Prohibits state funding to business entities that outsource jobs

1 Co-sponsor

• Kevin S. Parker

BILL NUMBER:S7594A

Title of bill

An act to amend the labor law, in relation to prohibiting state funding to businesses that outsource jobs

Purpose

Allow State funding when applicable to those companies that create jobs within New York state and prohibit financial incentives for companies that send jobs outside the State.

Summary of provisions

Section 219 of the Labor Law, which details violations of certain wage payment provisions, is amended.

Existing law

None, although efforts have been made in the New York State Legislature to address this topic.

Justification

As jobs are consolidated and cut, and as companies recoup profits through different measures, workers will feel the effects through dimin- ished wages, decreased work hours and loss of their position to lower paid workers. Outsourcing is an attractable option for companies looking to cut their costs and it is our intention to create barriers for compa- nies that choose this option. A company should not be rewarded with state funding when they utilize the monies for workers outside the State.

The local economy often feels the affect of outsourcing for fewer jobs are available to local residents. In turn, quality-of-life is diminished as residents are left without viable forms of employment in their local town, village or county and are thus pressured to seek employment else- where, sometimes outside New York State.

Finally, as outsourcing continues and residents leave the state, tax monies that can be utilized to create new jobs are lost due to a decline in the number of residents.

The premise of this proposed legislation is simple: keeps jobs and resi- dents in New York State.

Legislative history

New bill.

Fiscal implications

None expected.

Effective date

This act shall take effect on the first of April next succeeding the date it shall become a law.