N.Y. Lab. Law § 198-e

* § 198-e. Construction industry wage theft. 1. A contractor making or\ntaking a construction contract shall assume liability for any debt\nresulting from an action under section one hundred ninety-eight of this\narticle, owed to a wage claimant or third party on the wage claimant's\nbehalf, incurred by a subcontractor at any tier acting under, by, or for\nthe contractor or its subcontractors for the wage claimant's performance\nof labor.\n 2. No agreement or release by an employee or subcontractor to waive\nliability assigned to a contractor under this section shall be valid\nexcept as otherwise provided herein. The provisions of this section\nshall not be deemed to impair the rights of a contractor to maintain an\naction against a subcontractor for amounts for owed wages that are paid\nby a contractor pursuant to this section.\n 3. Notwithstanding any other provision of law, the remedies available\nfor a claim pursuant to subdivision one of this section shall only be\ncivil and administrative actions.\n 4. In the case of a private civil action by an employee, such employee\nmay designate any person, organization or collective bargaining agent\nauthorized to file a complaint with the commissioner pursuant to section\none hundred ninety-six-a of this article, to make a wage claim on his or\nher behalf.\n 5. In the case of an action against a subcontractor, the contractor\nshall be considered jointly and severally liable for any unpaid wages,\nbenefits, wage supplements, and any other remedies available pursuant to\nthe requirements of section one hundred ninety-eight of this article.\n 6. Nothing herein shall preclude the attorney general from bringing a\ncivil action to collect unpaid wages and penalties on behalf of\nemployees pursuant to this section.\n 7. A contractor or any other person shall not evade, or commit any act\nthat negates, the requirements of this section, provided, however, that\nthis section shall not be deemed to prohibit a contractor or\nsubcontractor from establishing by contract or enforcing any other\nlawful remedies against a subcontractor it hires for liability created\nby violation of this section, provided that such contract or arrangement\ndoes not diminish the right of employees to bring an action under the\nprovisions of this section.\n 8. As used in this section:\n a. "Construction contract" means a written or oral agreement for the\nconstruction, reconstruction, alteration, maintenance, moving or\ndemolition of any building, structure or improvement, or relating to the\nexcavation of or other development or improvement to land. For purposes\nof this section, a construction contract shall not include: any contract\nwhich is subject to article eight of this chapter; a home improvement\ncontract for the performance of a home improvement between a home\nimprovement contractor and the owner of an owner-occupied dwelling; and\na home construction contract for one- or two-family dwelling units\nexcept where such contract or contracts results in the construction of\nmore than ten one- or two-family owner-occupied dwellings at one project\nsite annually.\n b. "Contractor" means any person, firm, partnership, corporation,\nassociation, company, organization or other entity, including a\nconstruction manager, general or prime contractor, joint venture, or any\ncombination thereof, which enters into a construction contract with an\nowner.\n c. "Owner" means any person, firm, partnership, corporation, company,\nassociation or other organization or other entity, or a combination of\nany thereof, (with an ownership interest, whether the interest or estate\nis in fee, as vendee under a contract to purchase, as lessee or another\ninterest or estate less than fee) that causes a building, structure or\nimprovement, new or existing, to be constructed, altered, repaired,\nmaintained, moved or demolished or that causes land to be excavated or\notherwise developed or improved.\n d. "Subcontractor" means any person, firm, partnership, corporation,\ncompany, association, organization or other entity, or any combination\nthereof, which is a party to a contract with a contractor, and/or party\nto a contract with the contractor's subcontractors at any tier to\nperform any portion of work within the scope of the contractor's\nconstruction contract with the owner, including where the subcontractor\nhas no direct privity of contract with the contractor.\n 9. Any liability assigned to a contractor pursuant to the provisions\nof this section shall be applicable for any claims occurring no later\nthan three years prior to the initiation of such claim in a court of\ncompetent jurisdiction or the commencement of a civil action brought\nforth by the attorney general or department. The provisions of this\nsection shall not be deemed to diminish, impair, or otherwise infringe\non any other rights of an employee provided pursuant to this chapter,\nincluding the right of an employee to bring an action against any\nemployer under the provisions of section one hundred ninety-eight of\nthis article.\n 10. Nothing in this section shall be deemed to diminish the rights,\nprivileges, or remedies of any employee under any collective bargaining\nagreement. The provisions of this section may be waived by a collective\nbargaining agreement with a bona fide building and construction trade\nlabor organization which has established itself, and/or its affiliates,\nas the collective bargaining representative for persons performing work\non a project, provided that for such waiver to be valid, it shall\nexplicitly reference this section. Provided, however, that such waiver\nshall not diminish or impair the rights of an employee provided under\nany other section of this chapter.\n * NB Effective January 4, 2022\n