Provides that subcontractors on public works projects provide a surety bond for the underpayment of the prevailing wage; contractors will only become liable for paying the underpaid prevailing wage when the surety bond is exhausted.
STATE OF NEW YORK
________________________________________________________________________
5106
2009-2010 Regular Sessions
IN SENATE
April 27, 2009
___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when
printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to the payment of the
prevailing wage by subcontractors on public works projects
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 220 of the labor law is amended by adding a new
2 subdivision 10 to read as follows:
3 10. Surety bond payable by subcontractors. All subcontractors on a
4 public work project shall be required to submit a surety bond for the
5 underpayment of the prevailing wage and supplements. Where the fiscal
6 officer for the public work project is the commissioner, the surety bond
7 shall be paid to the commissioner for deposit in the state treasury.
8 Where the fiscal officer is a city comptroller or other analogous offi-
9 cer, the surety bond shall be paid to said officer for deposit in the
10 city treasury. Such surety bond shall be in the sum of five per centum
11 of the total payroll of the subcontractor on a public work project and
12 shall be retained by the fiscal officer for a period not to exceed two
13 years following the completion of the public work project. Interest
14 shall accrue on such surety bond at a rate of five per centum per annum
15 beginning on the date of deposit with the fiscal officer and shall be
16 dispersed only as specified in this subdivision. Proceeds from the sure-
17 ty bond may only be dispersed for the purpose of refunding the surety
18 bond to a subcontractor two years after the expiration of the public
19 work project or for the payment of wages or supplements determined to be
20 owing to workers pursuant to this section. Nothing in this subdivision
21 shall be construed to preclude subcontractors or contractors from any
22 liability or responsibility pursuant to this article.
23 § 2. Section 223 of the labor law, as amended by chapter 929 of the
24 laws of 1935, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09660-01-9
S. 5106 2
1 § 223. Enforcement of article. If the fiscal officer as defined herein
2 finds that any person contracting with the state, a municipal corpo-
3 ration, or any commission appointed pursuant to law, for the performance
4 of any public work fails to comply with or evades the provisions of this
5 article, he shall present evidence of such non-compliance or evasion to
6 the officer, department, board or commission having charge of such work
7 for enforcement. Wherein such evidence indicates a non-compliance or
8 evasion on the part of a sub-contractor, the contractor shall be respon-
9 sible for such non-compliance or evasion; provided, however, that any
10 underpayment of prevailing wages or supplements on the part of a subcon-
11 tractor shall be paid pursuant to subdivision ten of section two hundred
12 twenty of this article. Only after the payment of such wages or supple-
13 ments is exhausted pursuant to subdivision ten of section two hundred
14 twenty of this article may a contractor become liable for the payment of
15 such wages or supplements on behalf of a subcontractor. It shall be the
16 duty of any officer, department, board or commission in charge of the
17 construction of such public work contracts to enforce the provisions of
18 this article.
19 § 3. This act shall take effect immediately.
