Effective as of June 9, 2022, the Administrative Code of the City of New York[1] was amended to require that “certain businesses that supply their employees to clients for the performance of construction work or manual labor on the client’s construction site, in exchange for compensation, be licensed.”[2]

These businesses are defined as “construction labor providers”[3].  “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.”[4]  Notwithstanding, “[t]he term ‘construction’ in this bill explicitly excludes handyman work.”[5] A license is also not required for employment agencies, professional employer organizations, general contractors and subcontractors (as defined in §20-564 of the NYC Administrative Code[6]).

As explained by Commissioner Vilda Vera Mayuga of the  Department of Consumer and Worker Protection, ‘“[t]emporary construction workers are often immigrants or individuals reentering the workforce and vulnerable to mistreatment and fear retaliation for reporting abuse.”’[7] This law is designed to ensure that: ‘“businesses employing these workers are licensed, inform [Department of Consumer and Worker Protection] 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.”’[8]

“Applying for a license would require certain signed statements and select information on business operations, and each covered business would have to supply their workers with a series of notices: on their rights as workers covered by this bill; training and certifications the employees would need to perform their work duties; and information on the employees’ work assignments.” [9]

“Businesses that violate the bill’s subchapter would also be subject to penalties. Employees of the businesses aggrieved by a violation of the bill’s subchapter would be able to initiate a private right of action against their employers for violations of the bill, including for retaliation against employees for availing themselves of rights provided by this bill.”[10]

This is another issue to be considered when performing construction work in New York City. Jaspan Schlesinger LLP can help you navigate these issues and other construction law related matters. If you need assistance, please contact Christopher E. Vatter at cvatter@jaspanllp.com.


[1] 2022 N.Y.C. Local Law No. 150, N.Y.C. Admin. Code §§150-564.

[2] https://www1.nyc.gov/site/dca/about/new-laws-rules.page

[3] A construction labor provider “means a person who employs and supplies a covered construction worker to a third party client for the performance of construction work or manual labor for a construction project of such client on a site in the city, in exchange for compensation from such third party client, provided that the completion of such project is directed by such client or such client’s contractor and not such person.” (2022 N.Y.C. Local Law No. 150, N.Y.C. Admin. Code §§150-564.1).

[4] https://www1.nyc.gov/site/dca/media/pr060922-DCWP-Begins-Licensing-Construction-Labor-Providers.page

[5] https://www1.nyc.gov/site/dca/about/new-laws-rules.page; see also NYC Administrative Code §20-564 and 28-

[6] https://www1.nyc.gov/site/dca/businesses/license-checklist-construction-labor-provider.page

[7] https://www1.nyc.gov/site/dca/media/pr060922-DCWP-Begins-Licensing-Construction-Labor-Providers.page

[8] Id.

[9] https://legistar.council.nyc.gov/LegislationDetail.aspx?ID=4966517&GUID=23CA198A-0612-439D-AB54-14065535D735&Options=ID|Text|&Search= see also Construction Labor Provider License Application Checklist.


[10]  https://www1.nyc.gov/site/dca/about/new-laws-rules.page#:~:text=require%20certain%20businesses%20that,provided%20by%20this%20bill.