No Escape Clause: NY’s Highest Court Rules Prevailing Wage Obligations Apply Whether Contracts Say So or Not

Short summary

New York's highest court ruled that prevailing wage obligations automatically apply to all covered public works contracts, regardless of written agreements—even express disclaimers cannot override the statutory requirement. Workers can pursue third-party beneficiary claims, and employers cannot use shortened contractual limitations periods to bar recovery. Contractors doing public works in NY must audit compliance and update contract language.

• •Prevailing wage obligations are automatically incorporated into NY public works contracts by operation of law
• •Employees can sue as third-party beneficiaries regardless of contract disclaimers or silence on the issue
• •Employers cannot enforce shortened contractual limitation periods to bar prevailing wage claims

Generated with AI, which can make mistakes.