New York Court Strikes Down Prevailing Wage Law

A New York law that required companies that received over $1 million in economic aid from the city to pay employees a prevailing wage and maintain records of workers’ hours and benefits information was struck down on Tuesday by the state’s Supreme Court. Despite the court’s view that the law may have been good for New York City, it was struck down because it preempted the existing minimum wage law.  Small businesses, nonprofits, manufacturing plants, and facilities under the city’s Health and Hospital Corp. would be exempt from the using the prevailing wage, which would be set annually by the city’s Comptroller.

Mayor Michael Bloomberg filed suit against the law after his veto was overridden by the 51 member City Council. The Mayor believes that such a law would prevent investment in the city and would have detrimental effects on many job-creating projects. The City Council has expressed its disagreement with the court’s decision and is will attempt legal action to overturn the ruling.

—

Kevin Rizzo (@kevinrizzo10) is editor of Crime in America. An Ohio Native, the George Washington University senior was a founding member of Law Street. Contact Kevin at krizzo@LawStreetMedia.com.

Featured image courtesy of [Zbyszek Zolkiewski via Flickr]

Kevin Rizzo

Kevin Rizzo is the Crime in America Editor at Law Street Media. An Ohio Native, the George Washington University graduate is a founding member of the company. Contact Kevin at krizzo@LawStreetMedia.com.