New York Construction Employers Face New Reporting and Shift Cancellation Pay Requirements, by Andrew L. Richards, Esq., 9-22-2026

Beginning December 8, 2026, New York’s Construction Reporting Pay Act will require covered construction employers to provide minimum pay when employees report for work and when scheduled shifts are canceled with less than 12 hours’ notice.

New York State Governor Kathy Hochul signed the Act (S.9843/A.6950) on September 9, 2026. Enacted as Chapter 291 of the Laws of 2026, the Act adds Sections 196-e and 224-g to the New York Labor Law and establishes separate requirements for construction employees generally and for laborers, workers and mechanics on projects covered by specified prevailing-wage statutes.

Reporting Pay Requirements
Under new Labor Law Section 196-e, an employee engaged in construction, as defined in Labor Law Section 861-b(1), who reports for work at the employer’s request or permission must be paid for at least four hours—or the employee’s regularly scheduled shift, if shorter—at the employee’s promised hourly wage.

For projects covered by specified prevailing-wage statutes, new Labor Law Section 224-g requires a laborer, worker or mechanic who reports for work at the employer’s request or permission to receive at least four hours of compensation at the prevailing wage rate, including applicable supplements, for the employee’s regularly scheduled classification.

Section 224-g provides that it does not apply when the posted prevailing-wage schedule provides reporting-pay wages or benefits greater than those required by the new law. Employers should review applicable prevailing-wage schedules and monitor any New York State Department of Labor guidance concerning the application of this exception.

Pay for Late Shift Cancellations
The Act also requires covered employees to receive two hours of pay when a scheduled shift is canceled with less than 12 hours’ notice.

Employees covered by Section 196-e must be paid at their promised hourly wage. Employees covered by Section 224-g must receive the applicable prevailing wage rate, including supplements.

The statutory text does not enumerate exceptions for weather, delayed materials, failed inspections, emergencies or other common scheduling disruptions. Unless and until the New York State Department of Labor issues regulations or guidance, employers should not assume that such circumstances eliminate a reporting-pay or short-notice cancellation-pay obligation.

Potential Wage-and-Hour Exposure
Amounts owed under Section 196-e are deemed wages under the Labor Law, while amounts owed under Section 224-g are deemed prevailing wages or supplements. Nonpayment may therefore implicate New York’s wage-payment or prevailing-wage enforcement mechanisms, as applicable.

Preparing for the Effective Date
Before the law takes effect on December 8, construction employers should consider the following:

• Identify employees and projects covered by the new requirements;
• review prevailing-wage schedules and collective bargaining agreements;
• establish procedures for assigning and canceling shifts;
• document when cancellation notices are communicated;
• confirm that payroll systems can calculate the required payments at the correct rate; and
• train supervisors, dispatchers, field managers and payroll personnel.

Employers should pay particular attention to which personnel are authorized to assign or cancel shifts because informal communications from supervisors may trigger payment obligations.

The Act authorizes the New York State Department of Labor to adopt implementing regulations. Employers should monitor any additional guidance issued before the effective date and consult experienced employment counsel regarding how the requirements apply to their operations.

Author:
Andrew L. Richards
Co-Chair of KD’s Construction Practice Group