Compliance Investigations, Compliance Determinations, Settlements.
44 RCNY § 6-06
in effect§ 6-06 Compliance Investigations, Compliance Determinations, Settlements.
(a) The Bureau may investigate and determine liability for underpayments for Construction Work on its own initiative; upon the filing of a written complaint with the Bureau by a Complaining Worker or their representative; or upon a referral from the New York State Department of Labor, the United States Department of Labor, a labor union, or any other government or labor enforcement agency with an interest in the Construction Work at issue.
(b) The Bureau may decline to investigate and determine underpayments of Wages and Supplements if a Complaining Worker or Complaining Worker’s representative has participated in any other legal proceeding to recover the same unpaid Wages and Supplements that are the subject of the complaint.
(c) The Bureau will not disclose the name or identity of a Complaining Worker unless necessary for settlement or hearing and only with the consent of such Complaining Worker.
(d) Any Person under investigation by the Bureau has the right to be represented by counsel at their own expense. The Bureau must notify such Person of the right to counsel at the commencement of a compliance investigation in which Documents may be demanded. Counsel must file a written notice of appearance with the Bureau. All notices, Documents or other communications will be sent to such counsel subsequent to such filing and shall be deemed to constitute service upon such Person.
(e) During a compliance investigation, all relevant information and Documents must be provided to the Bureau within the time requested by the Bureau including, but not limited to, the Documents specified in 44 RCNY § 6-05. All Documents produced to the Bureau must be in machine-readable format.
(f) The Bureau may commence a proceeding at OATH against any Person under investigation who fails to provide true and accurate information and Documents within the time requested by the Bureau in connection with such investigation.
(g) The Bureau may impose a penalty of five hundred dollars ($500) on any Person under investigation for each request for information or Documents such Person has failed to timely produce on or before the first scheduled appearance date, in addition to any other monetary liability OATH may impose as a result of the Bureau’s investigation.
(h) The Bureau must send a written notice to any Person under investigation indicating that it will begin to calculate the amount of underpayments of Wages and Supplements and that such amounts will be set forth in a determination. In preparing a determination, the Bureau will not consider any information or Documents requested by the Bureau that were not provided within the time period specified in such written notice.
(i) If an Owner, prime contractor, or Construction Employer failed to keep or timely provide the Bureau with accurate records as required by 44 RCNY § 6-05, the Bureau is permitted to calculate underpayments of Wages and/or Supplements due to Construction Employees by using the best available evidence, and the burden shifts to the Owner, prime contractor, or Construction Employer to negate the reasonableness of the Bureau’s calculations. In such case, the amount and extent of underpayment is a matter of reasonable inference and may be based upon the statements of Construction Employees.
(j) No Person may interfere with any compliance investigation, proceeding, or hearing undertaken by the Bureau. An adverse action or coercive statement made against any Complaining Worker or Construction Employee that penalizes or is reasonably likely to deter the Complaining Worker or Construction Employee from exercising or attempting to exercise their right to receive Wages and Supplements may be deemed impermissible interference with a compliance investigation under this section. The exercise of rights includes, but is not limited to, filing a complaint with the Bureau, participating in a compliance investigation, and testifying at a hearing conducted by the Bureau. An Owner or Construction Employer may not avoid its obligation to comply with the Construction Wage Requirement through its own misconduct.
(k) The proximity in time between the exercise of rights and the adverse action may be considered evidence of a causal connection and an intent to interfere with an investigation.
(l) The Bureau may assess an underpayment of Wages and Supplements on behalf of a Construction Employee who has been the subject of an interference. Such assessment may include: (i) the amount that such Construction Employee would have earned but for the interference; (ii) interest on such amount; and (iii) civil penalties of up to twenty-five percent (25%) of the total amount found to be due.
(m) The Bureau will utilize the best available evidence, including, but not limited to, an average of the hours worked in the four (4) pay periods prior to an impermissible interference with a compliance investigation, to calculate the amount a Construction Employee would have earned but for such interference.
(n) The Bureau may resolve a compliance investigation by stipulation of settlement, which includes: (i) findings and assessments as to the underpayment of Wages and Supplements, (ii) findings as to the willfulness of the Violation, (iii) assessments of interest, (iv) civil penalties, and (v) compliance measures reasonably calculated to deter future Violations.
(o) Stipulations of settlement resolving compliance investigations under RPTL § 485-x(3) are endorsed by the Comptroller and have the effect of an order of the Fiscal Officer under Labor Law §§ 220 and 220-b.
(p) A private settlement between a Construction Employee and an Owner, Applicant or Construction Employer, or the execution of a release by a Construction Employee in favor of an Owner, Applicant or Construction Employer, does not preclude investigation by the Bureau and a determination as to an underpayment of Wages and Supplements for such Construction Employee or a finding of impermissible interference with the Bureau’s investigation.
(q) Interest.
(1) The Bureau assesses interest due on the underpayment of Wages and Supplements from the date of underpayment at the rate of interest then in effect as prescribed by the Superintendent of Banks under § 14-a of the Banking Law per annum, and such interest cannot be waived by stipulation of settlement.
(2) Upon resolution of a compliance investigation by stipulation of settlement, the Bureau may reduce the rate of interest on the underpayment of Wages and Supplements to a rate of interest not less than six percent (6%), based upon due consideration of the size of the business of an Owner, Applicant or Construction Employer, the good faith of such Owner, Applicant or Construction Employer, the gravity of the Violation, the history of previous Violations and the failure to comply with recordkeeping or other non-wage requirements.
(r) Civil Penalty.
(1) The Bureau may assess civil penalties for failure to comply with the Construction Wage Requirement in accordance with the criteria set forth in Labor Law §§ 220(8) and 220-b(2)(d).
(2) An Owner, Applicant, or Construction Employer, that is found to have violated the Construction Wage Requirement shall be subject to a civil penalty in an amount not exceeding twenty-five percent (25%) of the underpayment of the Construction Wage and the interest found to be due.
(3) In assessing the amount of the civil penalty, due consideration shall be given to the size of the Owner, Applicant or Construction Employer, the severity of the Violation, the history of previous Violations, good faith cooperation with the Comptroller’s investigation, and the failure to comply with recordkeeping or other non-wage requirements. The civil penalty shall be paid to the Comptroller for deposit in the city treasury.
(s) The Bureau will send written notice to a Construction Employee or the Construction Employee’s representative upon closure of a compliance investigation without a finding of Violation. This notice of a final determination is binding on such Construction Employee, and its issuance commences any applicable time limits under article 78 of the New York State Civil Practice Law and Rules. If the Applicant or Construction Employer under investigation has been notified of the compliance investigation, the Bureau will send written notice of closure without a finding of Violation to such Applicant or Construction Employer.
(Added City Record 6/30/2026, eff. 7/30/2026)
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-155817Fetched: 10/24/2026