Senate Bill S1256

                                BILL NUMBER:S1256

TITLE OF BILL:  An act to amend the labor law, in relation to making
contractors ineligible to bid for a public work contract if prevailing
rate wages and supplements due from a prior public work contract
remain unpaid

PURPOSE:

To prohibit contractors and subcontractors from bidding on public work
contracts until all prevailing wages and supplements due from such
prior contracts are paid.

SUMMARY OF PROVISIONS:

The bill would amend section 220-b(3)(b) of the Labor Law to prohibit
any contractor, subcontractor, or their substantially-owned
affiliates, partners, controlling shareholders or successors from
bidding on or being awarded a public work contract until the
prevailing wages and supplements determined to be due from prior
public work contracts are paid.

EXISTING LAW:

Section 220-b(3) of the Labor Law prohibits any contractor,
subcontractor, or their substantially-owned affiliates, partners,
              

controlling shareholders or successors from bidding on or being
awarded a public work contract within five years following two final
determinations that they willfully failed to pay prevailing wages and
supplements, or after a final determination involving the
falsification of records or kickback of wages.

JUSTIFICATION:

The state spends a significant amount of money on public work
projects. The payment of prevailing wages to employees for public work
is required under the state constitution and labor law.  Contractors
awarded public work contracts have a legal duty to comply with the law
and should not be allowed to bid on new projects until they fulfill
that duty. Public work employees depend upon their earnings to support
themselves and their families and are entitled to be paid in a timely
manner.

This bill addresses a common problem where a contractor or
subcontractor that is violating the prevailing wage law has several
other projects in the works. The enforcement officer may have a
complaint for non-payment concerning one of these projects, but not
for the others. If the hearing on the complaint finds a willful
failure to pay prevailing wages, the contractor may still continue to
bid and be awarded new public work contracts even if wages remain due
from prior projects. This problem occurs even where contractors enter
into consent orders or settlements to pay wages. This legislation
would ensure that where such determinations have been reached, the
contractor may not bid or receive new contracts until the payment of
wages is satisfied.

PRIOR LEGISLATIVE HISTORY:


2013-2014 - S.77
2011-12: S.730
2009-2010: S.3398 Referred to Labor

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.