On Labor Day, New York State Governor Kathy Hochul signed Senate Bill S6350/ Assembly Bill A7434.
This legislation provides for Building Service Employees working for cooperative corporations and condominium associations to be paid the Prevailing Wage for Building Service Employees for the community in which the building is located (the “Prevailing Wage”). A “Building Service Employee” is defined in the legislation to include, but is not limited to, watchman, guard, doorman, building cleaner, porter, handyman, janitor, gardener, groundskeeper, elevator operator, and starter, and window cleaner, but does not include persons regularly scheduled to work fewer than eight hours per week in the building. This law will go into effect on January 1, 2022.
The legislation, which will become part of the Real Property Tax Law, provides that no cooperative or condominium can qualify for the Co-Op and Condo Tax Abatement (the “Abatement”) unless the Co-Op or Condo pays its Building Service Employees, the Prevailing Wage for the community in which the building is located. In New York City, the Prevailing Wage for Building Service Employees is the salary and benefits received by members of Local 32BJ.
The legislation targets Co-ops/Condos with units that have higher valuations for New York City tax purposes. The exception to the Bill are properties with an average unit assessed value of $60,000 or less or properties with an average unit assessed value of $60,000- $100,000 and contain less than 30 apartments or units. Therefore, this exception will include a large swath of Coop/Condo housing, especially those in the middle-class and working-class communities.
The legislation requires that affidavits certifying the payment of prevailing wages to building service workers' public records be produced before a court or administrative tribunal if requested. The New York State Department of Labor has the power to conduct an investigation and hearing and file a final determination to enforce the law and make sure employees are properly paid.
We are still waiting for any additional rules regarding this legislation to be promulgated. We will monitor any developments in this legislation and advise our clients accordingly.
