KEY TAKEAWAYS:

• Governor Hochul signed the Construction Reporting Pay Act (S.9843) on September 9, 2026, creating new reporting pay and shift cancellation pay obligations for all New York construction employers  – union and non-union alike –  effective December 8, 2026.

• Under new Labor Law § 224-g, workers on prevailing-wage projects who report for duty must be paid at least four hours at the prevailing rate (including supplements); canceled shifts require two hours’ pay at that rate if less than 12 hours’ notice is provided.

• Under new Labor Law § 196-e, employees on non-prevailing-wage projects who report for work must be paid at least four hours (or the scheduled shift, if shorter) at the promised wage; canceled shifts trigger two hours’ pay at the promised wage.

• Cancellation pay under § 196-e is classified as “wages,” meaning the full enforcement and penalty framework for unpaid wages  –  including liquidated damages and Department of Labor actions  –  applies.

• Employers should update scheduling, timekeeping, and payroll practices now and monitor forthcoming Department of Labor rulemaking for additional compliance guidance.

On September 9, 2026, Governor Hochul signed the Construction Reporting Pay Act (S.9843/A.6950) into law as Chapter 291 of the Laws of 2026. The Act, which takes effect on December 8, 2026, was part of a broader package of worker-protection legislation signed at the Governor’s annual Labor Appreciation Reception – a package that also included measures strengthening apprenticeship requirements for contractors in the renewable energy sector. The new law adds two sections to the New York Labor Law: § 224-g, covering prevailing-wage construction projects, and § 196-e, covering non-prevailing-wage (private-sector) construction employees. Together, they create a uniform set of reporting pay and shift cancellation pay requirements that apply across the New York construction industry.

What the Act Requires

The Act creates two parallel compensation obligations. The first is reporting pay: when a construction employee shows up to work at the employer’s request or permission, the employer must pay the employee for a minimum number of hours regardless of whether the employee actually performs a full shift. The second is shift cancellation pay: when a scheduled shift is canceled with less than 12 hours’ notice, the employer owes the employee a specified amount of compensation even though no work is performed.

For prevailing-wage projects governed by Labor Law § 220, new § 224-g requires that each laborer, worker, or mechanic who reports for work must be paid at least four hours at the prevailing rate of wages, including supplements, for the worker’s regularly scheduled classification of work. If a scheduled shift is canceled with less than 12 hours’ notice, the worker must receive two hours’ pay at the prevailing rate, including supplements. Amounts paid under this section are deemed “prevailing rate of wages or supplements” as defined in Article 8 of the Labor Law. One important carve-out: these requirements do not apply if the posted prevailing-wage schedule already provides reporting-pay wages or benefits that are more generous than what the Act requires.

For non-prevailing-wage construction employees, new § 196-e establishes a parallel framework. An employee who reports to work must be paid for at least four hours –  or the number of hours in the regularly scheduled shift, if fewer than four –  at employee’s promised hourly wage. If a shift is canceled with less than 12 hours’ notice, the employee must receive two hours’ pay at the promised hourly wage.

The enforcement implications of § 196-e deserve particular attention. Payments owed under this section are classified as “wages” under the Labor Law. That means the same penalties, remedies, and enforcement mechanisms that apply to unpaid wages generally – including potential liquidated damages, attorneys’ fees, and Department of Labor enforcement actions  –  will apply to claims for reporting pay and cancellation pay. For employers, this elevates what might otherwise seem like a scheduling-administration issue into a wage-and-hour compliance obligation with real financial exposure.

Who Is Covered

The Act’s coverage is broad. It applies to employees engaged in construction, reconstruction, alteration, maintenance, repair, renovation, demolition, excavation, and other development or improvement of land. That expansive definition captures the full spectrum of construction activity in New York. And the Act draws no distinction between union and non-union employers or between public and private projects  –  both are covered. Whether a contractor is building a state highway under a prevailing-wage determination or renovating a private office building, the new reporting pay and cancellation pay obligations apply.

What Businesses Should Do Now

Use the Next Three Months Wisely

Construction employers should use the roughly three-month window before December 8 to get their operations in order. The first priority is scheduling and dispatch. Employers need a reliable system for documenting when shifts are assigned, when cancellations are communicated, and whether the 12-hour notice threshold was met. Timestamps matter  – a supervisor’s recollection of “I think I called him the night before” will not be sufficient if a cancellation pay dispute arises.

Develop a Cancellation Policy

Beyond scheduling, employers should establish a written cancellation-notice policy and train supervisors, dispatchers, and field managers on the new requirements. Everyone in the chain of command who makes or communicates scheduling decisions needs to understand that canceling a shift within 12 hours of its start triggers a pay obligation–  even if the worker never leaves home.

Prepare Payroll Records

Payroll systems will also need attention. Reporting pay and cancellation pay should be calculated and recorded as separate line items, distinct from regular hours worked. This is especially important for prevailing-wage projects, where the payments are deemed “prevailing rate of wages or supplements” and will need to be reflected accurately in certified payroll records.

Evaluate Timekeeping Practices

Timekeeping practices should be reviewed as well. Employers need to capture not just total hours worked, but specifically when employees report to the worksite and when they are released. This granular data will be the foundation for demonstrating compliance.

Tighten Up Record-Keeping

Perhaps most importantly, employers should recognize that cancellation pay under § 196-e carries the same legal weight as regular wages. The same enforcement and penalty framework that applies to an unpaid-wage claim applies here. Robust record-keeping is not just good practice  –  it is the employer’s primary defense against potential claims and Department of Labor enforcement actions.

Watch for Additional Rules

Finally, employers should monitor rulemaking by the New York Department of Labor, which has been granted authority to adopt rules and regulations implementing the Act before the effective date. Additional compliance guidance may be forthcoming, and staying ahead of those developments will be essential.

If you have questions about how the Construction Reporting Pay Act may affect your business, please contact:

• Scott R. Green
• Or another member of the Employment and Labor team