Relates to owner liability for construction industry wage theft
A10740 amends New York Labor Law section 198-e to expand liability for construction industry wage theft from contractors to include owners who enter into construction contracts. Under the bill, owners and contractors would be jointly and severally liable for unpaid wages and related remedies owed by subcontractors at any tier for labor performed on a project. The bill also preserves the ability of employees, third parties acting on their behalf, the attorney general, and the labor department to pursue civil and administrative enforcement, while prohibiting waivers that would undermine the new liability rules.
The bill defines key terms such as contractor, owner, subcontractor, and construction contract, and it excludes certain home improvement and small residential projects from coverage, with an exception for larger multi-unit projects. It also establishes notice requirements before a private civil action may be filed, limits claims to a three-year lookback period, and allows collective bargaining agreements to waive the section only if the waiver expressly references the statute and is made with a bona fide building and construction trade labor organization.
If enacted, the bill would broaden the scope of New York’s construction wage theft law by making project owners legally responsible alongside contractors for wage violations committed by subcontractors. This would affect owners, developers, contractors, subcontractors, employees, labor organizations, and enforcement agencies by increasing the pool of liable parties and potentially improving wage recovery for workers. It would also preserve existing rights under Labor Law article 6 and collective bargaining agreements, while creating a new statutory framework for notice, enforcement, and indemnity-style recovery between contractors, owners, and subcontractors.
The available context shows the bill was introduced and referred to the Assembly Committee on Labor, with no recorded votes or committee transcript excerpts provided. Based on the text alone, the bill appears strongly worker-protective and enforcement-oriented, reflecting a policy preference for expanding remedies against wage theft in the construction industry. Because there is no recorded debate in the provided materials, there is no direct evidence of support or opposition from specific legislators or stakeholders in the context supplied.
The main point of contention is likely the expansion of liability to owners, since the bill would make them jointly and severally responsible for subcontractor wage theft even without direct privity with the workers. That change could be opposed by owners, developers, and some contractors who may view it as increasing project risk, litigation exposure, and compliance costs. On the other hand, labor advocates and worker-rights supporters would likely favor the bill because it strengthens wage recovery and reduces the ability of higher-tier project participants to avoid responsibility through subcontracting chains. The bill also contains potential flashpoints around notice requirements, the ability to cure alleged violations, and the limited waiver provision in collective bargaining agreements.