Makes technical corrections to the New York state commercial goods transportation fair play act

BILL NUMBER:S6336A

Title of bill

An act to amend the labor law, in relation to making technical corrections to the "New York state commercial goods transportation industry fair play act"; and to amend chapter 558 of the laws of 2013 amending the labor law relating to enacting the "New York state commercial goods transportation industry fair play act", in relation to the effectiveness thereof

Purpose or general idea of bill

To prevent misclassification of commercial goods transportation services employees.

Summary of specific provisions

Section 862-a (1)(3) and 6 changes definition to remove references to commercial vehicle drivers and commercial driver's license and replaces with a driver who possesses a state issues driver's license who transports goods in New York State and operates a commercial motor vehicle as defined in subdivision four-a of section two of the transportation law.

Section 862-b (1) - provides for the classification of an employee of the commercial goods transportation contractor unless payment for such services is reported on a Federal Income Tax for 1099 if required by law as one of the criteria for being deemed an independent contractor.

Section 862-b(2) - adds firm, limited liability company, association and other legal entity to conform with definition to in Section 862-a of the law.

Section 862-b 2 (e) - adds language clarifying that an independent contractor may make their services available to the general public or to parties not subject to the contract referenced in paragraph (g) of this subdivision.

Section 862-b 2 (f) - again provides for the reporting of services on a Federal Income Tax for 1099 as a determining factor of whether a person is and employee or independent contractor.

Section 862-b 2 (i) - provides that an independent contractor can hire its own employees without approval of the commercial goods transportation contractor.

Section 862-c - maintains the posting of the responsibility of the independent contractor but removed that this posting be constructed of materials capable of withstanding adverse weather conditions.

Effective date is changes from sixty to ninety days.

Justification

From Governor Cuomo's Approval Memo #20:

"This bill establishes a statutory test for determining whether individuals in the trucking industry are classified as employees or independent contractors. Both business and labor have long sought changes to New York's existing independent contractor test, which has

resulted in inconsistent standards, causing confusion for all affected parties.

The major stakeholders representing both the trucking industry and labor have urged me to sign this bill in order to bring clarity to this area of law. Nevertheless, I was concerned that certain technical issues with the legislation resulted in a test that did not address the independent contractor issue in the trucking industry in a fair and consistent manner. Therefore, I have come to an agreement with the legislature on an amendment to this bill that will address these issues and will result in a law that more comprehensively encompasses the trucking industry's workforce.

I believe that New York should have an independent contractor test that is uniform across all industries in order to ensure that both employers and workers are protected by the law. This bill is a step towards establishing such a test."

Legislative history

Chapter amendment to Chapter 558 of the Laws of 2013

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect immediately and shall be deemed to have been in full force and effect on the same day as chapter 558 of the laws of 2013 took effect.