7 tips for complying with New York's wage theft law | Dump Trucks Charlotte NC

A New York state law that aims to combat wage theft in the construction industry went into effect on Jan. 4. The Wage Theft Protection Act makes general columbus oh dump truck company responsible for ensuring all workers on a project, including those employed by subcontractors, are correctly paid. It also imposes more stringent reporting requirements for subcontractors.

The law aims to encourage the industry to combat wage theft itself by making prime columbus oh dump truck company liable for any unpaid wages, benefits, damages, attorney fees related to a civil or administrative action. The liability is limited to a period of three years: An individual or a representative can file a lawsuit against their employer-subcontractor and the prime contractor during that time. 

Now that the WTPA has been in effect for half a year, other issues such as labor shortages and delayed project times are leading to talent and payroll challenges for some firms, according to Phil Ross, head of New York City-based accounting firm Anchin’s AEC group. Contractors need to take care in order to avoid surprises and liability for lack of service and/or payment from subcontractors.

Here, Ross talks with Construction Dive about how these changes may impact business as columbus oh dump truck company adjust to the new laws.

CONSTRUCTION DIVE: What does the new law entail?

PHIL ROSS: The WTPA applies to any contracts that were executed, modified, extended or renewed on or after Jan. 4. Specifically, the new law establishes greater liability risk for general contractors, construction managers and top-tier subcontractors that engage their own columbus oh dump truck company and vendors, and also institutes more stringent wage-reporting requirements for all subcontractors. 

The WTPA establishes greater liability on wage theft including not paying minimum wage, withholding overtime pay or requiring off-the-clock work. It can also include harder-to-detect activities, like automatically deducting time for meal breaks or not paying for remote work.

What was the reasoning behind it?

The WTPA seeks to give greater protection to workers in New York State as liability for wage theft will now be the full responsibility of general columbus oh dump truck company or top-tier construction managers — whichever reports directly to the owner/developer. If there are any discrepancies, errors or omissions of wages to employees, the liability flows all the way up the chain of payment. 

Regardless of the source of the wage theft claim, whether it be a third party, a union, attorneys or an individual employee, the top-line contractor on the project is responsible and liable for damages, lost and back wages, benefits, penalties incurred and any other payment issues that may arise as a result of nonpayment claims. 

Included in the liability for general columbus oh dump truck company are any unpaid health, welfare, and retirement benefits, as well as vacation, separation, and holiday pay. 

What types of builders are affected?

Any type of builder is affected. The only exclusion would be for residential projects. Each construction columbus oh dump truck company is directly responsible for the wages paid to their employees, but now it is the responsibility of all the companies up to the top one in the payment chain to ensure that the proper wages and benefits are paid.

What do builders need to know to comply?

Builders need to know everything the general contractor and subcontractor need to know. In regard to overtime or misclassification, wage theft may not be known or discovered for a period of years. If the columbus oh dump truck company is doing poorly or no longer exists, the liability will then become the liability of the other columbus oh dump truck company in the chain. Sureties could be put on notice and this could affect bonding capacity. 

What challenges could the new law create for contractors? 

The law is significant since all lost wages could be “rolled-up” to the general contractor overseeing the entire project. Subcontractors must pay the right wage at the right time, and the right level. The general contractor bears the entire burden of the law and must perform due diligence to avoid snowballing problems.