New York Enacts Construction Reporting Pay Act Creating New Scheduling and Wage Obligations for Construction Employers

Effective December 8, 2026, New York’s new Construction Reporting Pay Act (the “Act”) creates additional cancellation and reporting pay obligations for public-sector and private-sector construction employers.¹ The Act generally requires scheduling pay when scheduled shifts are canceled without sufficient notice and reporting pay when employees report to work and are provided with fewer hours of work than expected. The Act seeks to provide construction employees with greater certainty regarding their work schedules while helping to offset the financial consequences of shortened shifts, canceled assignments, and other last-minute changes to scheduled work.

The Act applies broadly to employers and employees who engage in construction activities in New York, without exception or distinction between non-union and union employers.

Key Requirements

Public Works (New York Labor Law § 224-G):

• Cancellation Pay: If a laborer, worker, or mechanic’s scheduled shift is cancelled with less than 12 hours’ notice, the employer must pay affected employees two hours of pay.

Reporting Pay: If a laborer, worker, or mechanic reports to work as scheduled and works fewer than four hours, the employer must compensate the employee for no less than four hours, or the length of the employee’s regularly scheduled shift if shorter than four hours.

The Act requires contractors working on public works projects to pay their employees cancellation and reporting pay at the applicable prevailing wage rate for the employee’s trade classification, including supplemental benefits and/or wages. The Act also clarifies that cancellation and reporting pay are “prevailing rate of wages or supplements,” meaning that such payments must be identified on certified payroll reports. Notwithstanding the above, if the prevailing wage schedule applicable to the employee’s jobsite provides cancellation or reporting pay benefits that exceed the requirements set forth above, these requirements do not apply, and the employer must instead comply with the requirements of the applicable prevailing wage schedule.

Private Construction (New York Labor Law § 196-E): 

• Cancellation Pay: If an employee’s scheduled shift is cancelled with less than 12 hours’ notice, the employer must pay affected employees two hours of pay. 
• Reporting Pay: If an employee reports to work as scheduled and works less than four hours, the employer must compensate the employee for no less than four hours, or the length of the employee’s scheduled shift if such shift is shorter than four hours.

For purposes of this provision, the Act applies to employees engaged in “construction” as defined in the New York Fair Play Act, New York Labor Law § 861-b. For private construction employers, the Act requires employers to pay cancellation and reporting pay at the employee’s “promised hourly wage.” Much like the public works provision, the private construction provision clarifies that cancellation and reporting pay are “wages” within the meaning of Article 6 of the NYLL, meaning that employees may bring a private right of action to recover unpaid reporting and cancellation pay and may seek the same remedies that can be sought for other unpaid wage claims, including liquidated damages.

Practical Impact for Employers 

The statutory text does not identify exceptions for disruptions outside the employer’s control. Accordingly, unless the New York State Department of Labor issues regulations or guidance providing otherwise, this means that employers could be obligated to pay cancellation and reporting pay even when the underlying disruption is outside of the employer’s control. As it stands now, no common-sense exceptions exist for weather conditions, material or equipment shortages, failed inspections, site-access restrictions, emergencies, or delays caused by owners, general contractors, or other trades. 

Accordingly, construction employers should act diligently to implement policies and procedures to mitigate the impact of reporting and cancellation pay prior to the December 8, 2026, effective date. This includes, but is not limited to, revamping scheduling and cancellation procedures, developing a policy whereby cancellations are memorialized in writing and timestamped, preparing time and payroll systems to pay cancellation and reporting pay when required, revising certified payroll processes to reflect cancellation and reporting pay, and tracking reporting and cancellation pay separately from hours worked for purposes of calculating overtime obligations.

Importantly, the legislature authorized the New York Department of Labor to adopt rules and regulations implementing the Act, so employers should monitor the Department’s rulemaking and publications for additional compliance tips.