Enacts the "New York State Commercial Goods Transportation Industry Fair Play Act"; redefines the definition of "employee"

10 Co-sponsors

• Joseph P. Addabbo Jr.
• Tony Avella
• Phil Boyle
• Martin Malavé Dilan
• Martin J. Golden
• Ruth Hassell-Thompson
• Liz Krueger
• George Latimer
• Jack M. Martins
• José Peralta

BILL NUMBER:S5867

Title of bill

An act to amend the labor law, in relation to enacting the "New York state commercial goods transportation industry fair play act"; and to amend the workers' compensation law, in relation to the definition of employee

Purpose or general idea of bill

To prevent misclassification of commercial goods transportation services employees.

Summary of specific provisions

This legislation (1) defines presumption of employment in the commercial goods transportation industry; (2) outlines commercial goods transporta- tion contractors' obligation to correctly classify employees and to inform subcontractors, of their obligations regarding employee classi- fication; (3) defines penalties for contractors and sub-contractors who violate and willfully violate the provisions of the law; and (4) protects against employer retaliation.

Justification

A study conducted by Cornell University's School of Industrial and Labor Relations found that in New York State between 2002 and 2005, nearly 40,000 employers misclassified more than 700,000 workers - more than 100 of the state's private sector workforce.

Misclassification rates are disproportionately high in the trucking industry. Port truck drivers and delivery truck drivers (e.g. FedEx and UPS drivers) are often improperly classified as independent contractors.

Unlike real independent contractors, these workers are subject to strin- gent behavioral controls and are financially dependent on the company. Such drivers who functionally operate as employees are classified as independent contractors and therefore deprived of proper social security benefits, healthcare, workers' compensation, unemployment benefits, minimum wage protections, rights to join a union, and the right to a safe and healthful workplace.

Additionally, as pressures increase to improve environmental conditions at ports across the United States, truck drivers are being asked to purchase new, more environmentally friendly trucks. However, with sala- ries averaging around $29,000, truck drivers cannot afford this ask. By correctly classifying truck drivers as employees, the burden of purchas- ing new trucks would be put on the companies; employees would enjoy their proper rights as intended by the law, and environmental conditions at ports would improve.

Legislative history

2012 Session - S. 6267 - Golden 2013 also see S.4589

Fiscal implications for state and local governments

None.

Effective date

60 days following enactment.