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What is NYC RCNY § 50-04?

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a. An Applicant found to have violated the Prevailing Wage Requirement shall be liable for any underpayment of the Prevailing Wage for work performed by Building Service Employees for no more than two years from the earlier of (a) the date that the related complaint was filed with the Comptroller, or (b) the date of th

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Effective: 10/23/2016Last amended: 4/2/2025

§ 50-04 Prevailing Wage Violations.

RCNY § 50-04

a. An Applicant found to have violated the Prevailing Wage Requirement shall be liable for any underpayment of the Prevailing Wage for work performed by Building Service Employees for no more than two years from the earlier of (a) the date that the related complaint was filed with the Comptroller, or (b) the date of the commencement of the Comptroller's independent investigation into the Applicant's compliance with the Prevailing Wage Requirement. b. An Applicant found to have violated the Prevailing Wage Requirement shall be liable for interest on the underpayment of the Prevailing Wage at a rate of not less than six percent per year and not more than the rate of interest then in effect as prescribed by the superintendent of banks pursuant to Section 14-a of the Banking Law per annum from the time such Prevailing Wage should have been paid. The rate of interest on such underpayment shall be calculated with due consideration to the number of persons employed by the Applicant, the good faith of the Applicant, the gravity of the Prevailing Wage violation, the history of the Applicant's previous Prevailing Wage violations and the Applicant's failure to comply with recordkeeping or other non-wage requirements. c. An Applicant found to have violated the Prevailing Wage Requirement shall be subject to a civil penalty in an amount not exceeding twenty-five percent (25%) of the underpayment of the Prevailing Wage and the interest found to be due. In assessing the amount of the civil penalty, due consideration shall be given to the size of the Applicant, the good faith of the Applicant, the gravity of the violation, the history of previous violations of the Applicant, and the failure to comply with recordkeeping or other non-wage requirements. The civil penalty shall be paid to the Comptroller for deposit in the city treasury. d. An Applicant for AHCC Program Benefits or ANNY Program Benefits may be subject to additional sanctions recommended by the Comptroller pursuant to subparagraph (ix) of paragraph (c) of the AHCC Act or subparagraph (ix) of paragraph (c) of the ANNY Act, as applicable. These include, but are not limited to, liquidated damages up to three times the amount of back wages and fringe benefits for willful violations and/or reasonable attorneys’ fees. e. An Owner shall be jointly liable for any violation of the 421-a Act, the New 421-a Act, the Extended Affordability Act, the ANNY Act, or the AHCC Act, as applicable, at the property receiving Benefits without regard to whether the Building Service Employees were directly employed by such Owner. (Added City Record 9/23/2016, eff. 10/23/2016; amended City Record 9/26/2017, eff. 10/26/2017; amended City Record 2/11/2019, eff. 3/13/2019; amended City Record 1/24/2020, eff. 2/23/2020; amended City Record 3/3/2025, eff. 4/2/2025)

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