Fixing NYS Labor Law 224-a Will Protect Workers and Promote Fair Competition
Next week, May 5th starts the annual National Construction Safety Week, and this year’s theme is “We’re All In Together – Building A Stronger and Safer Industry.” Across New York City, our union contractors will take time with their crews and together recommit themselves to their own part in keeping our construction sites safe. While construction work is inherently dangerous, union contractors take great pride in having the safest sites in New York. Our analysis of New York City Department of Buildings data shows that 80% of accidents are happening on non-union construction sites, reconfirming that sites run by union contractors are much safer.
Our local industry of $60 Billion annually spurs significant economic development and much of which is growth through the respectable wages our contractors pay as their crews build new homes, schools and improve our public transit. They know these projects should reflect the best of our industry for the workers who build them. That is especially true when the projects are funded in part by taxpayer dollars. This is common sense: 77% of New Yorkers agree that these projects should pay the prevailing wage, according to a recent Siena Poll commissioned by the New York State Building Trades.
But right now, a broken and ineffective system is allowing taxpayer-funded development to undermine these ideals.
NYS Labor Law 224-a was passed with the right intent: to ensure that when private developers accept taxpayer dollars, they meet the same standards for safety as fully publicly-funded projects, which require the highest standards in our industry. But unfortunately, in the last five years the law has proven nearly impossible to enforce. And just six projects have qualified under 224-a in four years, evidence that the law’s vague definitions, convoluted thresholds, and toothless enforcement structure are failing workers and responsible contractors alike.
The result of this law has been a playing field tilted toward bad actors: developers who underbid, cut corners on safety, and drive down labor standards while pocketing taxpayer dollars. This is not how a healthy, competitive construction market should function.
The State Legislature has proposed a fix with reforms to 224-a that would change the law and clarify better how public subsidies are defined, ensuring fair and transparent thresholds, and empowering the New York State Department of Labor—not a dysfunctional board—to enforce the statute, we can finally give 224-a the teeth it needs to work. These changes would support quality contractors who follow the rules, protect workers on the ground, and restore confidence in how public money is spent.
The State Legislature has already recognized the urgency by including these reforms in their one-house budgets. Now it’s time for Governor Hochul and legislative leaders to finish the job and pass a state budget with the proposed changes. Fixing 224-a is a chance to uphold core values of fairness, transparency, and respect for the people who build this state.
Let’s make sure public subsidies serve the public interest. Let’s ensure safety and fairness are the standard, not the exception. And let’s create a construction market that rewards integrity. The moment to act is now because not just this Construction Safety Week but for always We’re All In Together Building A Stronger Safer Industry.
Elizabeth Crowley is the President & CEO of the Building Trades Employers’ Association, representing the largest contractor association in America
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