Employee Liens Under New York Law: What A166 Means for NY Mechanics Lien Law

 

Can employees file liens to recover unpaid wages on construction projects in New York? With the introduction of Assembly Bill A166, the answer may be shifting. This blog explores the impact of A166 on traditional lien rights and how it could expand protections under NY mechanics lien law. We discuss the bill's proposal, who it could benefit from, and how contractors and employers should prepare.

 

What Is A166 and Why It Matters

Assembly Bill A166 proposes to allow individual workers to file liens for unpaid wages directly against real property where they performed work. Unlike traditional NY mechanics lien law, which mainly covers contractors, subcontractors, suppliers, and design professionals, this bill opens lien rights to laborers who are not otherwise protected, particularly in wage theft situations.

If passed, A166 would significantly shift how wage disputes are handled in the construction industry. Workers would no longer need to rely solely on labor law claims or lawsuits; they could place a lien on the property and prevent its sale or refinancing until the wage issue is resolved.

 

How This Expands Current NY Mechanics Lien Law

Under the current NY mechanics lien law, those eligible to file must have furnished labor or materials under a contractual relationship with the property owner or general contractor. Laborers are covered, but generally through their subcontracting employers. A166 proposes expanding lien eligibility to include employees working for subcontractors or even staffing agencies who have not been paid.

This extension would allow more workers to collect what they're owed. It also puts additional pressure on owners and prime contractors to ensure that lower-tier workers are paid on time and in full.

 

Implications for Contractors, Owners, and Filing Services

If A166 becomes law, property owners and developers will face a greater risk of lien filings for unpaid wages, even from workers several levels removed from the direct contract. This could significantly increase the importance of lien release tracking and wage documentation on all active projects.

Filing services that focus on NY mechanics lien law will likely see growing demand not only from contractors and suppliers, but also from individual workers seeking to recover unpaid wages. Employers should begin preparing now by tightening payroll compliance and clarifying payment chains.

 

Conclusion

Assembly Bill A166 could redefine how NY mechanics lien law functions by giving employees direct lien rights for unpaid wages. While it is still under review, the bill signals a broader shift toward empowering labor in the construction industry. Contractors, owners, and lien service providers should monitor this development closely and update compliance strategies accordingly. If passed, A166 would create new responsibilities and new protections for everyone involved in New York construction projects.

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