Construction employers in New York have a new wage and hour rule to put on their radar.
On September 9, 2026, Governor Kathy Hochul signed New York's Construction Reporting Pay Act , now Chapter 291 of the Laws of 2026.
The new law creates reporting pay and last minute shift cancellation requirements for the construction industry. In practical terms, construction employers may owe employees wages even when little or no work is ultimately performed.
- A covered worker who reports for work may be entitled to up to four hours of pay.
- On covered prevailing-wage projects, reporting pay is generally tied to the applicable prevailing wage rate, including supplements.
- Canceling a scheduled shift with less than 12 hours' notice can trigger two hours of pay.
- Amounts due under the general construction reporting-pay provision are expressly treated as wages.
- The law takes effect December 8, 2026.
What Does the New York Construction Reporting Pay Act Require?
The Act adds two new provisions to the New York Labor Law: Labor Law § 224-g, addressing reporting and scheduling pay on certain prevailing-wage construction projects, and Labor Law § 196-e, addressing construction employees more broadly.
1. Reporting for Work Can Trigger Up to Four Hours of Pay
For construction employees covered by Labor Law § 196-e, an employee who reports for work at the employer's request or permission must generally be paid for at least four hours, or the employee's regularly scheduled shift, whichever is less, at the employee's promised hourly wage.
That means an employer may have a wage obligation even when a worker arrives at the job site and is then told that there is no work available.
2. Prevailing Wage Projects Have Their Own Reporting-Pay Rule
The Act separately addresses construction projects covered by specified New York prevailing wage laws.
On those projects, a covered laborer, worker, or mechanic who reports for work at the employer's request or permission generally must receive at least four hours at the applicable prevailing rate of wages, including supplements, for the employee's regularly scheduled classification of work.
Employers working on public work and other projects subject to New York prevailing wage requirements should therefore pay particular attention to which wage schedule and classification applies.
3. Less Than 12 Hours' Notice of a Cancellation Can Trigger Two Hours of Pay
The law also addresses last-minute schedule changes.
If a covered construction employee is scheduled to report for work and the employer cancels the shift with less than 12 hours' notice, the employee generally must receive two hours of pay.
For workers covered by Labor Law § 196-e, that payment is based on the employee's promised hourly wage. For covered prevailing-wage work, the statute provides for payment at the applicable prevailing rate, including supplements.
Why Should New York Contractors and Construction Employers Care?
Because a routine scheduling decision can now become a wage and hour issue.
Sending a crew home after workers arrive at the site, or canceling tomorrow morning's shift late the night before, may create a wage obligation even though the employee performs little or no productive work.
And the potential exposure may extend beyond the amount of reporting pay itself.
A relatively small payroll issue can become much more expensive if it develops into a wage and hour lawsuit.
New York wage claims can potentially involve recovery of unpaid wages, liquidated damages, interest, and attorneys' fees, depending on the claim and circumstances. Under New York Labor Law § 198, a prevailing employee pursuing an underpayment-of-wages claim may generally recover an additional amount equal to 100% of the underpayment as liquidated damages unless the employer establishes a good-faith basis for believing its payment practices complied with the law.
That is why employers should not view a two hour or four hour reporting pay obligation as merely a minor payroll adjustment.
Recordkeeping May Matter Just as Much as Payment
Construction employers should also consider how they will prove when an employee was scheduled, when a shift was canceled, when notice was sent, when an employee arrived, and what the employee was ultimately paid.
New York employers already have substantial payroll recordkeeping obligations. In wage litigation, incomplete or inaccurate records can make an employer's position significantly more difficult to prove.
A contractor defending a reporting pay claim should not have to reconstruct six months of scheduling decisions from text messages, superintendent recollections, and payroll notes.
What Should Construction Employers Do Before December 8, 2026?
Construction companies and contractors should use the period before the law takes effect to review the operational systems that control scheduling and payroll.
- Identify which projects are subject to New York prevailing-wage requirements.
- Review procedures for calling employees into work.
- Create a documented process for canceling scheduled shifts.
- Determine how the company will establish that at least 12 hours' notice was provided.
- Confirm payroll can separately identify and process required reporting pay.
- Review prevailing wage classifications and supplements where applicable.
- Train project managers, superintendents, dispatchers, payroll personnel, and anyone else authorized to schedule or cancel crews.
- Preserve scheduling, timekeeping, cancellation, and payroll records in a way that can later be retrieved if a claim arises.
A Simple Example
Assume a contractor schedules a crew for 7:00 a.m. tomorrow. At 8:00 p.m. tonight, the project manager learns that the work cannot proceed and texts the crew telling them not to report.
Because the cancellation occurred fewer than 12 hours before the scheduled shift, the new law may require payment even though the employees never arrive at the job site.
Alternatively, if the crew reports at 7:00 a.m. and is sent home shortly after arriving, the reporting-pay provisions may be implicated.
For employers, this makes who may schedule workers, who may cancel work, how cancellation notices are documented, and how payroll receives that information compliance issues rather than merely job-site management decisions.
Frequently Asked Questions About New York Construction Reporting Pay
When does the New York Construction Reporting Pay Act take effect?
The law takes effect on December 8, 2026, 90 days after it was signed into law on September 9, 2026.
Does a New York construction worker have to be paid four hours if sent home?
Under the new law, a covered construction employee who reports for work at the employer's request or permission generally must receive at least four hours of pay, or the employee's regularly scheduled shift if shorter. Different requirements apply to covered prevailing-wage work.
What happens if a construction shift is canceled with less than 12 hours' notice?
A covered employee generally must receive two hours of pay when a scheduled construction shift is canceled with less than 12 hours' notice. The applicable rate depends on whether the work falls under the statute's general construction provisions or its prevailing wage provisions.
Does the law apply to prevailing-wage construction projects?
Yes. The Act includes a separate provision, Labor Law § 224-g, addressing reporting and scheduling pay on specified projects covered by New York's prevailing-wage laws.
Can an employer face a lawsuit for failing to pay required reporting pay?
The new general construction provision expressly states that payments owed under Labor Law § 196-e are wages. Employers should therefore treat compliance as part of their broader New York wage and hour obligations and evaluate potential remedies under the Labor Law based on the particular claim.
Is Your Construction Company's Scheduling System Ready?
The Construction Reporting Pay Act turns everyday scheduling decisions into potential wage-and-hour compliance issues.
Before December 8, 2026, New York contractors and construction employers should review how workers are scheduled, how cancellations are communicated and documented, how employees who report but do not work a full shift are paid, and whether payroll systems can accurately capture these new obligations.
Lieb at Law, P.C. represents businesses in New York employment disputes, wage and hour matters, construction disputes, and commercial litigation. Construction employers with questions about the new reporting pay requirements should consider reviewing their policies and procedures before the December 8, 2026 effective date.
Contact Lieb at LawRead the law: New York Assembly Bill A6950 / Senate Bill S9843, Construction Reporting Pay Act .
This article is for informational purposes only and does not constitute legal advice. Application of New York wage-and-hour and prevailing-wage laws depends on the particular facts, workers, projects, agreements, and other applicable legal requirements.