New York A 10740: Relates to owner liability for construction industry wage theft

Bill Text

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A10740 Summary:

BILL NOA10740 

&nbsp

SAME ASNo Same As

&nbsp

SPONSORValdez

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §198-e, Lab L

&nbsp

Provides for owner liability related to construction industry wage theft.

Go to top A10740 Actions:

BILL NOA10740 

&nbsp

03/27/2026referred to labor

Go to topA10740 Committee&nbspVotes:

Go to topA10740 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA10740 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 10740

 IN ASSEMBLY

 March 27, 2026
 ___________

 Introduced by M. of A. VALDEZ -- read once and referred to the Committee
 on Labor

 AN ACT to amend the labor law, in relation to owner liability for
 construction industry wage theft

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Section 198-e of the labor law, as added by chapter 419 of
 2 the laws of 2021 and subdivisions 1, 2, 4, 9 and 10 as amended by chap-
 3 ter 157 of the laws of 2022, is amended to read as follows:
 4 § 198-e. Construction industry wage theft. 1. A contractor and an
 5 owner making or taking a construction contract shall be jointly and
 6 severally liable for any debt resulting from an action under section one
 7 hundred ninety-eight of this article, owed to an employee or third party
 8 on the employee's behalf, incurred by a subcontractor at any tier acting
 9 under, by, or for the contractor or its subcontractors or the owner for
 10 the employee's performance of labor. The provisions of this section
 11 shall not be deemed to limit the liability of a subcontractor under
 12 section one hundred ninety-eight of this article.
 13 2. No agreement or release by an employee or subcontractor to waive
 14 liability of a contractor or owner under this section shall be valid
 15 except as otherwise provided herein. The provisions of this section
 16 shall not be deemed to impair the rights of a contractor or owner to
 17 maintain an action against a subcontractor for amounts for owed wages
 18 that are paid by a contractor or owner pursuant to this section.
 19 3. Notwithstanding any other provision of law, the remedies available
 20 for a claim pursuant to subdivision one of this section shall only be
 21 civil and administrative actions.
 22 4. In the case of a private civil action by an employee, such employee
 23 may designate any person, organization or collective bargaining agent
 24 authorized to file a complaint with the commissioner pursuant to section
 25 one hundred ninety-six-a of this article, to make a claim pursuant to
 26 this section on [his or her] such employee's behalf.
 27 5. In the case of an action against a subcontractor, the contractor
 28 and the owner shall be considered jointly and severally liable for any

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD15306-01-6

 A. 10740 2

 1 unpaid wages, benefits, wage supplements, and any other remedies avail-
 2 able pursuant to the requirements of section one hundred ninety-eight of
 3 this article.
 4 6. Nothing herein shall preclude the attorney general from bringing a
 5 civil action to collect unpaid wages and penalties on behalf of employ-
 6 ees pursuant to this section.
 7 7. A contractor, owner or any other person shall not evade, or commit
 8 any act that negates, the requirements of this section, provided, howev-
 9 er, that this section shall not be deemed to prohibit a contractor,
 10 owner or subcontractor from establishing by contract or enforcing any
 11 other lawful remedies against a subcontractor it hires for liability
 12 created by violation of this section, provided that such contract or
 13 arrangement does not diminish the right of employees to bring an action
 14 under the provisions of this section.
 15 8. As used in this section:
 16 a. "Construction contract" means a written or oral agreement for the
 17 construction, reconstruction, alteration, maintenance, moving or demoli-
 18 tion of any building, structure or improvement, or relating to the exca-
 19 vation of or other development or improvement to land. For purposes of
 20 this section, a construction contract shall not include: any contract
 21 which is subject