New York’s New Prevailing Wage Law Hinders Construction, Developers Say

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New York’s New Prevailing Wage Law Hinders Construction, Developers Say
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Business groups said paying higher wages to construction workers on a broader range of government-backed projects will hurt firms as they attempt to recover from the coronavirus crisis

ALBANY, N.Y.—Business groups said a newly approved state mandate to pay higher wages on a broader range of government-backed construction projects will hurt firms as they attempt to recover from the novel coronavirus.

The requirement was included in the $170-plus billion budget enacted last week by state lawmakers. It caps a yearslong effort by building trade unions to expand the definition of public projects that require a higher prevailing-wage rate, which the state calculates based on collective-bargaining agreements.

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