A coalition of construction industry groups, contractors, and business organizations has filed a federal lawsuit challenging a recently enacted New York law that expands prevailing wage requirements to certain off-site manufacturing and fabrication facilities.
The lawsuit, filed in U.S. District Court for the Northern District of New York, seeks to block enforcement of an amendment to the state’s prevailing wage law before it takes effect on June 18. The plaintiffs are also requesting a temporary restraining order and preliminary injunction while the case moves forward.
The challenged law requires companies that produce custom-fabricated products for New York public works projects — including structural steel, precast concrete, electrical duct systems, rebar cages, curtain wall systems, and mechanical insulation — to register with the state, pay prevailing wages, and submit certified payroll records, regardless of where the fabrication work occurs. The requirements would apply to facilities located both inside and outside New York.
Among the organizations bringing the lawsuit are the Associated General Contractors of New York State, the Business Council of New York State, the Associated General Contractors of America, the National Electrical Contractors Association, and several construction-related trade groups and companies. The suit names Governor Kathy Hochul, Labor Commissioner Roberta Reardon, Attorney General Letitia James, and other state officials as defendants.
The plaintiffs argue the law is unconstitutional and unworkable. Their complaint alleges the measure improperly regulates interstate and international commerce, contains vague definitions that make compliance difficult, interferes with existing labor agreements, and creates unequal treatment among different sectors of the construction industry.
The lawsuit also claims the law would create significant challenges for contractors and manufacturers. Industry groups contend general contractors could be held responsible for wage compliance by fabricators operating in facilities they do not control, while manufacturers serving multiple projects simultaneously would face complex tracking and reporting requirements. They also argue the law could increase costs for public infrastructure projects and discourage some suppliers from bidding on New York projects.
“This law, as written, is unconstitutional, unworkable, and will inflict serious harm on the very industry that builds New York’s public infrastructure—as well as New York’s taxpayers,” said Mike Elmendorf, president and CEO of the Associated General Contractors of New York State. “Off-site fabrication is not public works construction—it is manufacturing.”
The coalition is asking the court to halt enforcement of the amendment and ultimately declare it unconstitutional. If a preliminary injunction is granted, the existing prevailing wage framework would remain in place while the case proceeds through the courts.
