the wages required to be paid in the locality  for  each  such
    50  craft, trade or occupation. A schedule of such wages shall be annexed to

    51  and form a part of the specifications for the contract prior to the time
    52  of  the advertisement for bids on such contract and shall constitute the
    53  schedule of wages referred to in subdivision three of this section.
    54    5. Upon the award of a contract  for  [building]  service  work  by  a
    55  public  agency  other  than  a city, the contracting public agency shall
    56  immediately furnish to the commissioner: (a) the name and address of the

        A. 7472                             4
 
     1  contractor to whom the contract was  awarded;  (b)  the  date  when  the
     2  contract  was  awarded; and (c) the approximate consideration stipulated
     3  for in the contract.
     4    §  5. Subdivision 5 of section 231 of the labor law, as added by chap-
     5  ter 777 of the laws of 1971, is amended to read as follows:

     6    5. Upon the award of a contract  for  [building]  service  work  by  a
     7  public  agency  other  than  a city, the contracting public agency shall
     8  immediately furnish to the [industrial] commissioner: (a) the  name  and
     9  address of the contractor to whom the contract was awarded; (b) the date
    10  when  the  contract  was  awarded; and (c) the approximate consideration
    11  stipulated for in the contract.
    12    § 6. Paragraphs a and c of subdivision 2 and subdivision 7 of  section
    13  235  of the labor law, paragraph a of subdivision 2 and subdivision 7 as
    14  amended and paragraph c of subdivision 2 as added by chapter 547 of  the
    15  laws  of  1998, are amended and subdivision 2 is amended by adding a new
    16  paragraph g to read as follows:
    17    a. At the start of such investigation the fiscal  officer  may  notify

    18  the  financial officer of the public agency interested who shall, at the
    19  direction of the fiscal officer, forthwith withhold from any payment due
    20  to the contractor executing the contract sufficient money  to  safeguard
    21  the  rights of the service employees and to cover the civil penalty that
    22  may be assessed as provided herein, or, if there are insufficient moneys
    23  still due or earned to the contractor or subcontractor to safeguard  the
    24  rights  of the service employees and to cover the civil penalty that may
    25  be assessed as provided herein, the financial officer of  another  civil
    26  division  which  has  entered  or  subsequently enters into a [building]
    27  service work contract with the contractor or  subcontractor,  who  shall
    28  withhold  from any payment due the contractor or subcontractor executing
    29  any [building] service work, sufficient moneys to safeguard  the  rights

    30  of  the  service  employees  and  to cover the civil penalty that may be
    31  assessed as provided herein.
    32    c. The notice of withholding shall provide  that  the  fiscal  officer
    33  intends  to  instruct  the  financial  officer,  not  less than ten days
    34  following service of the notice by mail, to withhold  sufficient  moneys
    35  to  safeguard the rights of the service employees and to cover the civil
    36  penalty that may be assessed as provided herein, from  any  payment  due
    37  the  notified  party  under any [building] service work contract pending
    38  final determination. The notice of withholding shall provide that within
    39  thirty days following the date of the notice of withholding the notified
    40  party may, contest the withholding on the basis that the notified  party
    41  is  not a partner or one of the five largest shareholders of the subcon-

    42  tractor or contractor, an officer of the contractor or subcontractor who
    43  knowingly participated in the violation of this article, a  substantial-
    44  ly-owned  affiliated entity or successor. If the notified party fails to
    45  contest the notice of withholding,  or  if  the  fiscal  officer,  after
    46  reviewing  the  information  provided  by  the  notified  party  in such
    47  contest, determines that the notified party is a partner or one  of  the
    48  five  largest  shareholders, a substantially-owned affiliated entity, an
    49  officer of the contractor or subcontractor who knowingly participated in
    50  the violation of this article, or a successor, the  fiscal  officer  may
    51  instruct the financial officer to immediately withhold sufficient moneys
    52  to  safeguard the rights of the service employees and to cover the civil
    53  penalty that may be assessed as provided herein from any payment due the

    54  notified party under any [building] service work  contract  pending  the
    55  final determination.

        A. 7472                             5
 
     1    g. The fiscal officer may require any person or corporation performing
     2  such  public  work  to  file  with the fiscal officer within ten days of
     3  receipt of said request, payroll records, sworn to as to their  validity
     4  and  accuracy, requested by the fiscal officer, for said service work or
     5  for  any  public or private work performed by said person or corporation
     6  during the same period of time as said service work. In the  event  said
     7  person  or corporation fails to provide the requested information within
     8  the allotted ten days, the fiscal  officer  may,  within  fifteen  days,

     9  order the financial officer of the public agency to immediately withhold
    10  from  payment to said person or corporation up to twenty-five percent of
    11  the amount, not to exceed five hundred thousand dollars, to be  paid  to
    12  said  person  or corporation under the terms of the contract pursuant to
    13  which said service work is being performed. Said amount  withheld  shall
    14  be  immediately  released  upon receipt by the public agency of a notice
    15  from the fiscal officer indicating that the request for records had been
    16  satisfied.
    17    7. When, pursuant to the provisions of this section, two final  orders
    18  have been entered against a contractor, subcontractor, successor, or any
    19  substantially-owned  affiliated  entity of the contractor or subcontrac-

    20  tor, any of the partners if the contractor or subcontractor is  a  part-
    21  nership,  any  of  the  five  largest  shareholders of the contractor or
    22  subcontractor, any officer of the contractor or subcontractor who  know-
    23  ingly  participated  in the violation of this article within any consec-
    24  utive six-year period determining that such contractor or  subcontractor
    25  and/or  its  successor,  substantially-owned  affiliated  entity  of the
    26  contractor or subcontractor, any of the partners  or  any  of  the  five
    27  largest  shareholders of the contractor or subcontractor, any officer of
    28  the contractor  or  subcontractor  who  knowingly  participated  in  the
    29  violation  of  this  article  has willfully failed to pay the prevailing
    30  wages in accordance with the provisions of this  article,  whether  such
    31  failures  were  concurrent  or consecutive and whether or not such final

    32  determinations  concerning  separate  public  [building]  service   work
    33  contracts  are  rendered simultaneously, such contractor, subcontractor,
    34  successor, and if  the  contractor,  subcontractor,  successor,  or  any
    35  substantially-owned  affiliated  entity of the contractor or subcontrac-
    36  tor, any of the partners if the contractor or subcontractor is  a  part-
    37  nership,  or  any  of the five largest shareholders of the contractor or
    38  subcontractor, any officer of the contractor or subcontractor who  know-
    39  ingly participated in the violation of this article, or any successor is
    40  a  corporation,  any  officer  of such corporation who knowingly partic-
    41  ipated in such failure, shall be ineligible to submit a  bid  on  or  be
    42  awarded  any  public  [building] service work for a period of five years

    43  from the date of the second order, provided,  however,  that  where  any
    44  such  final  order  involves the falsification of payroll records or the
    45  kickback of wages, the contractor,  subcontractor,  successor,  substan-
    46  tially-owned  affiliated  entity of the contractor or subcontractor, any
    47  partner if the contractor or subcontractor is a partnership  or  any  of
    48  the  five  largest  shareholders of the contractor or subcontractor, any
    49  officer of the contractor or subcontractor who knowingly participated in
    50  the violation of this article shall be ineligible to submit a bid on  or
    51  be  awarded  any  public [building] service work contract or subcontract
    52  with the state, any municipal corporation or public body for a period of
    53  five years from the date of the  first  final  order.  Nothing  in  this
    54  subdivision  shall  be construed as affecting any provision of any other

    55  law or regulation relating to the awarding of public contracts.

        A. 7472                             6
 
     1    § 7. Subdivision 2 of section 237 of the  labor  law,  as  amended  by
     2  chapter 698 of the laws of 1988, is amended to read as follows:
     3    2. a. Before payment is made by or on behalf of a public agency of any
     4  sums due on account of a contract for service work, it shall be the duty
     5  of  the comptroller of the state or the financial officer of such public
     6  agency or other officer or person charged with the custody and disburse-
     7  ment of the state or corporate funds applicable to  the  contract  under
     8  and pursuant to which payment is made, to require the contractor to file
     9  a  statement  in writing in form satisfactory to such officer certifying
    10  to the amounts then due and  owing  from  such  contractor  filing  such

    11  statement  to or on behalf of any and all service employees for daily or
    12  weekly wages on account of labor  performed  upon  the  work  under  the
    13  contract, setting forth therein the names of the persons whose wages are
    14  unpaid  and  the  amount due to or on behalf of each respectively, which
    15  statement so to be filed shall be verified by the oath of the contractor
    16  that he or she has read such statement subscribed  by  him  or  her  and
    17  knows  the contents thereof, and that the same is true of his or her own
    18  knowledge.  The contractor shall file  these  payroll  records  verified
    19  under oath within ninety days after any labor is performed upon the work
    20  under  contract, or such other time as the fiscal officer may authorize.
    21  Any person who willfully fails to file such  payroll  records  with  the

    22  public agency shall be guilty of a class E felony.
    23    b.  Each  public  agency  shall  designate  in  writing  an individual
    24  employed by such department responsible for the receipt, collection  and
    25  review  for  facial  validity of a contractor's certified payroll state-
    26  ment, as set forth in this subdivision, before  payment  is  made.  Said
    27  designation  shall  be  filed  with  the  fiscal officer and posted in a
    28  conspicuous location at the work  site.  If  the  designated  individual
    29  cannot  perform the receipt, collection and review of certified payrolls
    30  duties as indicated above, for any reason, including but not limited  to
    31  reassignment, promotion or separation from employment, the public agency

    32  must immediately designate another individual employed by such agency to
    33  fulfill  such  responsibilities. In the event that a public agency fails
    34  to name an individual responsible for the receipt, collection and review
    35  for facial validity of contractors' certified payrolls, then  the  indi-
    36  vidual  so  responsible  shall be the individual who is the chief policy
    37  making officer of such public agency.
    38    § 8. Subdivision 2 of section 238 of the labor law, as added by  chap-
    39  ter 777 of the laws of 1971, is amended to read as follows:
    40    2.  When a contract for service work contains as part thereof a sched-
    41  ule of wages as provided for in this article,  any  [contractor]  person
    42  who,  after  entering into such contract[, and any subcontractor of such

    43  contractor who] willfully fails to pay to any service employee the wages
    44  stipulated in such wage schedule [is guilty of a  misdemeanor  and  upon
    45  conviction  shall  be  punished  for  a  first offense by a fine of five
    46  hundred dollars or by imprisonment for not more than thirty days  or  by
    47  both  fine and imprisonment; for a second offense by a fine of one thou-
    48  sand dollars, and in] shall be guilty of a  misdemeanor  for  the  first
    49  offense  and  upon  conviction therefor shall be fined two thousand five
    50  hundred dollars or twice the amount of underpayment, whichever is great-
    51  er or imprisoned for not more than one year, or both. If a person stands
    52  convicted of a violation of this section and  within  the  previous  six

    53  years  has  been  convicted  one  or  more  times of a violation of this
    54  section in separate transactions, then such person shall be guilty of  a
    55  class E felony upon conviction for such subsequent offense, and shall be
    56  fined five thousand dollars or triple the amount of underpayment, which-

        A. 7472                             7
 
     1  ever  is  greater  or  imprisoned  as authorized by section 70.00 of the
     2  penal law or punished by both such fine and imprisonment, for each  such
     3  offense.  In addition [thereto] to any other fine or penalty that may be
     4  imposed for such felony offense, the contract on which the violation has
     5  occurred shall be forfeited; and no such contractor shall be entitled to

     6  receive  any  sum,  nor  shall  any  officer,  agent  or employee of the
     7  contracting public agency pay any such sum or authorize its payment from
     8  the funds under his or her charge or control to such contractor for work
     9  done upon the contract on which the contractor has been convicted  of  a
    10  second offense. If the contractor or subcontractor is a corporation, any
    11  officer  of  such  corporation  who knowingly permits the corporation to
    12  fail to make such payment shall also be guilty of  [a  misdemeanor]  the
    13  offense defined in this subdivision and the criminal and civil penalties
    14  [herein]   of  this  subdivision  shall  attach  to  such  officer  upon
    15  conviction.
    16    § 9. Severability. If any clause, sentence, paragraph, section or part
    17  of this act be adjudged by any court of  competent  jurisdiction  to  be

    18  invalid  and  after exhaustion of all further judicial review, the judg-
    19  ment shall not affect, impair or invalidate the remainder  thereof,  but
    20  shall  be  confined in its operation to the clause, sentence, paragraph,
    21  section or part of this act directly  involved  in  the  controversy  in
    22  which the judgment shall have been rendered.
    23    §  10.  This act shall take effect on the ninetieth day after it shall
    24  have become a law and shall apply to all contracts or  other  agreements
    25  entered  into,  renewed  or  extended  on  or after such date; provided,
    26  however, that:
    27    (a) the amendments to subdivision 4 of section 230 of  the  labor  law
    28  made  by  section two of this act shall be subject to the expiration and
    29  reversion of such subdivision pursuant to section 5 of  chapter  678  of
    30  the  laws  of  2007,  as  amended, when upon such date the provisions of

    31  section three of this act shall take effect; and
    32    (b) the amendments to subdivision 5 of section 231 of  the  labor  law
    33  made  by section four of this act shall be subject to the expiration and
    34  reversion of such subdivision pursuant to section 5 of  chapter  678  of
    35  the  laws  of  2007,  as  amended, when upon such date the provisions of
    36  section five of this act shall take effect.
Go to top