NYC prevailing wage requirements for co-ops and condos

What is the NYC prevailing wage?

Prevailing wage is the wage and supplemental benefit rate established for specific types of work in New York City. For certain co-op and condo buildings, qualifying building service employees must receive the applicable rates for the property to remain eligible for the Co-op and Condo Property Tax Abatement.
 

What employees are covered by NYC prevailing wage?

The NYC prevailing wage requirement typically applies to qualifying building service employees who are regularly employed at a covered development and scheduled to work there for at least eight hours per week.

Depending on their duties, this may include cleaners, doorpersons, security guards, porters, handypersons, and other employees who provide building services. Boards should compare each employee’s actual duties with the job classifications in the current Comptroller schedule rather than relying only on their title.
 

2026/2027 prevailing wage

The NYC Comptroller’s current Building Service Employee Prevailing Wage Schedule applies from July 1, 2026, through June 30, 2027. Rates depend on the employee’s job classification, experience, and the period when the work is performed.

For residential buildings, the schedule includes:

• Residential building handyperson: $33.65 per hour from July 1, 2026, through April 20, 2027, increasing to $34.70 on April 21, 2027. The supplemental benefit rate is $16.07 through December 31, 2026, then $16.47.
   
• Residential cleaner, porter, doorperson, or elevator operator: $30.78 per hour through April 20, 2027, increasing to $31.78 on April 21, 2027. The supplemental benefit rate increases from $16.07 to $16.47 on January 1, 2027. Different rates may apply to qualifying new hires.

Boards should review every employee’s actual responsibilities before selecting a classification. Paid leave and other required benefits may apply in addition to the hourly supplemental benefit rate, so the full compensation package should be considered when planning the building’s 2026/2027 budget.
 

Can a co-op or condo opt out of the requirement?

A condo or co-op can potentially choose not to certify its NYC prevailing wage compliance, and instead forgo the Co-op and Condo Property Tax Abatement for the applicable period.
 

What are supplemental benefits?

Prevailing wage compensation may include both an hourly wage and supplemental benefits. Depending on the schedule, benefits may include health coverage, pension contributions, paid leave, or an equivalent payment.
 

What is the prevailing wage affidavit?

The prevailing wage affidavit is a certification submitted to the NYC Department of Finance. It certifies that all building service employees employed or to be employed at the property will receive the applicable NYC prevailing wage for the duration of the tax abatement.
 

Which co-ops and condos must file a prevailing wage affidavit?

A development seeking the Co-op and Condo Property Tax Abatement must generally file an affidavit when it:

• Has 30 or more residential units and an average unit assessed value above $60,000
   
• Has fewer than 30 residential units and an average unit assessed value above $100,000

The Department of Finance publishes a list of developments required to file.
 

What happens if a building does not comply?

A covered development that does not meet the NYC prevailing wage requirement may lose eligibility for the Co-op and Condo Property Tax Abatement. A development may also choose to opt out of the abatement, but doing so means forfeiting the related benefit.

Boards should work with their legal counsel and condo/co-op management company to compare the financial effect of compliance with the value of the abatement before deciding how to proceed.
 

How should boards prepare for NYC prevailing wage requirements?

Boards should begin planning well before the filing deadline. Helpful steps include:

1. Consult qualified professionals: Ask legal counsel, payroll professionals, and your management company for support.
    
2. Confirm whether the building is covered: Review the Department of Finance filing list and calculate the development’s average unit assessed value.
    
3. Identify qualifying workers: Review employee duties and contractor arrangements to determine which building service positions may be covered.
    
4. Check current rates: Compare wages and supplemental benefits with the Comptroller’s current schedule.
    
5. Model the budget impact: Calculate the full annual cost and compare it with the estimated value of the tax abatement.
    
6. Review payroll records: Confirm that wage and benefit documentation supports the statements made in the affidavit.
    
7. File on time: Assign responsibility for the affidavit and track the current Department of Finance deadline.

What records should the building maintain?

Boards should keep the filed affidavit and supporting payroll information in an organized location. Helpful records may include employee classifications, wage statements, benefit documentation, union or employment agreements, contractor information, and correspondence with professional advisers.

Good records give future boards a clearer history and can simplify the following year’s NYC prevailing wage review.
 

Can contractors create prevailing wage responsibilities?

Potentially. A building should not assume the requirement applies only to people employed directly by the co-op or condo. The role of a contractor and the work performed may affect the analysis. Before entering or renewing a building service contract, the board should ask qualified legal counsel whether prevailing wage language or supporting documentation should be included.
 

How can a property management company help?

A professional property management company like FirstService Residential can help simplify NYC prevailing wage compliance. Our local experts can help the board identify filing deadlines, organize employee information, gather payroll records, and coordinate with the building’s accountant and legal counsel.

FirstService Residential can also help boards model budget scenarios and keep the annual process moving, allowing community leaders to consider both compliance costs and the value of the abatement.
 

Frequently asked questions about NYC prevailing wage

Is NYC prevailing wage the same as minimum wage?

No. Minimum wage is the lowest general hourly rate permitted by law. Prevailing wage is a separate wage-and-benefit standard tied to particular job classifications and covered properties or projects. The applicable prevailing wage package may be substantially higher than the general minimum wage.
 

Does every NYC co-op and condo have to comply?

No. The requirement applies to developments that meet the Department of Finance’s unit-count and average-assessed-value thresholds and want to receive the Co-op and Condo Property Tax Abatement. Buildings below those thresholds generally do not file the prevailing wage affidavit for this program.
 

Is the average unit assessed value the same as market value?

No. Assessed value is a property tax figure determined by the Department of Finance. It is not the same as the unit’s sale price or estimated market value. Boards should use the figures and instructions provided for the abatement program when reviewing the filing threshold.
 

Do prevailing wage rates stay the same each year?

Not necessarily. The NYC Comptroller publishes wage schedules with specific effective periods. Boards should use the schedule covering the relevant payroll period rather than relying on rates used for a previous filing year.
 

About FirstService Residential

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To learn how FirstService Residential can support your association, contact our team today.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.