(650) 332-8623New York State (NYS) Prevailing Wage: a Guide to Rules, Requirements, Rates, and More for 2025
Learn New York’s prevailing wage rules, rates, and requirements for 2025. Ensure compliance and fair wages on public projects.
The laws in prevailing wage in New York play a big role in making sure workers on public projects are paid fairly.
These prevailing wage laws mean if you’re working on a project funded by the government, you should get paid a wage matching what other workers in your area make for similar jobs. For both workers and contractors, understanding these laws helps avoid fines and stay on the right side of state requirements.
In this guide, we’ll cover
- the basics of New York’s prevailing wage rules,
- who enforces them, and
- what benefits they include.
You’ll also learn about the specific wage rates for different jobs and the penalties if rules aren’t followed.
By the end, you’ll understand:
- What New York’s prevailing wage laws mean for public projects
- How the state decides fair pay rates for different jobs
- What benefits and protections these laws offer
Understanding Prevailing Wage Laws in New York
Prevailing wage is the standard pay rate for workers doing specific jobs on public projects in New York. The state government sets this wage to reflect what other workers in the same area earn for similar work.
The New York State Department of Labor (NYSDOL) decides on prevailing wages, based on the type of work and where the project is located.
These wages are often tied to local union pay rates for similar jobs. They’re typically higher than minimum wage, ensuring that workers receive fair compensation for their skills.
The Legal Framework for Prevailing Wages in New York State
The law for prevailing wage in New York was established in 1897. It’s based on Article 8 of the New York State Labor Law and builds on the federal Davis-Bacon Act to ensure fair wages for workers on public projects.
The law applies to projects funded by the state or local governments, including the construction, repair, or maintenance of public buildings and infrastructure. Contractors and subcontractors on these projects must pay the prevailing wage for each specific job role.
These rules cover a wide range of workers, such as laborers, mechanics, and apprentices, ensuring fair pay for everyone working on public-funded projects in New York.
Understanding New York Prevailing Wage Laws
New York State Labor Law Article 8
New York's Primary Prevailing Wage Law
New York’s main prevailing wage law is in Article 8 of the New York State Labor Law. This law makes sure that workers on public projects get paid fair wages that match the local pay for similar jobs.
Contractors and subcontractors working on projects funded by the state or local government must follow these wage rules. This includes jobs like construction, repair, and maintenance on public buildings, roads, and infrastructure.
1897
When Did New York's Prevailing Wage Law Take Effect?
New York’s prevailing wage law was first enacted in 1897. This early law shows the state’s long-time commitment to making sure workers on public projects are paid fairly. Over time, the law has been updated to keep up with changing pay standards and job roles.
2020 Senate Bill S7508-B / Assembly Bill A9508-B
Additional New York Prevailing Wage Statutes
In 2020, New York passed Senate Bill S7508-B / Assembly Bill A9508-B, expanding prevailing wage requirements to certain privately funded projects. This law mandates that prevailing wages apply to private projects when total construction costs exceed $5 million and at least 30% of funding comes from public sources.
This expansion ensures that large private projects with significant public investment also follow wage standards that benefit local workers.
NYSDOL
New York State Department of Labor (NYSDOL) is Responsible for Enforcing Prevailing Wage in New York
The New York State Department of Labor (NYSDOL) is in charge of making sure that laws on prevailing wage in New York are followed. This agency sets the wage rates, checks projects for compliance, and updates wage schedules for different jobs and counties.
NYSDOL’s role is to keep wages fair for workers and help employers understand their responsibilities under the law.
None
What’s the Minimum Value of Projects Covered by Prevailing Wage Laws in New York?
Laws on prevailing wage in New York apply to all public works projects funded by the state or local government, with no minimum value threshold. This means that even smaller public projects, regardless of cost, must adhere to prevailing wage requirements to ensure fair pay for workers.
Additionally, as of 2022, certain large private projects are also subject to prevailing wage laws if their total costs exceed $5 million and they receive at least 30% of their funding from public sources.
New York State Prevailing Wages for Common Roles
$67.38Boilermaker Base Wages (Statewide)
The base wage for Boilermakers across New York is set at $67.38 per hour, increasing to $68.88 in 2025. This rate applies uniformly in all counties, reflecting the statewide standard for this role.
$26.85+ Boilermaker Fringe Benefits (Statewide)
Fringe benefits for Boilermakers include 33.5% of the hourly wage plus an additional $26.85. This standard rate provides comprehensive benefits across the state.
All-In Rate: $94.23
$47.65Ironworker (Ornamental) Base Wages (New York County)
In New York County, Ornamental Ironworkers receive a base wage of $47.65 per hour, setting a steady standard for this role in the state’s most populous county.
$66.29Ironworker (Ornamental) Fringe Benefits (New York County)
Fringe benefits for Ornamental Ironworkers are provided at $66.29 per hour, offering a solid benefits structure in New York County.
All-In Rate: $113.94
$57.20Ironworker (Structural) Base Rate (New York County)
Structural Ironworkers in New York County are paid a base wage of $57.20 per hour, ensuring competitive compensation for this skilled role.
$89.85Ironworker (Structural) Fringe Benefits
Structural Ironworkers receive fringe benefits totaling $89.85 per hour.
All-In Rate: $147.05
$75.46Marine Diver Base Rate
Marine Divers receive one of the highest rates across roles, with a base rate of $75.46 per hour.
$45.65Marine Diver Fringe Benefits
Fringe benefits for Marine Divers are $45.65 per hour.
All-In Rate: $121.11
$55.05Carpet Layer Base Rate (Statewide)
The highest rate for Carpet Layers statewide is $55.05 per hour, covering the installation of indoor and outdoor turf.
$39.45Carpet Layer Fringe Benefits (Statewide)
Fringe benefits for Carpet Layers add up to $39.45 per hour.
All-In Rate: $94.50
New York Prevailing Wage Resources
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Typical Fringe Benefits and Calculations in NYS
Health insurance is a core part of fringe benefits in New York’s prevailing wage system. This benefit helps cover medical costs, such as doctor visits and hospital stays, making healthcare more affordable for workers on public projects.
Employers contribute a significant portion of health costs, reducing workers’ out-of-pocket expenses.
Dental insurance is sometimes part of the prevailing wage benefits, but specific costs for dental services are generally included within the overall fringe benefit rate. It typically covers preventive care like cleanings and check-ups, helping workers maintain oral health.
Vision insurance is occasionally included in the health package and may provide coverage for eye exams, glasses, and lenses, which is valuable for roles needing clear vision on job sites. Specific allocations for vision care are not typically itemized separately in fringe benefit schedules.
Paid Time Off, including sick leave and holiday pay, is standard under New York’s prevailing wage laws. PTO accrual is based on hours worked, allowing employees to take necessary breaks without loss of income.
Vacation days are included, typically accrued annually based on hours worked. This benefit supports a balanced work-life dynamic, allowing workers on public projects to take extended time off and return refreshed. Vacation accrual rates vary depending on the project and worker tenure.
Tuition reimbursement is not generally a formal component of New York’s prevailing wage benefits. Some contractors may offer this benefit independently for skill development, though it’s less common in public works projects.
Bonuses are rare as part of standard prevailing wage packages. While performance-based bonuses may occur in specific project contracts, they are not part of regular wage or benefit calculations for most roles.
Pension contributions form a significant part of New York’s prevailing wage benefits, where employers contribute to a retirement plan on behalf of workers.
These contributions ensure income security for workers post-retirement and are calculated as a percentage of the worker’s hourly wage.
Some prevailing wage roles may offer 401(k) contributions, though traditional pensions are more common. If available, the employer’s 401(k) match helps workers build additional retirement savings alongside pensions.
Extra pay for hours worked during nighttime shifts. This compensates workers for working non-standard hours, and the differential amount varies based on the trade and employer agreements.
Increased wages for work performed on recognized holidays. This benefit compensates workers at a higher rate (often 1.5x or 2x their usual hourly wage) if they are required to work on holidays.
Employer Responsibilities in New York State
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Employers must use the right prevailing wage rate for each job and location.
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Employers need to check the General Construction Rate Schedule to apply the correct rates.
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Employers must keep accurate payroll records for at least six years, including details like job titles, hours, and wages.
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Employers are required to submit payroll reports showing employee pay rates and hours worked.
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Payroll records must be kept on-site for Department of Labor inspections.
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Employers on certain projects must support hiring goals for minority, women, and veteran-owned businesses.
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Employers must pay more for night shifts and holiday work when required by law.
Penalties for Prevailing Wage Noncompliance
25% of TotalPenalty for Willful Underpayment
Contractors who willfully underpay workers on prevailing wage projects may face a penalty of up to 25% of the wages, supplements, and interest owed to underpaid workers. This significant penalty emphasizes the importance of compliance to ensure workers receive fair compensation.
Up to 16% InterestAdditional Interest Penalty
Contractors found in violation may also be required to pay up to 16% annual interest on any owed wages, calculated from the date of underpayment until full restitution is made. This penalty is intended to compensate workers for the delayed payments they should have received.
DebarmentBanned from Future Contracts
Contractors with repeated violations may face debarment, barring them from bidding on public contracts in New York for up to five years. This penalty applies particularly to contractors with multiple willful violations within a six-year period.
TerminationContract Nullification
For serious breaches, such as falsifying payroll records, the contractor’s current contract can be terminated. They may also be excluded from future contracts involving public works for up to three years.
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Certified Payroll and Prevailing Wage in NYS
Certified payroll is important for making sure workers on public projects in New York are paid fairly. Employers must submit these reports to show that workers are receiving the correct wages for their jobs. The report includes details like each worker’s name, job title, hours worked, and hourly pay rate.
These payroll reports help protect workers. The New York Department of Labor checks them to ensure employers are following wage laws. If the reports show underpayment or mistakes, employers can face penalties. These include paying back wages with interest, fines, or even being banned from future public projects.
Employers must submit accurate payroll records. If they don’t or lie on these reports, they can face serious consequences. New York has strict rules to keep public project wages fair and to protect workers’ rights.
Certified payroll helps keep the construction industry fair. It ensures that public funds go to workers as intended and that everyone gets the pay they deserve.
Navigating Prevailing Wage Requirements in New York
Know Your Rights as a Worker
Under New York’s prevailing wage laws, workers on public projects have the right to fair pay that meets the state-mandated rates for their job classification.
Workers are entitled to receive the correct hourly wage, fringe benefits, and overtime pay. They should also be paid on time and be informed of the prevailing wage rates posted at their job site.
If workers believe they are being underpaid or misclassified, they have the right to file a complaint with the New York Department of Labor, which will investigate and enforce compliance.
Know What to Do as an Employer
Employers on New York public projects have several responsibilities to ensure they comply with prevailing wage laws:
- Determine the Correct Wage Rate: Employers must use the accurate prevailing wage rate for each job role and location. If there’s any uncertainty, they should consult the New York Department of Labor.
- Refer to the General Construction Rate Schedule: Employers should reference the General Construction Rate Schedule for up-to-date rates and job classifications to avoid errors.
- Maintain Detailed Payroll Records: Employers are required to keep thorough payroll records for at least six years. These records should include information like worker names, job classifications, hours worked, hourly wages, and benefits.
- Submit Certified Payroll Reports: Employers must regularly submit certified payroll reports to the contracting agency to prove compliance. These reports include details about pay rates and hours worked.
- Ensure On-Site Record Availability: Employers should keep payroll records on-site for possible inspections by the Department of Labor, which helps verify wage compliance.
- Follow Diversity and Inclusion Goals: On qualifying projects, employers must support state goals for hiring minority, women-owned, and veteran-owned businesses.
- Comply with Shift and Holiday Pay Requirements: Employers are responsible for paying night shift differentials and holiday premiums as required, ensuring fair compensation for non-standard working hours.
Failure to meet these responsibilities can result in penalties, including fines, interest on unpaid wages, and exclusion from future public contracts.
Common Prevailing Wage Challenges for Employers in New York
- Understanding and Applying the Correct Wage Rate: Employers may struggle to determine the accurate prevailing wage rate for specific job roles, especially if classifications or rates change.
- Maintaining Complete and Accurate Payroll Records: Detailed record-keeping is time-consuming and can be prone to errors, making it challenging to stay compliant.
- Meeting Certified Payroll Reporting Deadlines: Regular submission of certified payroll reports requires strict adherence to deadlines and can be administratively demanding.
- Navigating Requirements for Diversity and Inclusion Goals: Some employers may find it challenging to meet hiring goals for minority, women-owned, and veteran-owned businesses, especially on large public projects.
- Ensuring Compliance with Fringe Benefit Requirements: Accurately calculating and providing required fringe benefits, such as health insurance and pensions, can be complex.
- Managing Shift and Holiday Pay Requirements: Employers may overlook or struggle to apply night shift and holiday pay rules, resulting in underpayment risks.
Prevailing Wage Solutions for Employers in New York
- Consult the Department of Labor for Rate Clarification: When unsure about wage classifications, employers should reach out to the New York Department of Labor for guidance. This helps ensure accurate wage rates and classifications.
- Invest in Payroll Software for Compliance: Payroll software designed for prevailing wage compliance can simplify record-keeping, minimize errors, and help maintain detailed payroll records for audits.
- Set Up Regular Payroll Submission Checks: Employers can designate team members to review certified payroll reports before submission, ensuring that all required information is accurate and submitted on time.
- Partner with Local MWBE and Veteran-Owned Businesses: Building partnerships with local minority, women-owned, and veteran-owned businesses can help meet diversity goals, ensuring compliance with hiring requirements.
- Use Fringe Benefit Calculation Tools: Many payroll software programs offer tools that calculate fringe benefits based on current requirements, making it easier to comply with benefit obligations.
- Create a Compliance Checklist for Shift and Holiday Pay: Employers should develop a checklist for shift differentials and holiday pay to ensure these premiums are applied correctly.
General Best Practices for New York Prevailing Wages
Here are best practices help maintain smooth operations, minimize compliance risks, and ensure fair compensation for workers on public projects in New York.
- Stay Updated on Prevailing Wage Rates: Regularly check the New York Department of Labor’s website or resources for updates to wage rates and classifications.
- Implement a Compliance Training Program: Educate management and payroll staff on prevailing wage requirements to reduce errors and improve compliance.
- Audit Payroll Records Regularly: Periodic internal audits of payroll records can help identify any errors or omissions before they become compliance issues.
- Develop Relationships with Compliance Resources: Establish contacts with local unions, the New York Department of Labor, and compliance consultants who can provide support and guidance.
- Keep Detailed Documentation of Fringe Benefits: Maintain thorough records of all fringe benefit payments, including health insurance, pension contributions, and other benefits, to ensure compliance and support in case of audits.
Final Thoughts
Understanding and complying with U.S. Labor Laws and New York Labor Laws is essential for employers and workers on public projects. Following requirements for the prevailing wage in New York helps protect fair wages and ensures that public funds are used responsibly. Staying informed, keeping accurate records, and meeting certified payroll standards can help employers avoid penalties and support a fair work environment.
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In New York, the prevailing wage is the minimum pay rate required for workers on public works projects. This rate includes both base wages and fringe benefits, such as health insurance and pensions, and it varies by job classification and location. The New York State Department of Labor sets these rates to match the typical wages paid to workers in similar roles in specific regions.
The prevailing wage level is calculated by considering the job classification, geographic location, and the standard wages and benefits typically paid to workers in that field. State labor departments or agencies often set these rates based on local surveys or union agreements. To determine the exact wage level, employers should reference state or federal prevailing wage schedules for the relevant job and area.
States like California and New York often have some of the highest prevailing wages, especially for skilled trades in urban areas. Rates are high due to factors like cost of living and union-negotiated wages, making these states among the top for prevailing wage levels.
The local prevailing wage is the specific rate set for a job classification within a particular region or county. These rates vary across locations to reflect local economic conditions and wage standards. Local prevailing wages are typically used to ensure workers on public projects receive fair compensation based on what other workers in similar roles earn in the area.
