Certain New York City condominiums and cooperatives may soon have an obligation to pay their building service employees the "prevailing wage". New York Real Property Tax Law § 467-a provides eligible NYC condominiums and cooperatives with a partial tax abatement. The New York State Assembly and Senate recently passed an amendment to § 467-a that would require recipients of the tax abatement to pay building service employees the "prevailing wage". If signed into law by New York State Governor Andrew Cuomo, the prevailing wage obligation would be effective January 1, 2020.
In New York City, the "prevailing wage" for "building service employees" is the wage and benefit rate set annually by the New York City Comptroller’s Office. Historically, the "prevailing wage" for residential building service employees has been the wage rate and the cost of the contributions to the benefit funds under the Manhattan Local 32BJ residential union contract. If signed into law, the amendment to § 467-a could mean large increases in labor costs for certain covered condominiums and cooperatives that are paying their building service workers below the prevailing wage.
For questions about the proposed law and its potential impact on your condominium or cooperative, please contact Robert Sparer or Daniel Rowoth.