In December 2025, Governor Hochul signed legislation (S.2536-A/A.2747-A) expanding NYS prevailing wage requirements to certain off-site custom fabrication work for public projects.
The key changes are as follows:
- Expanded Definition of Public Work: The bill modifies the definition of “public work” to include off-site fabrication of items such as wall panels, woodworking, plumbing, HVAC, and mechanical insulation when designed for a public works project.
- Reporting Requirements: Contractors must report planned off-site fabrication to the state for contract approval, with disclosure required online.
- Prevailing Wage Obligations: Workers engaged in off-site fabrication must be paid prevailing wages and supplemental benefits. This requirement applies even if the off-site fabrication occurs outside of New York State.
- Effective Date: The law was signed on December 20, 2025, and becomes effective 180 days after that, as of June 18, 2026, the law is effective. Per the bill, the law applies only to those contracts put out to bid on or after the effective date which is June 18, 2026.
The law may exempt certain transportation and affordable housing projects from the new off-site prevailing wage requirements. Contractors should monitor the proposed amendments, which could narrow the scope of the law once enacted.
Recommended Actions for Impacted Parties
- Review supply chains for off-site custom fabrication tied to public project specifications.
- Update compliance protocols, payroll tracking, and vendor agreements to account for prevailing wage obligations when the law takes effect and as amendments are approved.
- Check with legal counsel regarding potential impacts on certified payroll.
