§ 26-3806 Enforcement.
AC § 26-3806
a. The comptroller shall monitor compliance with the requirements of this chapter. Whenever the comptroller has reason to believe there has been a violation of this chapter, or upon a complaint in writing from a construction worker or their representative claiming a violation of this chapter, the comptroller shall conduct an investigation to determine the facts relating thereto. In conducting such investigation, the comptroller shall have the same investigatory, hearing, and other powers as are conferred on the comptroller by sections 234 and 235 of the labor law. b. At the start of an investigation conducted pursuant to this section, the comptroller may, in a manner consistent with the withholding procedures established by subdivision 2 of section 235 of the labor law, request that the department or city economic development entity, or any other relevant agency, withhold any payment due to the developer or construction employer in order to safeguard the rights of the employees. c. At the conclusion of an investigation commenced pursuant to this chapter, the comptroller shall offer the employer or employers that are subject of the investigation, with notice to the developer or recipient of city financial assistance on a housing development project on which the employer or employers performed work, no less than 90 days to cure once a stipulation of settlement has been executed. The comptroller may negotiate an agreed-upon stipulation of settlement or conduct a hearing concerning the alleged violation of this section. At least 10 days before the hearing, the comptroller shall give notice thereof together with a copy of the complaint, or a statement of the facts disclosed upon investigation, which notice shall be served personally or by mail on any person, developer, or construction employer affected thereby, or electronically, where such person, developer, or construction employer has consented. Such person, developer, or construction employer shall have the opportunity to be heard at the hearing regarding such matters. Any violations settled before the 90-day cure period will not negatively impact a developer’s eligibility to be awarded housing development projects receiving city financial assistance in the future. d. After the 90-day cure period, based upon the hearing record, the comptroller shall provide a report and recommendation concerning the alleged violation of this section to the mayor or mayor’s designee, who shall issue an order with a final determination. Such order may: 1. Direct payment of 1.5 times the wages and/or the monetary equivalent of benefits wrongly denied; 2. Direct the filing or disclosure of any records that were not filed or made available to the public as required by this chapter; 3. Direct the reinstatement of, or other appropriate relief for, any person found to have been subject to retaliation or discrimination in violation of this chapter; 4. Direct payment of a further sum as a civil penalty in an amount not exceeding 25 percent of the total amount found to be due in violation of this chapter; and 5. Direct payment of the sums withheld at the commencement of the investigation and the interest that has accrued thereon to the employer. e. In assessing an appropriate remedy, due consideration shall be given to the size of the employer’s business, the employer’s good faith, the gravity of the violation, the history of previous violations, and the failure to comply with record-keeping, reporting, anti-retaliation, or other non-wage requirements. f. When a final order has been entered against a developer or construction employer for 3 instances of violations not settled during the cure period within any consecutive 6 year period, determining that such employer has failed to comply with the wage, benefits, anti-retaliation, record-keeping or reporting requirements of this chapter, such employer, and any principal or officer of such employer who knowingly participated in such failure, shall be ineligible to submit a bid on or be awarded any city contract or financial assistance for a period of 5 years from the date of the third disposition provided, however, that where any such final order involves the falsification of payroll records or the kickback of wages, the employer or any officer of the employer who knowingly participated in the violation of this chapter shall be ineligible to submit a bid on or be awarded any city contract or financial assistance for a period of 5 years from the date of the final order. g. Before any further payment is made, or claim is permitted, of any sums or benefits due under any agreement covered by this chapter, it shall be the duty of the city or city economic development entity to require the construction employer to file a written statement certifying to the amounts then due and owing from each such employer to or on behalf of all employees, or the city for wages or benefits wrongly denied them, or for civil penalties assessed, and setting forth the names of the persons owed and the amount due to or on behalf of each respectively. This statement shall be verified as true and accurate by the employer under penalty of perjury. If any interested person shall have previously filed a protest in writing objecting to the payment to any employer on the ground that payment is owing to 1 or more employees of the employer for violations of this section, or if for any other reason it may be deemed advisable, the city shall deduct from the whole amount of any payment to the employer sums admitted by the employer in the verified statement or statements to be due and owing to any employee before making payment of the amount certified for payment, and may withhold the amount so deducted for the benefit of the employees or persons that are owed payment as shown by the verified statements and may pay directly to any person the amount shown by the statements to be due them. h. The comptroller may contract with non-governmental agencies to make referrals of possible violations of this chapter, provided, however, that the comptroller may not delegate authorities provided under sections 234 and 235 of the labor law to such non-governmental agencies. Where a developer or construction employer is found to have violated the requirements of this chapter, the comptroller may require the developer or construction employer to be liable to the city for reasonable costs incurred by the non-governmental agency in referring such violations. i. The comptroller shall maintain and publish on the comptroller’s website, on a monthly basis, a list of each employer or any officer of the employer found to be in violation of this chapter pursuant to the terms of a final order and include a copy of the final order with such list. (L.L. 2026/021, 1/17/2026, eff. 1/1/2027) Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2026/021.
