New York State Contractor Registration Requirements In Effect, by Seth Meyer, Esq., 12-30-2024

Starting December 30, 2024, all contractors and subcontractors submitting bids or performing construction work on public works projects or certain private projects covered by Article 8 of the Labor Law are now required to register with the New York State Department of Labor as part of an amendment to Labor Law Section 220-I.

The goal of the amendment and registration system is “to ensure the contractors do not have previous labor law violations and will abide by New York labor laws and regulations, including prevailing wage requirements.”

Covered Projects

 The new reporting requirements apply to public projects and private projects subject to Article 8 of the Labor Law, including Sections 224-a (public subsidy funded projects), 224-d (renewable energy systems), 224-e (broadband projects), 224-f (climate risk-related and energy transition projects, and roadway excavations), according to DOL.

The law defines a contractor as “any entity entering into a contract to perform construction, demolition, reconstruction, excavation, rehabilitation, repair, installation, renovation, alteration, or custom fabrication.” The law defines subcontractor as “any entity subcontracting with a contractor to perform construction, demolition, reconstruction, excavation, rehabilitation, repair, installation, renovation, alteration, or custom fabrication.” Contractors are responsible for verifying that any subcontractors they work with are registered, according to the DOL.

Registration Requirements

 To register, contractors or subcontractors must submit an application through NYSDOL’s Contractor Registry Portal (for more registration details see here). They will be required to provide certain information including but not limited to:

• The name, principal business address and telephone number of the contractor or subcontractor;
• Whether the contractor is a person, partnership, association,
  joint stock company, trust, corporation, or other form of business
  entity;
• Whether the business was subject to any final determinations of violations of any labor laws or employment tax laws.
• Whether the business has any OSHA violations
• Whether the contractor or subcontractor has any outstanding wage assessments;
• Whether the contractor or subcontractor has been debarred under New York or federal law within the last eight years; and
• Status as a New York State certified minority or women-owned business enterprise.

Contractor registration data will be available to the public at New York’s Open Data website after December 30, 2024. NYSDOL will not be disclosing any personally identifiable information, including home addresses and percentages of ownership interest in privately held entities.

Registration Deadlines

• Contractors need to register before submitting any new bids or commencing new work on a covered project on or after December 30, 2024.
• Subcontractors need to register before commencing new work on a covered project on or after December 30, 2024. 

NYSDOL encourages all contractors and subcontractors to register as soon as possible to obtain a Certificate of Registration to avoid negatively impacting a bid or project schedule. NYSDOL estimates it may take approximately 3-4 weeks to review a registration application and issue a Certificate of Registration. Registration is not valid until a Certificate of Registration has been issued. 

Each registration certificate is valid for two calendar years from the date of issuance, according to the DOL. Contractors and subcontractors must renew their registration at least 90 days before the expiration date of their current registration. 

Keep in mind that a contractor or subcontractor’s application can be declined and a contractor or subcontractor’s Certificate of Registration can be suspended or revoked if they are deemed “unfit”.  A contractor or subcontractor will be deemed unfit to register if they are: (i) currently debarred or ineligible pursuant to Section 220-b(3) of the Labor law or Section 141-b of the Workers’ Compensation Law; or (ii) currently subject to a final administrative or court order for violation of state or federal prevailing wage law which has not been fully satisfied. Contractors and subcontractors who are deemed unfit may appeal the decision.

Monitoring, Compliance and Enforcement 

Various participants to a covered project, such as municipal agencies, private developers receiving public subsidiaries or other covered parties are required to confirm that their contractors and subcontractors are registered before they start work. NYSDOL has the authority to issue stop works orders to projects outside of New York City and the New York City Comptroller has authority over City contracts.

Contractors and subcontractors who bid on start work without being registered may be subject to various fines and penalties for noncompliance including but not limited to civil penalties of up to $1,000. Moreover, contracts could be held liable if they knowingly engage unregistered subcontractors

Author: Of Counsel Seth Meyer