Contractors and subcontractors that perform work on projects subject to Article 8 of the New York Labor Law must register with the New York State Department of Labor (NYSDOL) on or before December 30, 2024. Article 8 of the Labor Law contains New York State’s prevailing wage requirements for public work and certain private construction projects receiving public funds. The new law, found in Section 220-I of the New York Labor Law, was enacted with the stated goal of increasing oversight and compliance on qualifying construction projects, but will likely have the effect of limiting the pool of contractors authorized to bid on public work projects to registered entities. 

Who Must Register

The registration requirement applies to contractors and subcontractors performing work on public works projects and private projects that are covered by Article 8 of the Labor Law, including projects that have received significant public subsidies, certain renewable energy systems, the state’s broadband infrastructure, certain climate-related construction projects, state energy transition initiatives, and work requiring permits for roadway excavations. See e.g., Labor Law Sections 224-a, 224-d, 224-e-f. Contractors not performing work covered by Article 8 of the Labor Law are not required to register.

A contractor is defined as any entity entering into a contract for construction, demolition, repair, or similar work; a subcontractor is defined as any entity hired by a contractor to perform such work. It is important for contractors to ensure that any subcontractors with whom they contract are properly registered before the subcontractor begins work on the covered project. Contractors whose registration lapses while performing work on a public work contract are permitted to complete work on the project, but contractors determined to be unfit for registration are required to obtain a third-party monitor to oversee the completion of the project. 

Registration

To register, contractors and subcontractors must submit applications exclusively through the NYSDOL online Contractor Registry Portal. The NYSDOL will not accept paper submissions and payments. In addition, the NYSDOL is encouraging all qualified contractors and subcontractors to register before December 30, 2024, to avoid disruptions during bidding periods or project schedules.

As part of the application process, applicants must provide a host of business information, including:

• The business’s name and principal address;
• Contact phone numbers;
• Status as a person, partnership, association, joint stock company, trust, corporation, or other form of business entity;
• The name, address, and percentage interest of each person with an ownership interest, or the names and addresses of the corporation’s officers (if a publicly traded corporation);
• Tax Identification Number (FEIN);
• Unemployment Insurance Registration Numbers;
• Workers’ Compensation Board Employer Numbers;
• Identifying any open and outstanding wage assessments;
• A history of any federal or state debarments over the last eight years;
• A statement of whether the business was subject to any final determinations of violations of any labor laws or employment tax laws including but not limited to:
  
  • Workers’ compensation coverage requirements;
  • Payment of workers’ compensation premiums;
  • Deduction and payment of income taxes;
  • Payment of unemployment insurance contributions; and
  • Payment of prevailing wages.
• Final determinations of violations of any workplace safety laws or standards, including federal Occupational Safety and Health Act (OSHA) standards;
• Participation in a New York State Apprenticeship Program, if applicable;
• Status as a New York State certified Minority or Women-owned Business Enterprise (MWBE), if applicable; and
• Proof of Workers’ Compensation Insurance Coverage.

A complete list of information needed to complete the application can be found at What You Need to Register for the Contractor and Subcontractor Registry | Department of Labor.

In addition, there is a nonrefundable registration fee of $200. A reduced fee of $100 is applicable to MWBEs. 

Upon approval as a registered contractor or subcontractor, registrants receive a Certificate of Registration with a unique number that is valid for two years with renewal required at least 90 days before expiration.

State agencies, local entities, private developers receiving public subsidies, and other contracting entities on covered projects must confirm that all project contractors and subcontractors have registered before work begins on the project. NYSDOL has advised that registration data be made publicly available on New York’s Open Data website after the law goes into effect on December 30, 2024.

Finally, it is anticipated covered government agencies or entities will begin requiring proof of registration as part of project bid solicitations. Failure to meet this requirement may result in disqualification from bidding or project participation.

Enforcement

Contractors and subcontractors who bid on or begin work without proper registration may be subject to a civil penalty of up to $1,000 per project, and the NYSDOL has authority to issue stop work orders on projects outside of New York City. The New York City Comptroller has authority over City projects. Contractors may also be held liable when they knowingly engage with unregistered subcontractors. 

Registrations may be denied, suspended, or revoked if a contractor or subcontractor is deemed “unfit,” such as having unresolved prevailing wage violations or is debarred pursuant to Section 220-b(3) of the Labor Law or Section 141-b of the Workers’ Compensation Law. Those found unfit while working on a project may continue work under the oversight of a state-approved monitor, which must be funded at their own expense. Contractors deemed unfit can file an appeal within 30 days of notification.

Practical Considerations

Businesses that perform work within the coverage of Article 8 of the Labor Law should register with NYSDOL as soon as possible. Businesses in the construction industry, developers, and other entities subject to New York’s prevailing wage requirements are encouraged to consult with Labor and Employment counsel regarding the applicability of this registration requirement, and for assistance in the registration process. 

Littler will continue to monitor and track developments on this pending item.