Prevailing Wage Fraud

What is prevailing wage?

New York’s prevailing wage law protects construction workers who work on state government-contracted projects and certain state government-funded projects. A prevailing wage lawyer can help you determine your rights under the law.

The prevailing wage rate is the rate of pay that contractors on public worksites or government-funded projects have to pay their workers. The rate is much higher than the minimum state minimum wage rate. The pay rate is often similar to the rates paid to union members including the value of their benefits package. The State and NYC government regularly issue schedules including the appropriate pay rates for each position in each locality.  

The law ensures high-quality workmanship on government-funded construction projects. It also prevents contractors from lowballing their bids on those projects by paying substandard wages to their laborers. Workers often affected by this type of fraud include non-union electricians, plumbers, laborers, and masons.

Who is Protected by New York’s Prevailing Wage Law?

Workers on construction jobs resulting from NYS contracts or funding are entitled to compensation at least the prevailing wage rates. These rates are determined based on the job performed and the area where the work is performed.

The pay rate is often similar to the rates paid to union members including the value of their benefits package. The government regularly issues schedules including the appropriate pay rates for each position.   

For example, in a position where the average union member would earn $45.00 an hour in pay and an additional $35.00 an hour in benefits, a worker could be entitled to at least $80.00 per hour in pay and benefits. When a worker on the same project is paid only $15.00 per hour without benefits, his monetary damages can be substantial.

New York allows laborers on state government contracts to bring prevailing wage claims directly against their employers. Both the prime contractor and subcontractors who employ the worker are responsible for making sure that laborers are paid properly.

Workers do not have to be in a union to benefit from this law. In addition, laborers are entitled to compensation even if they are undocumented.

2022’s Amendments to the Law

In 2022, amendments to New York’s prevailing wage law went into effect, expanding the definition of work covered by the law. Many laborers working on jobs that are partially paid for by New York government funds are now covered. At lease thirty percent of the project must be paid for with public funds.

The new law applies even if New York is not a party to the contract. As a result, it is expected that the number of workers on construction jobs and other projects that receive some public funding will be eligible for protection under the law.     

While federal law also protects workers on federal government contracts, an individual worker cannot bring a private lawsuit relating to those contracts. Workers on federally funded government contracts are covered by the Davis-Bacon Act. Workers on federal contract jobs can make prevailing wage through the U.S. Department of Labor.

If you believe you have a New York state prevailing wage claim, contact our lawyers now.