Proposed 485-b Changes Could Expand Prevailing Wage Rules

This episode of On the Level examines proposed New York State legislation (Senate Bill S9052) that could mandate prevailing wage requirements or Project Labor Agreements (PLAs) for certain private construction projects in Orange County.

Key Topics Covered:

• Section 485-b Overview: Explains how New York's 485-b program currently provides a 10-year phased property tax exemption for commercial and industrial property improvements without triggering prevailing wage mandates on its own.
• Proposed Legislative Changes: Details Section 4 of Senate Bill S9052, which would require private projects receiving 485-b tax exemptions or Orange County IDA PILOT agreements to comply with NY Labor Law Article 8 prevailing wages or utilize a PLA.
• Contractor & Financial Impact: Outlines the potential for higher labor costs, increased payroll compliance burdens, and shifts in subcontractor pricing and project margins for local builders.
• Actionable Advice for Bidders: Recommends that contractors inquire early in the bidding process whether a project receives 485-b exemptions or IDA benefits so that labor costs can be accurately estimated.