By New York has expanded pay protections for construction workers under the state’s Construction Reporting Pay Act, according to HRMorning. Covered construction employers in the state will face new reporting-pay and shift-cancellation pay obligations starting Dec. 8, 2026.
Under the law, covered employees who report for work at their employer’s request or with its permission must receive at least four hours’ pay, or their regularly scheduled shift if shorter, at their promised hourly wage. Shifts canceled with less than 12 hours’ notice will require two hours’ pay at that rate. On specified prevailing-wage projects, the law will require at least four hours’ reporting pay at the applicable prevailing wage, including supplements, unless the posted wage schedule provides greater reporting-pay benefits. Shifts canceled with less than 12 hours’ notice will require two hours’ pay at the applicable prevailing wage, including supplements.
What the law covers
The Construction Reporting Pay Act applies to construction employers and construction workers in New York. The core obligation is straightforward: when an employer asks a worker to report, or permits them to report, the employer must compensate that worker for a minimum block of time even if no work is available or the shift is cut short.
The four-hour minimum is reduced only when the regularly scheduled shift is shorter than four hours. In that case, the worker receives pay for the scheduled shift length. The rate is the promised hourly wage, which means payroll teams need to know what rate was communicated to each worker at the time of scheduling or hiring.
The cancellation provision creates a separate obligation. If an employer cancels a shift with less than 12 hours’ notice, the worker is entitled to two hours’ pay at the same promised hourly rate. This applies whether the cancellation happens by phone, text, app notification, or any other method.
Prevailing-wage projects add complexity
On specified prevailing-wage projects, the reporting-pay and cancellation-pay calculations change. The four-hour reporting-pay obligation must be paid at the applicable prevailing wage, including supplements. The two-hour cancellation pay must also be paid at that prevailing wage rate, including supplements.
There is one exception: if the posted wage schedule for the project provides greater reporting-pay benefits than the statutory four-hour minimum, those greater benefits apply instead. Payroll teams working on public or publicly funded construction projects need to check the posted wage schedule for each project before processing reporting pay.
The inclusion of supplements is significant. Prevailing wage in New York includes both the base hourly rate and the value of benefits such as health insurance, pension contributions, and apprenticeship training funds. Payroll teams must calculate reporting pay and cancellation pay using the combined rate, not just the base wage.
What payroll teams should do now
The effective date of Dec. 8, 2026 gives employers time to prepare, but the changes touch multiple systems and processes. Payroll teams should start by identifying which employees fall under the law’s coverage. Construction workers in New York who report to a physical worksite or employer location are the primary group, but the definition of covered employee should be confirmed against the statute and any guidance issued by the New York Department of Labor.
Scheduling procedures need a documented timestamp for shift cancellations. The 12-hour notice threshold means employers need a reliable record of when a cancellation was communicated and when the shift was scheduled to start. Without that record, disputes over cancellation pay become difficult to resolve.
Payroll configuration changes are also required. The system must be able to pay reporting pay at two different rates depending on the project: the promised hourly wage for private work and the prevailing wage including supplements for specified prevailing-wage projects. For workers who move between project types, the correct rate must be selected each time.
Common mistakes to avoid
One likely error is treating reporting pay as regular hours for overtime purposes. The law does not state that reporting pay counts toward the 40-hour overtime threshold under New York Labor Law, but payroll teams should confirm how the state interprets this before Dec. 8, 2026. Applying the wrong overtime treatment could create underpayment or overpayment liability.
Another mistake is assuming that cancellation pay and reporting pay are mutually exclusive. A worker whose shift is canceled with less than 12 hours’ notice is entitled to two hours’ cancellation pay. If that same worker had already reported to the worksite before the cancellation was communicated, the four-hour reporting-pay obligation may also apply. The law does not state that one obligation replaces the other.
A third risk area is the promised hourly wage. If an employer offers a worker a rate for a specific shift or project, that rate becomes the basis for reporting pay and cancellation pay. Payroll teams cannot substitute a lower standard rate unless that lower rate was the one actually promised.
Deadlines and next steps
The law takes effect Dec. 8, 2026. There is no phase-in period described in the source. Employers should treat that date as the point when all covered shifts, including those scheduled before the effective date but occurring on or after it, are subject to the new requirements.
Payroll teams should update scheduling and payroll procedures to capture reporting pay and cancellation pay, distinguish the applicable wage requirements, and include supplements where required. Employers with questions about coverage, rate calculations, or interaction with existing collective bargaining agreements should confirm the rules with the New York Department of Labor or qualified employment counsel before the effective date.
Sources: HRMorning
Photo: Construction site in Cologne, Germany (2017) by Whiteghost.ink, CC BY-SA 4.0
