Construction Industry Wage Theft Act

Program Description:

On Labor Day of 2021, with much fanfare, Governor Hochul signed amendments to New York’s Labor Law to address the perceived problem of wage theft in the construction industry, which is where a contractor fails to pay its employees for their labor. While failing to pay for labor duly provided is reprehensible, New York’s new legislation imposes significant potential liabilities on otherwise innocent upstream contractors. As we approach the second anniversary of this law, we will explore what these amendments to the Labor Law mean for contractors and subcontractors (and those who manage their finances), and what can be done to protect an otherwise innocent upstream contractor from being held liable for a remote subcontractor’s failure to live up to its obligations under the law.

Members: $25
Non-Members: $50

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About the Presenter:

Gregory J. Spaun is an accomplished Partner at Welby, Brady & Greenblatt, LLP, concentrating his practice in construction and commercial litigation, as well as real estate and property litigation. He has an impressive record of representing clients in high-stakes cases, including North Star Construction Corp. v MTA Capital Construction Corp., where he successfully argued on appeal that a negligent misrepresentation claim against an owner/designer should not be dismissed because of credible allegations of a relationship that was the functional equivalent of privity sufficient to get around the lack of an actual contractual relationship. Mr. Spaun also achieved a significant victory in 110 Central Park South Corp. v 112 Central Park South, LLC, where he demonstrated that the common law implied housing warranty was superseded by Section 777 of New York's General Business Law, thereby preventing a cooperative building owner from asserting such a claim. Additionally, in Kamco Supply Corp. v JMT Brothers Realty, LLC, he prevailed on appeal in a case involving an unlicensed home improvement contractor's material supplier, highlighting the importance of verifying the licensure status of upstream contractors to preserve the ability to assert claims such as mechanic's lien claims. Mr. Spaun's expertise has also earned him the role of General Counsel to the Queens and Bronx Building Association, in addition to his work at WB&G.