Effective December 30, 2024, New York has implemented a new registration requirement for contractors and subcontractors working on “covered projects.” This update impacts both public and certain privately-owned projects as contractors and subcontractors must now register with the State before they can perform work on these projects. If your business operates in construction, demolition, or similar fields in New York, it is essential to understand these new requirements to avoid potential penalties and ensure compliance with the law.
Who Needs to Register?
- Contractors: Any entity entering into a contract to perform construction, demolition, repair, or other types of work covered by the law. This includes work on public projects as well as certain private projects.
- Subcontractors: Any entity hired by a contractor to perform such work.
What is a Covered Project?
These include public works and certain private projects subject to New York’s prevailing wage laws (sections 224-a and 224-d).
What Information is Required for Registration?
The registration process is straightforward but requires several key pieces of information, including:
- Business Details: The name, business address, contact information, and type of entity (i.e. person, partnership, associate, etc.) for the contractor or subcontractor.
- Ownership Information: Names and addresses of all individuals with an ownership interest in the company, along with their percentage of ownership. Publicly-traded companies will need to submit the names of officers instead.
- Tax and Insurance Details: The contractor’s tax identification number, workers’ compensation number, and unemployment insurance registration.
- Compliance History: Information about any past violations related to wage assessments, labor laws, workers’ compensation coverage, safety standards, and apprenticeship programs. Contractors and subcontractors must disclose whether they have been debarred under state or federal laws in the past eight years.
- Minority or Women-Owned Business Status: Contractors or subcontractors who qualify as minority or women-owned businesses must also disclose this status.
- Insurance Information: In addition to submitting this information, if requested, contractors and subcontractors must provide proof of workers’ compensation coverage for all workers, and this information will be accessible to the public, excluding any personally identifiable information.
Registration Fees and Process
- A non-refundable registration fee of $200 is required at the time of registration.
- Minority and women-owned businesses may qualify for a reduced fee of $100.
- After the submission of the registration, the contractor and/or subcontractor will be reviewed to determine whether they are “fit” to be registered.
- If deemed “fit,” the applicant will be given a certificate of registration which is valid for two years, with the option for renewal. The registration must be renewed at least 90 days before it expires.
What Happens If You Don’t Register?
- Bidding and Work Restrictions: Contractors and subcontractors must be registered before they can bid on public works projects or commence work on covered projects. Failure to do so may result in penalties.
- Civil Penalties: Contractors or subcontractors who begin work without being registered can be fined up to $1,000 after a hearing.
- Penalties for Non-Compliance: If a contractor or subcontractor works on a covered project without the required registration, or knowingly hires an unregistered subcontractor, they can face civil penalties. In cases of non-compliance, the Commissioner of Labor may revoke or suspend a contractor’s registration.
Key Takeaways for Contractors and Subcontractors
- Pre-Work Registration: Registration must be completed prior to starting any work on a covered project. Contractors must submit their registration certificate when bidding on contracts.
- Registration is Public: The State will maintain an online system to display registration and disclosure information, except for personal and confidential business details.
- Registration is Completed Online: Applications are submitted through the Contractor Registry portal which can be found here. There is no paper application.
- Penalties for Non-Compliance: There are financial penalties for failing to comply with these registration requirements, so it is crucial to get registered before bidding or commencing work on any covered project.
- Renewal Requirements: Make sure to renew your registration on time to avoid lapsing while performing contracted work.
If you are a contractor or subcontractor working in New York, make sure you are fully compliant with this new registration requirement to avoid penalties and ensure the smooth continuation of your projects. For questions regarding the registration process or to ensure that you are meeting all requirements, please feel free to reach out to any of the authors of this Alert.
