The New York City Council recently passed Local Law 212 of 2019. The law expands the Prevailing Wage Law requirements for building service employees to certain affordable housing residential projects receiving City financial assistance. See Section 6-130 of the New York City Administrative Code (Prevailing Wage for Building Service Employees in City Leased or Financially Assisted Facilities).
Building Service Employee includes any person, the majority of whose employment consists of performing building service work including but not limited to a watchperson, guard, doorperson, building cleaner, porter, handyperson, janitor, gardener, groundskeeper, stationary fireman, elevator operator and starter, or window cleaner.
Beginning in April 2, 2020, developers or owners of new construction or preservation residential projects with 120 or more residential units in one or more buildings receiving discretionary City financial assistance of $1 million or more will be required to pay all building service employees no less than the prevailing wage.
The Prevailing Wage Schedule is issued annually for building service employees by the New York City Comptroller’s Office.
Beginning in April 2, 2020, developers or owners of preservation projects receiving discretionary City financial assistance of $1 million or more will be required to pay all building service employees no less than the protected wage.
A preservation project for the purposes of the protected wage requirement is defined as:
The protected wage means the rate of wages and cost of benefits paid to a building service employee in a preservation project on the date that the financial assistance for such a project is received plus an annual increase to account for any change in the cost of living and in the cost of providing benefits. The protected wage annual increase will be determined by City agency rulemaking.
The requirements of this law do not apply to converted public housing building service workers and supportive housing projects as defined by the law.
This law is applicable in City initiated rezoning areas that meet the criteria set forth in the law. In addition, it remains the City’s policy to require that, in City initiated rezoning areas, prevailing wage must be paid to all building service employees in new or existing buildings with at least 30 units of residential housing that receive discretionary City financial assistance of $1 million or more with certain exemptions for preservation projects.