Prevailing Wage
New York’s prevailing wage law requires workers on certain construction projects to be paid wages and benefits set by the State, typically based on union collective bargaining agreements
rather than local market conditions. Historically, prevailing wage applied primarily to publicly owned and funded projects.
In recent years, the State expanded prevailing wage to privately owned projects receiving public assistance. Currently, private projects over $5 million are subject to prevailing wage if public funding accounts for at least 30% of total construction costs, with determinations made by the Public Subsidy Board. Proposed legislation would significantly expand this framework by lowering the threshold to 20% and eliminating the Public Subsidy Board entirely, making prevailing wage automatic for a much broader range of private projects.
LIBI’s Position
LIBI supports fair wages and a balanced approach that preserves housing and infrastructure feasibility. LIBI supports maintaining the current 30% threshold and preserving the Public Subsidy Board to allow for project-specific review rather than automatic application.
LIBI has warned that expanded prevailing wage requirements can increase construction costs by 30%–60%, rendering many residential, mixed-use, and infrastructure projects financially infeasible. In a region already facing a housing shortage and high land, material, and financing costs, these increases would slow production, reduce competition, and push investment out of Long Island and New York State.
LIBI opposes lowering the threshold and eliminating safeguards that ensure thoughtful, case-by-case determinations. When projects become infeasible, they do not get built—impacting workers, renters, homebuyers, and municipalities alike. Prevailing-wage bills in Albany threaten construction projects, jobs LI developers: 'This can't happen'