ECA News


Date ArticleType
12/29/2017 Industry News
Executive Order 162 Final Implementation Plan

The Cuomo administration posted its Executive Order 162 final implementation plan on the Empire State Development web site last Friday. 

Click here for the MWBE Executive Order 162 web pages.

Significant new or changed provisions include:

• Initial reports will be due after the first quarter of 2018, so after 4/1/18. Agencies are to set specific due dates 7 to 10 days after the end of the quarter, and will have discretion to provide a 30-day extension for initial report.
• Contractors and subs are required to report "gross wages," described as wages reported on employee's wage statements. The guidance includes a reference to the definition of "gross wages" in NYS tax rules.
• Agencies are given discretion to apply alternative reporting periods, to determine the contractor's role in subcontractor compliance, and other unspecified aspects of reporting.
• The guidance contains several changes specific to construction contracts, 
    o Wage reporting will be quarterly, not monthly, while pre-existing workforce utilization reports will remain monthly (although the FAQ document still references monthly reports for construction contracts). 
    o Agencies have discretion to accept certified payroll reports on prevailing wage payments as sufficient to meet the requirements of the EO.

Most other provisions of the guideline, FAQ, instructions and forms did not change from what has already been reported, including the applicability date (contracts executed on or after 6/1/17), categories of exempt contracts, and applicability thresholds ($100,000 for construction contracts, $25,000 for others). Several modifications discussed with the administration were not applied, e.g., a di minimis threshold for sub-contractors. -- Business Council of NYS

There are still issues and contradictory provisions in the Executive Order that need to be cleared up. ECA will continue to seek answers to the questions that remain. In the meantime, work closely with the agency/department that you are contracted with to make sure you're in compliance.