New York
New York: Prevailing Wage is Mandatory
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APPLIES TO All Employers with Public Contracts in NY |
EFFECTIVE JUN 23, 2026 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
In Walton v. Comfort Systems USA (Syracuse), Inc., the New York Court of Appeals ruled that the prevailing wage is required in every covered public works contract. Here, the defendant employed technicians who installed, maintained, inspected, tested, repaired, and replaced fire alarms, fire sprinklers, and security system equipment under service contracts with New York public entities. The contracts varied in their prevailing wage language which some stating there was no prevailing wage obligation, some stating the amount incorrectly, and some silent on the matter. All of the contracts had a clause that state no legal claim can be brought against the defendant after a year from the date of the cause of action. The plaintiffs filed a class action lawsuit alleging failure to pay prevailing wages required by New York Labor Law Section 220.
In reaching its ruling, the court found that the Labor Law was clear in its requirement that every covered public works contract guarantees prevailing wage. What matters is what the statute requires to be in the contract and not whether the parties choose to include it. The requirement is inserted by operation of law and not by the parties and it is for the benefit of the laborers. The laborers are the third-party beneficiaries of the statute. As a separate issue, the court found that the contractual time limitation of the claim is unenforceable where prevailing wage claims are concerned. Again, this right to a claim for laborers flows from the statute and a contract cannot shorten that right.
Action Items
- Review payroll processes for compliance with prevailing wages on public works contracts.
- Consult with legal counsel regarding application of specific prevailing wage requirements.
- Have appropriate personnel trained on prevailing wage compliance requirements.
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New York City, NY: Amended Earned Safe and Sick Time Act Rules
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