Enforcement of New York’s recent amendment to Labor Law § 220 extending prevailing wage requirements to certain off-site custom fabrication has been enjoined. The New York State Department of Labor and other defendants consented to preliminary injunctive relief in pending federal litigation, meaning the amendment will not take effect as scheduled on June 18, 2026, unless and until the court lifts or modifies the injunction.
Current Status: Enforcement Paused
The consented-to preliminary injunction is now the central development for contractors, subcontractors, public owners and fabricators. Although the amendment to Labor Law § 220 would significantly expand prevailing wage exposure beyond the jobsite, enforcement is currently suspended while the litigation proceeds, and the future of the law remains uncertain.
Project participants should therefore avoid treating the amendment as an immediately effective compliance obligation, while still monitoring the litigation and evaluating whether their existing contracts, bids and supply-chain practices could be affected if the injunction is lifted or the law is otherwise allowed to take effect.
What the Amendment Would Cover if Allowed to Take Effect
If the injunction is lifted, the amendment would apply to project-specific fabrication performed off-site — including outside New York State — where the work is uniquely designed and engineered for a particular public works project. For covered work, prevailing wages would be tied to the county where the project is located, rather than the location of the fabrication facility.
What Constitutes “Custom Fabrication”
The amendment applies to fabrication that is solely and specifically designed for a particular public works project. It defines “custom fabrication” by listing the categories of work that qualify as covered work.
Earlier versions of the amendment defined “custom fabrication” through the same list but stated that the definition included those categories “but [is] not limited to” them. The removal of that phrase in the latest version of the amendment suggests that the statutory list is meant to define the full scope of the term, rather than merely offer examples.
Custom fabrication therefore includes:
- Wall panel systems fabricated to project specifications
- Custom millwork, including cabinetry, counters and casework
- Electrical, mechanical and plumbing components specially fabricated for the project
- HVAC and ductwork systems designed for the particular project
- Rebar assemblies produced for project use
- Mechanical insulation cut or fabricated for the project
By contrast, the amendment explicitly excludes:
- Off-the-shelf materials that are stocked and readily available
- Standard manufacturing or assembly of non-project-specific products
- Routine supply of inventory items, even if incorporated into public works
- Federally funded work where federal prevailing wage law governs
Practical Implications
- Contractors and subcontractors should review bids, contracts and compliance systems to address potential off-site prevailing wage obligations.
- Fabricators and suppliers should assess whether their work qualifies as custom fabrication and prepare for increased documentation and payroll scrutiny.
- Public owners and agencies may want to update procurement documents and clarify compliance expectations earlier in the process.
Practical Considerations While Litigation Proceeds
Because enforcement is currently enjoined, covered entities are not required to comply with the amendment at this time. However, the preliminary injunction does not necessarily resolve the merits of the litigation or permanently invalidate the amendment. Project participants should continue monitoring the case and consider whether contract language, bid assumptions, payroll systems and fabrication records would need to be updated if the injunction is lifted.
Key Takeaway
The expansion of prevailing wage obligations to off-site custom fabrication would add significant complexity to New York public works compliance. For now, however, enforcement has been paused by a consented-to preliminary injunction, and the future of the amendment remains uncertain. Contractors, subcontractors, owners and fabricators should continue monitoring the litigation and be prepared to adjust compliance plans if the injunction is lifted or the law is otherwise allowed to take effect.
Harris Beach Murtha’s Labor and Employment Practice Group will continue monitoring this issue and report new developments. If you have questions or need assistance with this or other labor matters, please reach out to attorney Daniel J. Palermo at (585) 419-8946 and dpalermo@harrisbeachmurtha.com; attorney Joshua D. Steele at (585) 419-8846 and jsteele@harrisbeachmurtha.com; or the Harris Beach Murtha attorney with whom you most frequently work.
This alert is not a substitute for advice of counsel on specific legal issues.
Harris Beach Murtha’s lawyers and consultants practice from offices throughout Connecticut in Bantam, Hartford, New Haven and Stamford; New York State in Albany, Binghamton, Buffalo, Ithaca, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse, Long Island and White Plains; as well as in Boston, Massachusetts, and Newark, New Jersey.