Mayor Bill de Blasio is formally dropping a legal challenge to a controversial law that regulates the pay of thousands of building workers here in the city.
The prevailing wage law governs service workers in buildings that receive at least $1 million in city subsidies or rent payments from the city.
The law places those workers under the jurisdiction of the city comptroller, who sets prevailing wages for a number of industries.
It was passed by the City Council over the objections of Mayor Michael Bloomberg, who vetoed the legislation, arguing it would hurt businesses.
After the Council overrode the veto, Bloomberg sued, and a judge ruled in his favor, which stopped the law from going into effect.
De Blasio has long supported the law.