Business groups in New York are worried the Legislature
in Albany could approve a law that would expand the state's prevailing wage law
to include projects financed by industrial development agencies.
"We're deeply concerned," said Brian T. McMahon, executive director of the New York State Economic Development Council.
The law would require prevailing wages be paid on most
projects that receive any amount of state financial support, according to an
opposition memo written by another group, The Business Council of New York
State Inc.
That means private developers who receive tax breaks or
other assistance from an industrial development agency or a local development
corporation would be required to pay prevailing wages during every phase of
construction, from site surveys to cleanup, according to the Business Council.
Prevailing wage is already required in New York when
private contractors are hired to build or maintain public works projects. The
law, if approved, would broaden the definition of "public works."
Business groups say expanding the prevailing wage
requirement would drive up costs and make New York even less competitive.
Prevailing wage rates vary by locality, job title and
other factors. The rate is pegged to the amounts paid to unionized construction
workers.
The legislation (A.10141/S.07861) was reported out of the
Labor Committee in the Republican-led Senate and onto the floor, meaning it
could be voted on before the session is scheduled to end June 15. It's
sponsored by Sen. Jack Martins, a Long Island Republican.
In the Democrat-controlled Assembly, the legislation cleared
the Labor Committee and was referred to the Codes Committee. The sponsor is
Assemblyman Harry Bronson, a Rochester Democrat.
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