Department of Consumer and Worker Protection Begins Licensing Construction Labor Providers, Increasing Transparency in the Industry

June 9, 2022

Construction Labor Providers Must Provide Temporary Construction Employees with a Notice of Rights, Training Obligations, and Information about Work Assignments

NEW YORK, NY – Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga announced that, starting today, Construction Labor Providers must have a DCWP license to operate in New York City. Construction Labor Providers, also known as body shops or temp agencies, are businesses that supply temporary workers to third-party clients for non-union construction work or manual labor. The Law also requires Construction Labor Providers to provide employees with a notice of rights, a certification notice, and a notice of assignment in a language the worker understands.

“Temporary construction workers are often immigrants or individuals reentering the workforce and vulnerable to mistreatment and fear retaliation for reporting abuse,” said Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga. “Our agency is ensuring the businesses employing these workers are licensed, inform us of their business operations, maintain records, and provide their workers with information about their rights and responsibilities, which will increase transparency and safety in the industry.”

Licensing

Businesses that supply temporary workers to clients to perform construction work or manual labor on New York City worksites in exchange for compensation must now have a DCWP Construction Labor Provider license. Before the DCWP issues a license to a Construction Labor Provider, the provider must certify that it has read the specific requirements of the new law. The fee for a license is $200 for two years. Businesses can learn more about the licensing requirements and regulations at nyc.gov/BusinessToolbox or by calling 311.

The following do NOT need a Construction Labor Provider license:

• employment agency
• professional employer organization
• general contractor
• construction subcontractor (as defined in Section 20-564 of the NYC Administrative Code)

Mandatory Disclosures to Workers

Construction Labor Providers must also provide the following written disclosures to workers and obtain statements signed by each worker indicating that they received, read, and understood all of the mandatory notices. Workers should not sign these notices unless they received the completed notice in English and their primary language. The notices will be available in additional languages soon. These rights apply regardless of immigration status and criminal history.

• Notice of Certification
  

  This notice informs you of any certifications, trainings or other designations you need to do the job, the cost, and if the Construction Labor Provider will pay. You must get this notice before you are hired.

• Notice of Rights
  

  This notice discloses key worker protections, including safe and sick leave safe and healthy workplace minimum wage and overtime; workers’ compensation; unemployment insurance; discrimination free workplace and no retaliation. You must get this notice when you are hired.

• Notice of Assignment
  

  This notice informs you about the job assignment any equipment or protective clothing you need for the assignment and wages and benefits. You must get this notice before you go to a new construction site except in certain limited circumstances.

Workers who do not receive the mandatory disclosures, who believe their employer is unlicensed, or who believe their rights have been violated should call 311 or go to nyc.gov/workers to file a complaint. An overview of the rights is also available on DCWP’s website.

“I’m always proud to see our City working for our workers. DCWP new guidelines ensuring temporary workers know their rights and requiring Construction Labor Providers to have licenses will make sure that temporary workers are protected. I appreciate DCWP Commissioner Vilda Vera Mayuga for helping our city build back better and supporting our workers,” said Council Member Marjorie Velázquez, Chair of the Consumer Affairs & Worker Protection Committee.

“Construction labor providers, also known as body shops, often take advantage of the scarcity of employment opportunities for reentry and immigrant workers and effectively force these workers into dangerous jobs, with no training and low pay. I am thrilled, effective today, my bill requiring body shops to meet specific criteria in order to be licensed will regulate the institutions and companies that seek to exploit these vulnerable populations,” said Deputy Speaker Diana Ayala.  

Laborers’ Local 79 is proud to advance the rights of workers exploited by body shops,” said Mike Prohaska, Business Manager of Construction and General Building Laborers’ Local 79. “This new legislation will bring transparency and accountability to an industry operating in the shadows of New York City’s skyline and preying on vulnerable workers returning to the workforce from incarceration. Body shops are part of a broken system that trap workers, especially black and brown workers, in a cycle of poverty and incarceration. We believe the men and women who labor in the construction industry deserve a true pathway to middle-class careers. This new rule will expose body shops’ predatory practices and provide more information to workers about their rights. We are proud to support this effort to bring accountability and transparency to body shops. We thank the Department of Consumer and Worker Protection and bill sponsor, Councilwoman Diana Ayala, for their leadership.”

NYC Department of Consumer and Worker Protection (DCWP) protects and enhances the daily economic lives of New Yorkers to create thriving communities. DCWP licenses more than 51,000 businesses in more than 40 industries and enforces key consumer protection, licensing, and workplace laws that apply to countless more. By supporting businesses through equitable enforcement and access to resources and, by helping to resolve complaints, DCWP protects the marketplace from predatory practices and strives to create a culture of compliance. Through its community outreach and the work of its offices of Financial Empowerment and Labor Policy & Standards, DCWP empowers consumers and working families by providing the tools and resources they need to be educated consumers and to achieve financial health and work-life balance. DCWP also conducts research and advocates for public policy that furthers its work to support New York City’s communities. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp or on its social media sites, Twitter, Facebook, Instagram and YouTube.