A new law in New York will require contractors and subcontractors working on public projects or certain private projects with public funding to register with the New York State Department of Labor (NYSDOL) starting December 30, 2024. The initiative aims to improve compliance with labor standards and safety practices across the state's construction industry.

According to Kathleen Bloss, a partner at The Bonadio Group, the law applies to projects like renewable energy systems, broadband expansions, climate-related initiatives, and roadway excavations. Private projects are also covered if public funds exceed 30% of the total costs and the project costs over $5 million.

"Contractors and subcontractors must provide detailed information about their business, including worker compensation insurance, labor law compliance, and apprenticeship programs," Bloss said. Registration certificates will be issued electronically and remain valid for two years.

Failure to comply can result in significant consequences, including fines of up to $1,000 per infraction, work stoppages, and ineligibility to bid on public projects. "Unregistered contractors cannot bid on public work projects," Bloss emphasized.

This initiative is designed to enhance transparency and trust in the construction industry. "Being listed on the NYSDOL registry can improve credibility and streamline the bidding process," Bloss explained. For consumers, it ensures contractors adhere to prevailing wage laws and safety standards, ultimately benefiting workers and the public.

Project owners and contractors are also responsible for verifying the registration status of all parties involved in a project. For clarity on project coverage under these regulations, the Public Subsidy Board can assist in determining status and prevailing wage requirements.

This new registration process underscores New York’s commitment to fostering a fairer and safer construction environment.