There has been a rash of class action lawsuits against utility companies, utility contractors, and traffic control contractors. These lawsuits have alleged that on public works projects in New York City, workers performing “flagging work” must be paid the prevailing wage as “laborers.” Some of these lawsuits have resulted in multi-million dollar settlements. Previously, contractors have defended these suits by relying upon a distinction that existed in the law—recognizing that although flaggers are “construction laborers,” employees working as crossing guards (who merely direct vehicular traffic around a project site and do not work in or adjacent to a project site) are not covered by NYC’s prevailing wage requirements. Now, the law has changed. On June 1, 2024, the NYC Comptroller issued guidance in the form of a memorandum that essentially states that effective July 1, 2024, all flagging work performed on a public works project is covered by the NYC prevailing wage law, and flaggers must be paid utilizing the laborers’ rate. While the NYC Comptroller’s memorandum will be afforded a substantial degree of deference, it is neither a statute nor a formal regulation, and it remains to be seen whether and to what extent the federal and state courts will adopt it. In the meantime, contractors performing public work in any of the five boroughs of NYC should exercise caution whether they are self-performing traffic control work or subcontracting flagging services to a traffic control subcontractor.