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Sponsors
1 Co-sponsor
History
- Referred to labor
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Prohibits bidding on public contract by employer who fled state to avoid paying benefits to employees
In Assembly Committee · Labor · Sponsor Michael Gianaris
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Bill number
S5236
Title of bill
An act to amend the labor law, in relation to prohibiting employers who flee the state and avoid paying benefits to employees from bidding on public contracts
Purpose or general idea
To protect employee benefits, by prohibiting bids on public contracts by employers who have left the state without paying employee benefits.
Summary of specific provisions
Adds a new section 2020-i to the Labor Law to provide that an employer who terminates the conduct of a business in this state and who relocates such business, or a substantial part of such business, outside the state and avoids the payment of employee benefits, shall be prohibited from bidding on state financed public contracts for a period of two years until after such benefits are paid.
For the purposes of this bill, "substantial part" of a business means the employment of such business of more than 20% of the number employed in the business while operating within the state during the year immediately preceding the relocation outside the state. "Benefit" is defined as any statutory or contractual right which an employee is presently entitled to but which would be lost upon relocation outside the state.
Justification
The State puts thousands of items out for bid each year, all of which are paid for with State tax dollars. Those tax revenues should not be shared with companies who leave the State without paying employee benefits. By awarding state financed public contracts to such employers, the State is penalizing those businesses which have remained in New York and who act responsibly toward their employees.
Prior legislative history
1998 - A.3027 - Passed Assembly 1999-2000 - A.5416 - REFERRED TO LABOR 2002 - A.3825 01/11/07 referred to labor 01/09/08 referred to labor
Fiscal implication
None.
Effective date
This act shall take effect on the one hundred and twentieth day after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.