2023 New York Laws › LAB - Labor › Article 6 - Payment of Wages › 198-E - Construction Industry Wage Theft.

§  198-e. Construction industry wage theft.  1. A contractor making or
  taking a construction contract shall be liable for  any  debt  resulting
  from  an  action under section one hundred ninety-eight of this article,
  owed to an employee or third party on the employee's behalf, incurred by
  a subcontractor at any tier acting under, by, or for the  contractor  or
  its   subcontractors  for  the  employee's  performance  of  labor.  The
  provisions of this section shall not be deemed to limit the liability of
  a subcontractor under section one hundred ninety-eight of this article.
2. No agreement or release by an employee or  subcontractor  to  waive
  liability  of  a  contractor under this section shall be valid except as
  otherwise provided herein. The provisions of this section shall  not  be
  deemed  to  impair  the  rights  of  a  contractor to maintain an action
  against a subcontractor for amounts for owed wages that are  paid  by  a
  contractor pursuant to this section.
3.  Notwithstanding any other provision of law, the remedies available
  for a claim pursuant to subdivision one of this section  shall  only  be
  civil and administrative actions.
4. In the case of a private civil action by an employee, such employee
  may  designate  any  person, organization or collective bargaining agent
  authorized to file a complaint with the commissioner pursuant to section
  one hundred ninety-six-a of this article, to make a  claim  pursuant  to
  this section on his or her behalf.
5.  In  the  case of an action against a subcontractor, the contractor
  shall be considered jointly and severally liable for any  unpaid  wages,
  benefits, wage supplements, and any other remedies available pursuant to
  the requirements of section one hundred ninety-eight of this article.
6.  Nothing herein shall preclude the attorney general from bringing a
  civil action  to  collect  unpaid  wages  and  penalties  on  behalf  of
  employees pursuant to this section.
7. A contractor or any other person shall not evade, or commit any act
  that  negates, the requirements of this section, provided, however, that
  this  section  shall  not  be  deemed  to  prohibit  a   contractor   or
  subcontractor  from  establishing  by  contract  or  enforcing any other
  lawful remedies against a subcontractor it hires for  liability  created
  by violation of this section, provided that such contract or arrangement
  does  not  diminish  the right of employees to bring an action under the
  provisions of this section.
8. As used in this section:
a. "Construction contract" means a written or oral agreement  for  the
  construction,   reconstruction,   alteration,   maintenance,  moving  or
  demolition of any building, structure or improvement, or relating to the
  excavation of or other development or improvement to land. For  purposes
  of this section, a construction contract shall not include: any contract
  which  is  subject  to article eight of this chapter; a home improvement
  contract for the performance  of  a  home  improvement  between  a  home
  improvement  contractor and the owner of an owner-occupied dwelling; and
  a home construction contract  for  one-  or  two-family  dwelling  units
  except  where  such contract or contracts results in the construction of
  more than ten one- or two-family owner-occupied dwellings at one project
  site annually.
b. "Contractor" means  any  person,  firm,  partnership,  corporation,
  association,   company,   organization  or  other  entity,  including  a
  construction manager, general or prime contractor, joint venture, or any
  combination thereof, which enters into a construction contract  with  an
  owner.
c.  "Owner" means any person, firm, partnership, corporation, company,
  association or other organization or other entity, or a  combination  of
  any thereof, (with an ownership interest, whether the interest or estate

  is  in fee, as vendee under a contract to purchase, as lessee or another
  interest or estate less than fee) that causes a building,  structure  or
  improvement,  new  or  existing,  to  be constructed, altered, repaired,
  maintained,  moved  or demolished or that causes land to be excavated or
  otherwise developed or improved.
d. "Subcontractor" means any person, firm,  partnership,  corporation,
  company,  association,  organization or other entity, or any combination
  thereof, which is a party to a contract with a contractor, and/or  party
  to  a  contract  with  the  contractor's  subcontractors  at any tier to
  perform any portion  of  work  within  the  scope  of  the  contractor's
  construction  contract with the owner, including where the subcontractor
  has no direct privity of contract with the contractor.
9. A contractor's liability pursuant to the provisions of this section
  shall be applicable only for claims  occurring  no  earlier  than  three
  years  prior  to  the  initiation  of such claim in a court of competent
  jurisdiction or the commencement of a civil action brought forth by  the
  attorney  general or department. Before bringing a civil action pursuant
  to this section, an employee, or third party on such employee's  behalf,
  must  give  the  contractor  notice of the alleged violation. The notice
  need only describe the general nature of the claim and shall  not  limit
  the  liability of the contractor or preclude subsequent amendments of an
  action to encompass additional employees employed by the  subcontractor.
  An  employee,  or third party on such employee's behalf, may not bring a
  civil action until ten business days after giving the contractor  notice
  of  the  alleged  violation  and  may  not  bring  a civil action if the
  contractor corrects the alleged violation. An employee, or  third  party
  on  such  employee's  behalf,  is  not  required  to  give  notice  to a
  contractor pursuant to this subdivision before bringing a  civil  action
  pursuant  to  this  section  if  any  employee,  or  third  party on any
  employee's behalf, previously has given notice to such contractor of the
  same alleged  violation  or  a  prior  alleged  violation  by  the  same
  subcontractor.  The  provisions  of  this section shall not be deemed to
  diminish, impair, or otherwise  infringe  on  any  other  rights  of  an
  employee  provided  pursuant  to this chapter, including the right of an
  employee to bring an action against any employer under the provisions of
  section one hundred ninety-eight of this article.
10. Nothing in this section shall be deemed to  diminish  the  rights,
  privileges,  or remedies of any employee under any collective bargaining
  agreement. On behalf of an employee subject to a  collective  bargaining
  agreement,  the provisions of this section may be waived by a collective
  bargaining agreement with a bona fide building  and  construction  trade
  labor  organization which has established itself, and/or its affiliates,
  as the collective bargaining representative for persons performing  work
  on  a  project,  provided  that  for  such  waiver to be valid, it shall
  explicitly reference this section. Provided, however, that  such  waiver
  shall  not  diminish  or impair the rights of an employee provided under
  any other section of this chapter.