On Aug. 27, 2010, Governor David A. Paterson signed the New York Construction Industry Fair Play Act, which goes into effect 60 days after enactment.

The Fair Play Act seeks to curtail misclassification of employees as independent contractors (ICs) in the construction industry, where misclassification appears to be far more prevalent than in other industries in New York. The Fair Play Act is likely to have the effect of eliminating most ICs in that industry by imposing a highly restrictive definition of “independent contractor” status, together with a “presumption” of employment as well as stiff corporate and personal civil criminal liability and criminal penalties for willful misclassification.

Legislative Background

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