-- Supports Bills Expanding Bans against Law-Breakers --

New York City Comptroller William C. Thompson, Jr. today announced his support for A11676 that would amend the State labor laws, and expand the ability of his office to debar contractors and subcontractors for violating the labor laws.

“Workers on public projects deserve and are lawfully entitled to the same wages as those who labor in the private sector,” Thompson said. “Our prevailing wage laws are important to taxpayers who want high-quality construction work done safely and at a reasonable price. These laws are critical to workers who want to make a decent living and work in safe conditions, and important to honest contractors who want to compete fairly for jobs.”

The New York City Comptroller enforces the New York State Labor Law’s requirement that private sector companies pay employees prevailing wages and benefits for construction or building services under City public work contracts. The State Department of Labor enforces the labor laws for State public work contracts.

Under current laws, if the State Commissioner of Labor or the New York City Comptroller has made two determinations within a six year period that a person or a company has willfully failed to pay the prevailing wage or to provide the required benefits, that company can be debarred for a period of five years. Cases involving falsifying records or kickbacks require only one determination. In addition, a person or company can be debarred for a period of five years if such person or company has been convicted of certain crimes. 

If enacted, A11676 would close current loopholes in the labor laws that allow contractors and subcontractors who fail to comply with prevailing wage settlements and final orders to continue to bid on, and be awarded, public contracts. Similarly, the bill would allow the State Commissioner of Labor or the New York City Comptroller to seek to debar contractors who willfully obstruct a labor law investigation.

“It is unjust that a contractor who walks away from an agreement that he signed to make restitution to employees whom he cheated out of their legally mandated wages can seek more city or state contracts,” Thompson said. “The implementation of A11676 would correct this and provide more opportunities to hold contractors and subcontractors accountable.”

A11676 would amend Articles 8 and 9 of the labor laws to authorize either the State Commissioner of Labor or the New York City Comptroller to debar contractors and subcontractors from bidding on any public work contracts when any person or corporation has:

• refused, after two written requests, to allow the fiscal officer or his or her agents, examiners or inspectors to examine books and records;

• failed, after two written requests, to respond to a formal request to produce records;

• failed to respond to a subpoena to produce records; 

• failed to implement or comply with a prevailing wage settlement and/or stipulation within thirty days of the date of the settlement or stipulation; or failed to make any payment thereunder within 30 days of when due; or,

• failed to comply with an order of the fiscal officer, within thirty days of the final order or final judicial determination, whichever is later.

Since 2002, Comptroller Thompson has debarred 28 contractors from doing business with the City and State and assessed $5,832,416 in back wages and benefits and $833,282 in penalties.

Comptroller Thompson also has announced his support for two other bills - S6077A and S6078 - which also would strengthen the labor laws.

S6077A would allow contractors to be debarred if it is proven that they have a willful practice of hiring subcontractors that intentionally fail to pay prevailing wages and benefits required by law. The bill also would increase the maximum amount that can be withheld from a contractor who fails to produce required records during a prevailing wage compliance investigation from $100,000 to $1 million.

S6078 would require that all subcontracts for public works projects be in writing. This provision is already required of all New York City construction contracts.

“Strengthening labor laws would go a long way to not only provide better conditions for workers, but also to ensure that only responsible contractors can work for the City of New York,” Thompson said.

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