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    Senate Budget Report, Dated June 16, 1971, From Bill Jacket To S 1943-A

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    1. This document summarizes a bill that would require contractors providing building service contracts over $2,500 with New York state or local governments to pay their employees prevailing wages and benefits. 2. It provides background on previous similar bills and argues the current bill addresses objections to prior versions. It notes potential costs to state and local governments but recommends approving the bill. 3. The division of the budget estimates an initial $150,000 cost to the state for administration and unknown costs to local governments, but that excluding such contracted workers from prevailing wage laws is difficult to support.

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    Senate Budget Report, Dated June 16, 1971, From Bill Jacket To S 1943-A

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    72 views3 pages
    1. This document summarizes a bill that would require contractors providing building service contracts over $2,500 with New York state or local governments to pay their employees prevailing wages and benefits. 2. It provides background on previous similar bills and argues the current bill addresses objections to prior versions. It notes potential costs to state and local governments but recommends approving the bill. 3. The division of the budget estimates an initial $150,000 cost to the state for administration and unknown costs to local governments, but that excluding such contracted workers from prevailing wage laws is difficult to support.

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    Senate Budget Report, dated June 16, 1971, from Bill Jacket to S 1943-A

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    1. This document summarizes a bill that would require contractors providing building service contracts over $2,500 with New York state or local governments to pay their employees prevailing wages and benefits. 2. It provides background on previous similar bills and argues the current bill addresses objections to prior versions. It notes potential costs to state and local governments but recommends approving the bill. 3. The division of the budget estimates an initial $150,000 cost to the state for administration and unknown costs to local governments, but that excluding such contracted workers from prevailing wage laws is difficult to support.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    72 views3 pages

    Senate Budget Report, Dated June 16, 1971, From Bill Jacket To S 1943-A

    Uploaded by

    adfsh-1
    1. This document summarizes a bill that would require contractors providing building service contracts over $2,500 with New York state or local governments to pay their employees prevailing wages and benefits. 2. It provides background on previous similar bills and argues the current bill addresses objections to prior versions. It notes potential costs to state and local governments but recommends approving the bill. 3. The division of the budget estimates an initial $150,000 cost to the state for administration and unknown costs to local governments, but that excluding such contracted workers from prevailing wage laws is difficult to support.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    FILED: NEW YORK COUNTY CLERK 08/28/2020 05:56 PM INDEX NO.

    151032/2012
    NYSCEF DOC. NO. 311 RECEIVED NYSCEF: 08/28/2020
    30-DAY BILL
    e-20, BUDGET REPORT ON BILLS Senion Year: 1, 7:1,

    SENATE Introduced by: ASSEMBLY

    No. 1943·-A Mr. Laverne No.

    La...•: Labor Sections: Article 9 (new)

    Division of the;• Budget recommendotit>n on the above bill:

    __ X_.____ Veto:------ No Objection; ______ No Recommendation: ---

    l. Subject 0nd Purpose: To require payment of prevailing wages and fringe benefits
    to employees who work under building service contracts with State and local
    governmental agencies.
    2. Summary of provisions: The Labor Law new requires that employees
    engageu in work 011 "public works" (construction of public roads and facilities)
    must .be paid the prevailing wage available to employees working for contracto.rs ·
    on private c.:.onstruction jobs. There is no such provision governing the
    wages or other working conditions of employees working for contractor~
    providing a servi~e to the State and local governments.
    This bill would add a new Article 9 in the Labor Law under which
    prevailing wages and benefits would have to be paid employees of contractors
    who have building service contracts in excess of $2,500 with the State or
    othero uni ts of government. Labor Law provisions now applicable to certain
    other employees prohibiting discrimination, requiring contractors to have
    sufficient funds to meet their payroll and requiring additional compcrnsation
    for work in excess of a standard workday, would be extended to those
    covered under this bill.
    Prevailing wages would be determined by the fiscal officers of cities
    and by the .industrial Commissioner for other governmental units.
    The bill would take effect April 1, 1972.
    3. Legislative history: A 1969 measure (S. 4468) would have extended
    coverage of the "public works" prevailing wage law to all service employees.
    That measure was passed by the Senate but died in the Assembly. It was
    then amended in 1970 (S. 4468-B) to a version similar to the present
    measure but without the present safeguards and restrictions. That measure
    passed the Senate with a message of necessity from the Governor but died
    in the Assembly Rules Committee.
    4. Arguments in support: (a) Currently, the State exclndes service
    employees of private c.ontracto··$ pe1·forming public J.t9.~rk from coverage
    under the prevailing wage provisions. There appeaf~;;:tittle support for
    this exclusion since construction employees of other private contractors
    performing public work are included under that provision. The principal
    cost in service contracts is for the labor involved. A contractor who

    De,,, Examiner:_

    Disposition: Chapter No. Veto Ho.

    Digitized by the New York State Library from the Library's collections.
    FILED: NEW YORK COUNTY CLERK 08/28/2020 05:56 PM INDEX NO. 151032/2012
    NYSCEF DOC. NO. 311 RECEIVED NYSCEF: 08/28/2020

    Labor - 2 - 1971

    can provide a service by paying rates below the prevailing wage will be
    able to underbid his competitors paying prevailing wages. It should be
    noted that the former are most likely nonunion organizations while the
    latter tend to be employers whose employees are organized.
    (b) Mandating that building service cont.,,.actors pay a prevailing wage
    would appear to satisfy the demands of unions representing such employees
    while insuring that employees of service contractors on State and local
    projects receive wages commensurate with the standards of the community
    served. There is no compulsion for the State or local governments to
    contract only with union shops.
    (c) This bill, unlike earlier versions, would clearly not apply to
    any public employees. A major objection to past bills was the possible
    establishment of a precedent of extending prevailing wage provisions to
    public employees, at potential costs in the ten's of millions of dollars.
    5. Possible objecti:ons :(a) The State Department of Labor has pointed out,
    in an April 7, 1971 memorandum to Michael Whiteman, that municipalities
    may be required to. make additional expenditures under this bill as well as
    being confronted with demands from their .own employees for increased wages.
    The memorandum note.s that, "In the light of the burden that .this bill ·
    would impose on municipalities, and in the absence of a clearly established
    need, it is questi·:mable whether this bill is justified." We have learned,
    however, that the Department .does not have any statistics to indicate the
    potential impact of this measure and the policy which justifies such
    eicpenditure is already enunciated by the existing prevailing wage provisions.
    (b) It may be argued that all service employees working for contractors
    providing services to the State and local governments should be covered
    by these provisions. Apparently the bulk of such employees will be
    coverec by this bill.
    6. Other Stat0 agencies interested: The present bill was drafted by the
    State Department of Labor and, although not a departmental measure, has
    been considered to be an Administration bill. The Office of General
    Services would have an interr;st in this bill.
    7. Known position of others: This bill is a high priority measure of
    the New York State Legislative Conference of Building Service Unions.
    8. Budget imfi:lications: The State has some $1 million worth of contracts
    of the type w ich would~e !l?,YRred ly this bill. While no information is
    available as to numbersA~e-~hy such contracts who are currently bt.~ing
    paid.prevailing wages, the cost of this proposal to the State should be
    modest.

    Digitized by the New York State Library from the Library's collections.
    FILED: NEW YORK COUNTY CLERK 08/28/2020 05:56 PM INDEX NO. 151032/2012
    NYSCEF DOC. NO. 311 RECEIVED NYSCEF: 08/28/2020

    Labor - 3 - 1971

    There would be an annual cost to the State for administration,


    estimated at $150,000 in 1972~73. We have no estimate of the costs to
    local governments.
    9. Recommendation: Although this me:asure will mandate additional
    expenditures on the State and localities, it is exceedingly difficult to
    support the continued exclusion of building service employees engaged by
    private. contractors with public contracts from prevailing wage provisions.
    Accordingly, we recommend that this bill be approved. · ·

    C)

    Date: June 16 1 1971

    JPS:ck
    Disposition:

    Digitized by the New York State Library from the Library's collections.

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