New York Enacts Law Requiring Contractor Registration for Public and Select Private Projects
Starting December 30, 2024, contractors and subcontractors in New york will need to register with the state before submitting bids or begining work on public or certain private construction projects. The new law, enforced by the New York State Department of Labor (NYSDOL), aims to enhance accountability and protect workers in the construction industry.
Under the regulation, contractors must register prior to submitting any new bids or commencing work on projects covered by the law. Similarly, subcontractors are required to register before starting new work on these projects. The registration mandate applies to public works projects and specific private projects governed by Article 8 of the New York Labor Law.
private projects subject to this law include those funded by public subsidies, renewable energy systems, broadband infrastructure, climate risk mitigation initiatives, energy transition projects, and roadway excavation work. By ensuring all contractors and subcontractors are registered, the state hopes to streamline project management and reduce potential delays.
NYSDOL is urging all contractors and subcontractors to register as early as possible to secure thier Certificate of Registration and avoid any disruptions in the bidding process or project timelines.labor Commissioner Roberta Reardon emphasized the importance of this initiative, stating, ”This law provides public funding accountability that will benefit law-abiding contractors and subcontractors while cutting off those who seek to exploit workers.”
To register, contractors and subcontractors must complete an application through the NYSDOL Contractor registry portal. Applications must be submitted electronically, and all fees must be paid via credit card.Registrants are also required to provide details about their company, unemployment insurance registration, past workplace safety or tax violations, and proof of workers’ compensation insurance.
Upon approval, a Certificate of Registration will be issued electronically. Contractors and subcontractors are advised to download and print the certificate, as registration is not valid until this document is issued. The state estimates that the approval process may take three to four weeks, with incomplete or inaccurate applications perhaps causing delays.
If an application is denied, registrants have 30 days to address the issue or request a hearing. Each registration certificate is valid for two years, and renewal must occur at least 90 days before the current registration expires.The status of applications and certificates can be checked at any time through the registry portal.
For more information,the NYSDOL website features a frequently asked questions section to assist contractors and subcontractors in navigating the registration process.
Key Takeaways for Contractors and Subcontractors
- register before December 30, 2024, to avoid delays in bidding or project schedules.
- Ensure all required documentation, including proof of workers’ compensation insurance, is submitted.
- Renew registrations at least 90 days before expiration to maintain compliance.
this new law represents a significant step toward improving transparency and accountability in New York’s construction industry, ensuring that all parties involved adhere to state regulations and protect workers’ rights.
For contractors and subcontractors,staying informed and proactive about registration requirements is crucial to maintaining compliance and securing future projects in New York.
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### **”Navigating New York’s Contractor Registration Law: An Expert Interview on Public and Private Project Compliance”**
Starting December 30, 2024, contractors and subcontractors in New York will face a significant change in how they operate. A new law, enforced by the New York State department of Labor (NYSDOL), requires registration for both public and select private construction projects.This mandate aims to enhance accountability, protect workers, and streamline project management. To help contractors and subcontractors understand this critical update, we sat down with **John Thompson**, a construction law specialist and industry expert, for an in-depth discussion on the new regulations, their implications, and how to ensure compliance.
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### **Understanding the New Contractor Registration Law**
**Senior Editor (SE):** John,thanks for joining us today.Let’s start with the basics. What exactly is this new contractor registration law, and why was it enacted?
**John thompson (JT):** Absolutely, happy to help. The new law requires contractors and subcontractors to register with the NYSDOL before they can submit bids or begin work on public or certain private construction projects. This includes projects funded by public subsidies, renewable energy systems, broadband infrastructure, and other key initiatives. The goal is to create a more accountable and obvious construction industry. By ensuring all parties are registered, the state can better monitor compliance, protect workers’ rights, and prevent exploitation.
**SE:** That makes sense. But why now? What specific issues is this law addressing?
**JT:** The law is a response to several challenges in the industry. for example, there have been cases of unregistered contractors taking on projects without proper oversight, which can lead to safety violations, wage theft, and other issues.By requiring registration, the state can ensure that all contractors and subcontractors meet basic standards, including having workers’ compensation insurance and complying with labor laws.It’s about leveling the playing field for law-abiding businesses while cutting out those who don’t play by the rules.
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### **Who does the Law Apply To?**
**SE:** Who exactly needs to register under this law? Is it just contractors,or does it include subcontractors as well?
**JT:** Both contractors and subcontractors are required to register. This includes anyone working on public works projects or the specific private projects I mentioned earlier. The law applies to a wide range of industries, from renewable energy to roadway excavation. The idea is to cover as many projects as possible to ensure consistent oversight and accountability.
**SE:** Are there any exceptions? Such as, do smaller contractors or private projects not funded by public subsidies fall outside the scope of this law?
**JT:** Generally, if a project is covered by Article 8 of the New York Labor Law, it’s subject to the registration requirement. That said, the NYSDOL has been clear that the law is designed to target projects with significant public involvement or impact. Smaller, purely private projects might not fall under the regulation, but it’s always best to check with the NYSDOL to be sure.
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### **The Registration Process and Key Requirements**
**SE:** Let’s talk about the registration process. what steps do contractors and subcontractors need to take,and what kind of facts is required?
**JT:** The process is fairly straightforward but requires attention to detail. Contractors and subcontractors must submit an submission through the NYSDOL Contractor Registry portal. The application asks for key information, including company details, unemployment insurance registration, past workplace safety or tax violations, and proof of workers’ compensation insurance. All of this must be submitted electronically, and fees must be paid via credit card.
**SE:** What happens after the application is submitted? How long does the approval process take?
**JT:** Onc the application is submitted, the NYSDOL will review it. The state estimates that the approval process could take three to four weeks, though incomplete or inaccurate applications might cause delays. If approved, a Certificate of Registration will be issued electronically, and contractors must download and print this certificate to validate their registration.
**SE:** What if an application is denied? Are there options for appeal?
**JT:** Yes, if an application is denied, registrants have 30 days to address the issue or request a hearing. It’s critically important to carefully review the reasons for denial and provide any additional documentation required. This step is critical to avoid disruptions in bidding or project timelines.
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### **Maintaining Compliance and Avoiding Delays**
**SE:** Compliance seems to be a big focus of this law. What advice would you give to contractors and subcontractors to ensure they stay compliant?
**JT:** First and foremost, register as early as possible. The NYSDOL is urging everyone to start the process now to avoid last-minute issues. Make sure all required documentation is in order, including proof of workers’ compensation insurance and any other relevant certifications. Additionally, contractors should renew their registrations at least 90 days before the current certificate expires to maintain compliance.
**SE:** How can contractors stay informed about changes or updates to the law?
**JT:** The NYSDOL website is a great resource. They’ve created a frequently asked questions section specifically for this law, which is updated regularly. Contractors should also monitor the registry portal for any announcements or changes to the registration process. Staying proactive and informed is key to avoiding compliance issues.
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### **The Broader Impact on New York’s Construction Industry**
**SE:** This law represents a significant shift for New York’s construction industry. What do you think will be the long-term impact?
**JT:** I think it’s a positive step forward. By enhancing accountability and clarity, the law will help create a more level playing field for contractors and subcontractors. It will also protect workers by ensuring that all parties involved comply with labor laws and safety standards. Over time, I expect this law to reduce delays and streamline project management, which will benefit everyone involved in construction projects across the state.
**SE:** Do you have any final thoughts for contractors and subcontractors as they prepare for this change?
**JT:** My advice is simple: stay informed,be proactive,and start the registration process early. this law is about ensuring accountability and protecting workers, but it also presents an opportunity for contractors to demonstrate their commitment to compliance and professionalism. By taking these steps, contractors can position themselves for success in New York’s evolving construction landscape.
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### **Conclusion**
**SE:** John, thank you for sharing your expertise on this important topic. Your insights will be invaluable to contractors and subcontractors as they navigate this new law.
**JT:** My pleasure. It’s crucial that everyone in the industry understands these changes and takes the necessary steps to comply. By working together, we can ensure a safer, more accountable construction industry in New york.
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This interview provides a comprehensive overview of the new contractor registration law, offering practical advice and insights to help contractors and subcontractors stay compliant and thrive in New York’s construction industry.
