Hochul Signs the Construction Reporting Pay Act — What Contractors Need to Know
On September 9, 2026, Governor Hochul signed the Construction Reporting Pay Act (S.9843), now Chapter 291 of the Laws of 2026. The new law creates two new obligations for construction employers:
(1) “reporting pay” when an employee shows up for work and is sent home, and
(2) “cancellation pay” when a scheduled shift is called off on short notice.
The law takes effect on December 8, 2026.
These requirements apply to all construction employers on both private-sector and prevailing-wage projects. That means open-shop and merit-shop contractors are covered, too.
Private-Sector (Non-Prevailing-Wage) Projects
- Cancellation pay: If you cancel an employee’s scheduled shift with less than 12 hours’ notice, you must pay that employee two hours at his or her promised hourly wage.
- Reporting pay: If an employee reports to the job site at your request or with your permission, you must pay at least four hours at the employee’s promised hourly wage or the full length of the scheduled shift if it was shorter than four hours.
Prevailing-Wage Projects
- Cancellation pay: If you cancel a worker’s scheduled shift with less than 12 hours’ notice, you must pay two hours at the applicable prevailing rate of wages, including supplements, for that worker’s scheduled trade classification.
- Reporting pay: If a worker reports for duty at your request or with your permission, you must pay at least four hours at the applicable prevailing rate of wages, including supplements, for that worker’s scheduled trade classification.
- Exception: If the posted prevailing-wage schedule for a project already provides show-up pay or benefits that are more generous than what the new law requires, the existing schedule controls.
The Act covers a broad range of construction activity including new construction, reconstruction, alteration, maintenance, repair, renovation, demolition, and excavation. If your company performs any of these types of work in New York, these rules will apply to you.
What This Means for Your Business:
Here are the steps you should take before December 8 to prepare for compliance:
- Update your scheduling and dispatch procedures so that shift cancellations are documented with a time stamp.
- Establish a written cancellation-notice policy and train supervisors on the 12-hour notice threshold.
- Adjust your payroll systems to calculate and record reporting pay and cancellation pay separately.
- Review your timekeeping practices to capture when employees report to the site and when they are released.
The New York Department of Labor has authority to adopt rules and regulations before the effective date. Watch for additional guidance that may clarify open questions about how these requirements will be administered.
The ABC Empire State Chapter will continue to monitor implementation of the law and provide members with additional guidance before the December 8 effective date.