Assembly approves prevailing‑wage expansion to cover off‑site custom fabrication with carve‑outs

ALBANY, N.Y. — The Assembly on Jan. 28 approved a chapter amendment to the Labor Law that extends prevailing‑wage rules to include off‑site custom fabrication tied to traditional public‑works projects, but the negotiators inserted several carve‑outs and clarifications for implementation.

Sponsor Mister Bronson said negotiators adjusted the bill’s definition of “custom fabrication” so it excludes components, portions, modules or materials that are stocked or readily available. The sponsor said the change aims to prevent developers from avoiding prevailing‑wage obligations by moving custom fabrication off site and that enforcement would rest largely on contractual obligations included in public‑works contracts.

The chapter amendment explicitly carves out affordable housing from this bill’s coverage and narrows some transportation work after executive‑branch concerns, Bronson said, while making clear that electrical, plumbing, HVAC and mechanical insulation work in rest areas, transit stations and depots remains covered. He said reporting requirements will follow existing payroll‑record rules, with the Department of Labor (outside New York City) and the New York City controller (in the city) responsible for oversight.

Opponents warned of heavy administrative burdens and potential job losses. Assemblymember DiPietro said businesses in his district had canceled expansion plans because of the bill and said one project he cited would lose “140 jobs.” Proponents, including cosponsors who described longtime work on fabrication issues, argued prevailing‑wage protections help keep money and skilled labor in state communities.

The clerk read the bill’s final section on the floor (the record includes the phrase read as "This act shall take effect on the January and eightieth day"). Members offered explanations of votes (Asampolinski said the carve‑outs changed his prior position) and the Assembly recorded Ayes 126, Noes 7. The bill passed.

Why it matters: The change expands the reach of prevailing‑wage protections to include certain off‑site work connected to public‑works projects; contractors, local governments and small fabricators will need to interpret which work is “custom fabrication” and how to meet payroll‑reporting obligations.

What’s next: Agencies (the Department of Labor and local fiscal officers) will issue guidance and contractors will incorporate contractual language to enforce out‑of‑state compliance.