Employment and labor laws comprise some of the most complex and extensive laws, not only in New York but in other states as well. Therefore, it is very critical for you, as an employer, to be cognizant of what laws, whether local or federal, apply to specific employment issues and jurisdictions, especially owing to the ubiquity of an explosion in lawsuits in the U.S., which has been coherent with a public obsession for litigation, a growing lawyer population, and the enactment of new laws and amendments of others.

Under this context, this blog reviews some of the requirements concerning recordkeeping and record retention for employers under the law on State Government Contracts (N.Y. Lab. Law §§ 220, 233), a key employment law in New York. Accordingly, some of the key elements discussed include applicable statutes under this law, including types of records required to be retained by employers and other relevant information for employers concerning compliance with requirements for recordkeeping and the retention of records.

However, it is crucial to mention that the information provided herein does not address requirements for the retention of records when a complaint or charge has been filed by an employee under the law on State Government Contracts. Nonetheless, although the requirements may apply to both public and private employers, the information is intended for the latter.

Types of Records that Must be Retained Pursuant to the Law on State Government Contracts

Pursuant to N.Y. Lab. Law §§ 220(3-a)(a)(iii), 233(1), subcontractors and contractors undertaking public projects or works in New York are required to maintain and retain original payrolls or transcripts of the same (1) indicating the name, address, days and hours worked, occupation, trade, or craft, rates of hourly wage paid, and any provided or paid supplements for every mechanic, laborer, or worker, (2) affirmed by, sworn to, or subscribed by the subcontractor and contractor as true under the perjury penalties, and (3) at the worksite during the entire period when the performance of the contract is underway.

Further, pursuant to N.Y. Lab. Law § 233(2), where any paid wages include amounts paid indirectly, whether expended for supplements and on a weekly basis, to the mechanic, laborer, or worker, such payroll records must also indicate (1) a list of all individuals who receive payments, (2) a record of the total net payments payable as per the payment agreement, (3) an inscribed and true copy of the agreement for payment, (4) the name and address of the individual who receives the payment, (5) the supplements for which payment is made, and (6) the payment per hour on behalf of such persons.

Duration of Retention Requirements Pursuant to the Law on State Government Contracts

Pursuant to N.Y. Lab. Law § 233(4), subcontractors and contractors in New York are required to retain such records for a duration of not less than three years after the work or project has been completed.

Penalties and/or Citations Following Failure to Comply with the Law on State Government Contracts

However, there is no applicable regulation or provision concerning penalties and/or citations for those who violate recordkeeping requirements under this law.

Other Key Information for Compliance

Nonetheless, it is critical for all subcontractors and contractors to comply with the recordkeeping and record retaining requirements under the law on State Government Contracts. For instance, pursuant to N.Y. Lab. Law § 220(3- a)(a)(iii), while those who maintain regular places of business must ensure records are available and accessible within five days upon request, other subcontractors and contractors holding contracts worth above $25000, but do not have regular business locations in the State of New York, must maintain and store the required payroll records on the specific worksite(s).

Additionally, as codified under N.Y. Lab. Law § 220(3-a)(c), any corporation, company, or individual undertaking a state government contract is subject to compliance when it comes to filing of payroll records. For example, a fiscal officer overseeing a contract under public works may require such a corporation or individual to file payroll records, affirmed and sworn to as accurate, true, and valid, within ten days of notice that such filing is required.

As usual, in case you need further clarification regarding the information shared in this blog post, we, the authoritative force in Employment & Labor Law, serving as primary counsel or cumis counsel and providing diverse legal services in both a traditional and online, web-based environment, whether it be for small or large-scale businesses on a panel or a case-by-case basis, are just a call or email away!

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