New York construction employers will be required to pay employees both when they are asked to report to a job site but are not provided work, and when their shift is canceled with less than 12 hours of notice under a law taking effect December 8, 2026.
Legislators say the law will provide construction employees with greater scheduling predictability and reduce lost wages because of late cancellations. For employers, the new law may require additional planning and budgeting, as compensation obligations can arise even when work is delayed by factors such as weather, material deliveries, inspections or other circumstances outside the employer’s control.
The Construction Reporting Pay Act requires construction employees to be paid four hours of wages or the wages for the employee’s scheduled shift, whichever is less, when they report to a job site at the employer’s request and perform some work or no work is provided. Also, employees must receive two hours of wages when their shift is canceled with less than 12 hours of notice.
The law applies to all types of construction activity, union and non-union employees and public and private projects. The required hourly pay rate will be the prevailing wage for prevailing wage projects or the promised hourly wage on private, non-prevailing wage projects, provided no other agreement that provides wages exceeding those in the new law. This is a departure from current law on “reporting pay,” which only requires four hours of pay at minimum wage.
In a memorandum accompanying her signing the Construction Reporting Pay Act into law, Governor Hochul stated that “New York’s construction workers frequently carry the burden of unpredictable work schedules, including commuting to job sites, only to be sent home without their expected paycheck to support their families.”
Governor Hochul acknowledged the new law leaves several questions unanswered, particularly regarding how the reporting-pay and cancellation-pay requirements will interact with existing collective bargaining agreements that already address rates of pay and scheduling practices. She also suggested a different notice standard may be appropriate when shifts are canceled because of inclement weather or other unforeseen circumstances. In her approval memorandum, the Governor indicated she has reached an understanding with the Legislature to address these issues during an upcoming legislative session. In addition, the Act authorizes the New York Department of Labor to issue regulations implementing the law.
What Employers Should Do
Call-in pay is not unfamiliar in New York. It is covered under New York’s 2017 Minimum Wage Order for Miscellaneous Industries and Occupations, but that only required pay at the minimum wage. And New York City’s Fair Workweek Law applies to hourly, non-salaried workers in specific industries where unpredictable, last-minute scheduling is common, such as retail, restaurants and hospitality businesses. The Construction Reporting Pay Act, however, implements broader versions of these concepts into an industry where work schedules are frequently affected by weather, site conditions, inspections, project sequencing and other operational considerations.
In anticipation of the law’s December 8 effective date, construction employers should review and update scheduling, payroll, timekeeping and other practices to prepare for compliance with the law and understand how it will impact operations. In addition, construction employers should expect additional guidance, possibly before the Act takes effect, and should continue monitoring legislative and regulatory developments for further clarification regarding compliance obligations.
Harris Beach Murtha’s Labor and Employment Practice Group will closely monitor this law for updates. If you have questions or need assistance with the Construction Reporting Pay Act or other labor and employment matters, please reach out to attorney Daniel J. Palermo at (585) 419-8946 and dpalermo@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; Providence, Rhode Island; and Newark, New Jersey.