MBI Leads the Charge for Passage of Amendment for New York’s Prevailing Wage Law, Protecting Modular Industry

• In December 2025, over MBI’s strenuous objections, New York Governor Kathy Hochul signed S.2536a, which expanded the state’s prevailing wage law to cover “off-site custom fabrication.” “Modules” were specifically cited for coverage under prevailing wage law.  

• After close coordination between MBI, the bill’s sponsor, and Gov. Hochul’s office, the sponsor introduced A.9464, as a “clean-up bill” that explicitly stated “modules” were not to be considered “custom fabrication.”  

• This amendment effectively exempts the modular industry from the fiscal and compliance burdens of prevailing wage.  

Setting The Stage 

Last year, at the end of the session, the New York State legislature quickly passed S.2536a, an enormous expansion of prevailing wage law. This bill brings prevailing wage coverage to “off-site custom fabrication,” specifically calling out “portions or modules of the building or [public works project].”  

Given the explicit mention of “modules,” coupled with the mandate to enforce this law in other “jurisdiction[s] outside the state,” S.2536a as originally adopted posed an existential threat to our industry in New York and beyond.  

While MBI advocated strongly for the legislature to vote against the bill, and again for the governor to veto it, ultimately, there was too much momentum and pressure from proponents in Albany to prevent it from becoming law.  

MBI Action 

MBI retained the services of a lobbying firm with deep connections to key state legislators and Governor Kathy Hochul’s office. Through a coordinated campaign of education and member activation, MBI was able to come to an agreement with the sponsor to introduce a “chapter amendment” or “clean-up bill”. That bill, A.9464 almost entirely exempts the modular industry from prevailing wage coverage.  

 In the images below, you can see clearly how the original bill would have directly impacted the modular industry, and how the chapter amendment reverses course.  

 Before:  

Important Definitions - “Custom Fabrication” and “Significant Portion of Building or Work”