Senate Bill S4309

                                 BILL NUMBER:  S4309

 TITLE OF BILL :
An act to amend the labor law, in relation to directing the
commissioner of labor to calculate proper payment of supplements by an
annualization methodology


 PURPOSE :
Directs the Commissioner of Labor to direct that the proper payment of
supplements shall be calculated by employing the annualization
methodology utilized by the U.S.  Department of Labor in such
calculations under the Davis Bacon Act.

 SUMMARY OF PROVISIONS :
The bill adds a new subdivision 3-f to Section 220 of the Labor Law,
dealing with contracts involving public work, to prevent employers
from using public work as a disproportionate or exclusive source of
funding for benefits that are in fact continuous in nature and are
part of the regular compensation for all employee work whether public
or private, the Commissioner shall direct that the proper payment of
supplements be calculated using an annualization methodology. In order
to protect workers and ensure consistency of application, the
Commissioner shall employ the annualization methodology utilized by
the U.S. Department of Labor in calculations under the Davis Bacon Act
of 1931  40 USE 276 ET SEQ .ct.
              

 JUSTIFICATION :
The annualization method currently utilized by the Commissioner of
Labor for calculating supplemental benefits which contractors are
required to provide employees who work on private and public work
projects forces contractors to either switch from providing employees
with supplemental benefits (health insurance, pension, etc.) to cash
payments of supplemental benefits or to pay workers at a higher
overall supplement rate which includes time spent on private projects.
In essence, the methodology currently utilized by the Commissioner
extends the reach of the public work law to partially cover private
work as well. The rate for supplements on private work projects should
be determined through forces of the free market economy, rather than
the rates required for public work projects. The methodology
prescribed by the Commissioner of Labor frustrates the purpose of the
prevailing wage law by extending it beyond public work. The federal
methodology for annualization of benefits under the Davis Bacon Act is
fair and does not penalize employers for doing both public and private
work. As such, this legislation would make it clear that the method
utilized by the federal government under the Davis Bacon Act is the
method that should also be applied in this State.

 LEGISLATIVE HISTORY :
S.5912/A.5704 - 2007-08

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect on the one hundred twentieth day after it
shall have become a law.