RCNY tit. 74, ch. 7 — Non-Compliance | Rules of the City of New York (current through rules effective October 16, 2026) — City of New York

74 RCNY § 7-01 Determination of Non-Compliance.

§ 7-01 Determination of Non-Compliance. a. Scope. Failure to comply with any requirement under this title is a non-compliance. In addition to any other remedies established by law, rule, or regulation, the Mayoral Agency, in consultation with the Director, may impose civil penalties on a Contractor for its non-compliance and, if applicable, the non-compliance of any of its Subcontractors. Failure to meet a Community Hiring Goal alone will not be deemed as non-compliance subject to civil penalties unless the Contractor failed to demonstrate best efforts as set forth in 74 RCNY § 5-03. A Contractor may also be subject to civil penalties for failure to correct the non-compliance. b. Notice of Non-Compliance. When there is a finding of non-compliance, the Mayoral Agency, in consultation with the Director, will send written notice to the Contractor in a manner set forth in the contract. The Notice of Non-compliance must include, but need not be limited to, the following information: 1. a description of each instance of non-compliance and the reasons upon which the finding is based; 2. identification of the instances of non-compliance that require corrective action; 3. where applicable, the specific corrective action prescribed to remedy the non-compliance, the date and time by which the corrective action must be taken, and a list of the documents or information required to demonstrate performance of the corrective action, or instructions to propose a corrective action plan as defined under subdivision a of 74 RCNY § 7-02; 4. the amount of the applicable civil penalty, if any; and 5. instructions on how to respond to the non-compliance finding. c. Contractor Response to Notice of Non-Compliance. Within 45 calendar days of the date that the Notice of Non-compliance is sent by electronic means, or within a specified time agreed to by the parties in writing, a Contractor may submit a written response to a Notice of Non-compliance to the Mayoral Agency. The response must include all documents and information upon which the Contractor relies in support of the response. A Contractor’s failure to submit a timely response will be deemed an admission of non-compliance and acceptance of the civil penalty, if any. d. Final Agency Determination. Within 45 calendar days of the date that a Contractor’s response is sent by electronic means, or within a specified time agreed to by the parties in writing, the Mayoral Agency, in consultation with the Director, will send to the Contractor a final written determination, setting forth the reasons for the determination, and the assessment of civil penalties. The Mayoral Agency must also send a copy of the Final Agency Determination to the Director. A Final Agency Determination of non-compliance with any requirement under this title is a failure to satisfy a contract requirement that may be considered for purposes of evaluating the Contractor’s performance pursuant to 9 RCNY § 4-01. (Added City Record 12/24/24, eff. 1/23/25)

74 RCNY § 7-02 Corrective Action.

§ 7-02 Corrective Action. a. Determination of Corrective Action. Where the Mayoral Agency, in consultation with the Director, determines that the non-compliance may be remedied through corrective action, the Mayoral Agency may either: 1. prescribe a corrective action; or 2. request a corrective action plan from the Contractor. b. Corrective Action Plan. A corrective action plan proposed by a Contractor must include the following information: 1. an explanation for each instance of non-compliance; 2. the specific action to be taken to remedy each instance of non-compliance; and 3. the amount of time necessary to complete each corrective action and whether an extension of any applicable time limit is sought. c. Review of Corrective Action Plan. For the purpose of responding to the Notice of Non-compliance, Corrective Action Plans submitted by the Contractor will be subject to review and approval by the Director. Nothing in this section precludes the Contractor from taking any action to remedy or prevent recurrence of non-compliance. d. Compliance with Corrective Action. To comply with the corrective action either prescribed by the Mayoral Agency pursuant to paragraph 1 of subdivision a of this section or as set forth in the Corrective Action Plan pursuant to paragraph 2 of subdivision a of this section, the Contractor must demonstrate the corrective action taken to the satisfaction of the Director. Demonstration of corrective action may result in waiving of civil penalties by the Mayoral Agency, in consultation with the Director. Failure to provide documentation to demonstrate the corrective action taken may be subject to civil penalties. The assessment of the civil penalties for such failure will be included in the Final Agency Determination pursuant to subdivision d of 74 RCNY § 7-01. (Added City Record 12/24/24, eff. 1/23/25)

74 RCNY § 7-03 Civil Penalties.

§ 7-03 Civil Penalties. a. Schedule of Civil Penalties. The Mayoral Agency, in consultation with the Director, may impose penalties in accordance with the following penalty schedule: Citation Description of Non-Compliance Penalty 74 RCNY § 5-03 Failure to demonstrate best efforts to meet applicable Community Hiring Goal $2,500 74 RCNY § 7-02 Failure to demonstrate required corrective action taken to remedy the non-compliance $1,000 per week (Added City Record 12/24/24, eff. 1/23/25)