NY Expands Prevailing Wage Requirements to Off-Site Custom Fabrication on Public Works, by Andrew Richards, Esq., 12-29-2025

On December 20, 2025, New York State Governor Kathy Hochul signed legislation (S.2536-A/A.2747-A) into law, expanding New York Labor Law prevailing wage requirements to certain off-site custom fabrication work performed for public improvement projects.​

Key Provisions

• The law expands the definition of “public work” to include off-site fabrication of items such as exterior/interior wall panels, custom woodwork (cases, cabinets, counters), plumbing/HVAC/ventilation duct systems, and mechanical insulation, when solely designed for a specific public project.
• Contracting agencies must report planned off-site fabrication to the fiscal officer for contract approval, with public disclosure required online.
• Workers engaged in covered off-site fabrication must receive prevailing wages and supplements, including off-site fabrication outside of New York State.
• The law takes effect 60 days after signing (around February 2026).

Governor’s Chapter Amendment
Governor Hochul has requested a chapter amendment to exempt certain transportation and affordable housing projects from the new off-site prevailing wage requirements.
Stakeholders should monitor the proposed amendments, which could narrow the law’s scope once enacted.

Action Items for Contractors and Subcontractors

Those covered by the law should consider:

• Reviewing supply chains for off-site custom fabrication tied to public project specifications (e.g., precast concrete, structural steel, elevators).
• Updating compliance protocols, payroll tracking, and vendor agreements to account for prevailing wage obligations starting February 2026, pending any chapter amendments.

Author: Andrew Richards, Co-Chair of KD’s Construction Practice Group and Co-Managing Partner of the Long Island office