NYS Prevailing Wage Updates 2026: Key Changes for Contractors

New York prevailing wage compliance in 2026 represents the most significant coverage expansion in years. Three major changes took effect January 1, 2026, with a fourth arriving June 16, 2026. If your HR team is struggling with these requirements, you’re not alone—contractors across the state report the same challenges with electronic filing, expanded coverage, and documentation requirements.

The Four Major Changes for 2026

1. Electronic Certified Payroll Filing (Live January 1, 2026)

All contractors and subcontractors must now submit certified payroll records electronically through the NYS Department of Labor portal at https://pws.labor.ny.gov. Paper filing is no longer accepted.

2. Prevailing Wage Trucking Expansion (Live January 1, 2026)

Truckers hauling concrete and asphalt to and from work sites in NYC, Nassau, Suffolk, Westchester, and Putnam Counties must receive prevailing wages—including for travel time, loading/unloading, and detention time.

3. Minimum Wage and Exempt Salary Threshold Increases (January 1, 2026)

NYC, Long Island, and Westchester's minimum wage rose to $17.00/hour; the remainder of the state increased to $16.00/hour. Exempt salary thresholds increased to $1,275/week ($66,300/year) for NYC/Long Island/Westchester and $1,199.10/week ($62,353/year) for the rest of the state.

4. Off-Site Custom Fabrication Coverage (Effective June 16, 2026)

Custom-fabricated materials destined for specific public works projects now trigger prevailing wage obligations, even if fabrication occurs outside New York. This applies to contracts awarded after June 16, 2026.

Electronic Certified Payroll: The Implementation Challenge

The mandatory electronic filing system creates the biggest administrative burden for contractors. Here’s what you need to know:

Portal Requirements:

• Register at https://pws.labor.ny.gov with NY.gov credentials
• Maintain active contractor registration with NYS DOL
• Submit payroll records weekly or per contract terms (typically Monday or Tuesday following the payroll period)
• Include complete worker information: name, address, classification, hours worked, wage rates (base + fringe itemized), gross pay, deductions, and fringe benefit destinations

What Must Be Included in Each Certified Payroll Record:

• Worker identification (SSN masked for privacy)
• Classification per the applicable wage determination
• Daily and weekly hours worked
• Hourly rate of pay broken down as base wage plus fringe benefits
• Gross pay and all deductions explained
• Fringe Benefit Statement showing itemized components (health/welfare, pension, vacation/holiday, training) and their destinations (union trust fund name/account, employer plan, direct payment, or accrual)
• Signed Statement of Compliance certifying that all prevailing wages and fringe benefits have been paid in full

Penalties for Non-Compliance:

• Payment holds on project contracts
• Project work stoppage
• Debarment from future public works projects
• Civil penalties and back wage liability

The Software Integration Problem

The biggest complaint from HR professionals: most construction payroll systems don’t integrate seamlessly with the NYS DOL portal.

Common Pain Points:

• Manual data entry for each weekly submission across multiple projects
• Sage/Timberline and similar platforms lack clear import/export tools for the NYS portal
• The DOL accepts XML file uploads, but creating properly formatted files requires technical knowledge
• No automated reconciliation between internal payroll systems and portal submissions
• Time-consuming duplicate data entry increases error risk

The Portal Workflow:

1. Friday: Collect timesheets from foremen
2. Monday: Process payroll with prevailing wage rates
3. Tuesday: Internal compliance review
4. Wednesday: Prevailing wage officer approval
5. Thursday: Export to XML and upload to NYS DOL portal
6. Friday: Confirm successful submission and archive documentation

This weekly cycle must repeat for every active project, creating significant administrative overhead.

Off-Site Custom Fabrication: The Scope Expansion

Starting June 16, 2026, prevailing wage extends beyond the construction site to fabrication shops, creating custom materials for public works projects.

What Qualifies as Custom Fabrication:

Materials that are specifically designed or customized for a particular public works project cannot be used on other projects without substantial modification. Examples include:

• Wall panels sized for a specific building
• Custom HVAC ductwork engineered for a particular facility
• Mechanical insulation blankets cut to project specifications
• Specialized casework built for a specific installation
• Bridge components fabricated to engineering drawings
• Precast concrete elements designed for one structure

What Does NOT Qualify (Pending Legislative Clarification):

Pending bills S8833 and A9464 may carve out:

• Semi-standard components with minimal customization (standard lumber cut to length, standard pipe bent per drawing)
• Materials sourced but not fabricated (purchasing ready-made assemblies)
• Transportation-only services (covered under separate trucking rules)

Monitor https://nysenate.gov and https://nyassembly.gov for updates on these clarifications.

Contractor Obligations for Fabrication Work:

1. Identify and Document: Determine if fabrication qualifies as “custom” before awarding contracts. Document the determination in writing.
2. Vendor Registration: Require off-site fabricators to register as public works contractors with NYS DOL, even if located outside New York. Obtain proof of registration before work begins.
3. Contract Language: Include prevailing wage clauses in all fabrication subcontracts and purchase orders.
4. Payroll Tracking: Fabricators must file certified payroll records for fabrication workers. Prime contractors must verify timely filing.
5. Public Disclosure: Report planned off-site fabrication work to the fiscal officer managing the public works project. Details posted publicly include the fabrication vendor name and location, the work description, and the estimated cost.
6. Multi-State Complexity: If fabrication occurs outside New York but the materials are used on a New York public works project, New York prevailing wage rates apply. This creates supply-chain pricing challenges.

Cost Impact:

Budget for a 15-30% premium on fabrication labor costs due to prevailing wage requirements. Revise bid templates to identify custom fabrication line items separately and establish vendor qualification criteria that include prevailing wage compliance capability.

Prevailing Wage Trucking: Geographic Expansion

The trucking expansion affects concrete and asphalt haulers in five counties: NYC, Nassau, Suffolk, Westchester, and Putnam.

Covered Time Includes:

• Travel time to and from the work site
• Loading time at origin
• Unloading time at the destination
• Detention time waiting at the job site

This is not just “wheels turning” time—it’s all time related to the haul.

Contractor Requirements:

• Identify projects in covered counties requiring concrete/asphalt transport
• Include prevailing wage language in trucking subcontracts
• Require trucking vendors to confirm compliance capability
• Verify certified payroll filing for trucking hours
• Budget for a 20-40% cost premium for hauling in covered counties

Fringe Benefits: The Documentation Burden

Fringe benefits remain one of the most confusing compliance areas, particularly with expanded coverage to fabrication and trucking vendors.

What Counts as Fringe Benefits:

• Health and welfare contributions
• Pension/annuity contributions
• Vacation accruals
• Holiday accruals
• Sick leave accruals
• Training and apprenticeship fund contributions
• Tools and apparel allowances (if specified in wage determination)

Critical Documentation Requirements:

1. Wage Determination Copies: Current rates for each trade/county/project, with posting proof from work sites
2. Fringe Benefit Allocation Spreadsheet: Worker name, classification, hours worked, fringe rate per hour (itemized), destination of each component, fund account numbers, monthly and year-to-date totals
3. Union Trust Fund Statements: Quarterly or annual statements confirming deposits, matched month-by-month to certified payroll claims
4. Employer Account Proof: 401(k) contribution confirmations, bank records showing deposits to benefit accounts, insurance carrier receipts, and benefit statements to workers
5. Apprenticeship Documentation: Enrollment records, training hours logged separately, proof of payment per apprenticeship level

Common Audit Triggers:

• Fringe benefit underpayment (base wage correct, but fringe short)
• No proof of fringe fund deposit (CPR claims $10/hour to the union fund, but no statement confirms the deposit)
• Fringe allocation mismatch (CPR shows $20/hour but only $15 documented)
• Workers are unable to explain where fringe benefits go during field interviews
• Wage determinations not posted or not current at job sites

Critical 2026 Compliance Dates

2026 Compliance Checklist

January–March 2026: Setup Phase

1. Complete NYS DOL contractor registration

2. Audit all projects for prevailing wage applicability

3. Pull current wage determinations for all trades/counties

4. Confirm wage determination posting at all active job sites

5. Test payroll software integration with NYS DOL portal

6. Practice XML export and upload process

7. Brief project managers and foremen on new coverage rules

February–April 2026: Fabrication Preparation

1. Review all projects to identify custom fabrication needs

2. Identify off-site fabrication vendors and subcontractors

3. Require vendors to register as public works contractors

4. Draft prevailing wage language for fabrication contracts

5. Update RFP and bid documents

6. Calculate prevailing wage cost premiums (budget 15-30%)

7. Plan fiscal officer notification workflow

February–April 2026: Trucking Preparation

1. Identify projects in covered counties requiring concrete/asphalt trucking

2. Source prevailing wage trucking vendors

3. Confirm vendor registration/compliance capability

4. Update trucking subcontracts with prevailing wage language

5. Brief the procurement team on cost premiums (budget 20-40%)

May–June 2026: June 16 Cutoff Preparation

1. Ensure all new contracts awarded after June 16 include fabrication coverage

2. Begin electronic CPR filing for fabrication/trucking vendors

3. Verify the fiscal officer notification for fabrication work

4. Reconcile fabrication/trucking payrolls to union fund deposits

5. Conduct worker briefings on prevailing wage and fringe benefits

Year-Round: Operational Requirements

1. Submit weekly CPRs electronically via the portal

2. Reconcile monthly fringe benefit claims to union fund statements

3. Post updated wage determinations at all job sites

4. Maintain audit documentation (CPRs, fringe statements, fund confirmations)

5. Respond to NYS DOL audit requests within required timeframes

October–December 2026: Year-End Closeout

1. Reconcile all 2026 fabrication/trucking payrolls to fund deposits

2. Conduct an internal payroll audit

3. Verify all CPRs filed correctly and on time

4. Close out prevailing wage projects

5. Archive all compliance documentation (retain for 6+ years)

6. Evaluate 2026 compliance experience and refine 2027 procedures

Red Flags That Trigger NYS DOL Audits

Understanding what catches an auditor's attention helps you avoid enforcement actions:

• Late or missing electronic CPRs: Triggers immediate follow-up and payment holds
• Fringe benefit underpayment: Base wage is correct, but fringe short still counts as a violation
• Off-site fabrication not reported: Failure to include fabricators in CPRs after June 16
• Trucking prevailing wage skipped: Concrete/asphalt hauls in covered counties without prevailing wage
• No union fund statement match: CPR claims funds paid, but no deposit confirmation
• Wage determinations not posted: State requirement; auditors note immediately
• Worker misclassification: A carpenter doing carpentry work but is paid as a laborer
• Workers can’t explain fringe benefits: Field investigators ask workers where fringe goes; “I don’t know” escalates the audit
• Handwritten or informal records: Looks unprofessional and invites deeper scrutiny
• No apprenticeship documentation: Apprentices on the job without enrollment or training hours

Tools and Systems for Compliance

Essential Software Capabilities:

Your payroll platform should include:

• New York-specific prevailing wage CPR templates
• NYS DOL wage determination library with automatic updates
• Electronic export to the NYS DOL portal with encryption
• Fringe benefit tracking by fund destination
• Off-site fabrication and trucking worker flags
• Audit trail and digital signatures
• Automated reconciliation of fringe claims to fund deposits

Team Structure:

Designate a Prevailing Wage Compliance Officer responsible for:

• Wage determination updates and posting
• CPR electronic portal management
• Fringe benefit reconciliation
• Off-site fabrication vendor tracking
• Trucking vendor compliance
• Audit coordination and DOL communication
• Worker briefings and interview preparation

Proactive Documentation:

Maintain these records for every project:

• Project-specific wage determinations with effective dates
• CPR filing dates and portal confirmation screenshots
• Union fund reconciliation spreadsheets (monthly)
• Off-site fabrication vendor registry (name, location, registration status, work description, contract award date, CPR filing status)
• Trucking vendor list for covered counties (vendor name, materials hauled, estimated hours, CPR tracking)
• Worker briefing templates explaining fringe benefits

Questions to Ask Your Payroll Provider

Before you proceed with 2026 compliance, confirm your payroll provider can answer these questions:

1. Does your software integrate with the NYS DOL electronic portal and export CPR files in the required XML format?
2. How do you annualize fringe benefits and track fund destinations?
3. Does your system flag off-site fabrication workers separately for CPR purposes?
4. How do you handle trucking payroll with travel, loading, unloading, and detention hours?
5. What is your process for monthly reconciling fringe benefit CPR claims with union trust fund statements?
6. How do you ensure off-site fabrication vendors are registered and filing CPRs?
7. Who reports off-site fabrication work to the fiscal officer, and how is this documented?
8. What documentation should we maintain to survive a NYS DOL audit?
9. What is the troubleshooting plan if the portal upload fails?
10. How do you track apprentice fringe benefits per wage determination?

If your provider can’t answer these questions clearly, you have a compliance gap.

Getting Expert Help

The administrative burden of New York's prevailing wage compliance has increased substantially in 2026. Many contractors find that internal payroll departments lack the specialized knowledge needed to navigate electronic filing, fringe benefit documentation, off-site fabrication tracking, and multi-state fabrication vendor coordination.

Book a demo with Lumber’s payroll experts to see how we can automate your NYS prevailing wage compliance and eliminate manual data entry.

Key Resources

Official NYS Department of Labor:

• Main prevailing wage page: https://dol.ny.gov/prevailing-wage
• Certified payroll portal: https://pws.labor.ny.gov
• Current wage schedules by county: https://dol.ny.gov/prevailing-wage/public-works
• Certified Payroll Contractor User Guide: https://dol.ny.gov/system/files/documents/2025/12/certified-payroll-contractor-user-guide-12-19-2025.pdf

Legislative Tracking:

• NY Senate bill status: https://nysenate.gov
• NY Assembly bill status: https://nyassembly.gov
• Monitor S8833 and A9464 for custom fabrication clarifications

NYC-Specific Resources:

• NYC Comptroller wage schedules: https://comptroller.nyc.gov/services/for-the-public/workers-rights/wage-schedules/

Federal Reference:

• Davis-Bacon wage determinations (for federal projects): https://sam.gov/wage-determinations