Relates to exclusion of certain services from employment

This bill provides for an exclusion from the definition of the term employment in the Unemployment Insurance Law for services performed for a non-profit organization or governmental entity in a "work-training" or "work-relief' program where the individual furnishes temporary services to the state or political subdivision in connection with a recovery from a disaster emergency.

Summary of Provisions:

Section 1: Provides that the term employment shall not include services performed for a nonprofit organization by an individual in a work-relief or work-training program assisted or financed in whole or in part by any federal agency or any agency of the state or political subdivision thereof pursuant to a declaration of a disaster emergency by the president, governor or chief executive of a political subdivision of the state, where the individual furnishes temporary services to the state or political subdivision thereof in connection with a recovery from a disaster emergency, provided that no federal law, rule or regulation specifically mandates unemployment insurance coverage be paid to such individuals in a particular work-relief or work-training program. This exclusion from the term employment means that these temporary disaster recovery services shall not be considered when calculating unemployment contributions or payments made by a non-profit organization.

Section 2: Provides that the term employment shall not include services performed for a governmental entity by an individual in a work-relief or work-training program assisted or financed in whole or in part by any federal agency or any agency of the state or political subdivision thereof pursuant to a declaration of a disaster emergency by the president, governor or chief executive of a political subdivision of the state, where the individual furnishes temporary services to the state or political subdivision thereof in connection with a recovery from a disaster emergency, provided that no federal law, rule or regulation specifically mandates unemployment insurance coverage be paid to such individuals in a particular work-relief or work-training program. This exclusion from the term employment means that these temporary disaster recovery services shall not be considered when calculating unemployment contributions or payments.

Section 3: Provides for an immediate effective date to apply to all individuals hired on or after such date.

Existing Law:

Labor Law sections 563(2) and 565(2) relate to exclusions of certain services from the term employment under the Unemployment Insurance Law.

Prior Legislative History:

This is a new bill.

Statement in Support:

The Department of Labor obtained National Emergency grants from the federal government to provide temporary jobs and training to individuals in need who assist in disaster recovery. Although Governor Cuomo directed the Department of Labor to establish these programs after tropical storms Irene and Lee; Superstorm Sandy and the June floods that occurred in Central New York, not all localities who need the assistance of these programs accepted the monies from these grants because they are concerned that the amount of their unemployment insurance (UI) contributions will increase when these temporary workers are no longer needed. This could result in the need to return NEG funds to the United States Department of Labor.

The United States Department of Labor permits states to adopt laws that exclude disaster recovery services when calculating unemployment contributions or payments, if those services are paid for by a non-profit organization or governmental entity where the services of the individual are temporarily provided to the State or a locality as part of an unemployment work-relief or work-training program, assisted or financed in whole or in part by any federal, state or local agency.

This bill will encourage the employment and training of workers in need. The bill will also provide needed services to communities while permitting governmental entities and non-profit organizations to pay for these services without concern that their budgets will increase when the services of these temporary workers are no longer needed.

Budget implications:

None.

Local impact:

This bill would have a positive local impact on localities in which a state of emergency has been declared.

Effective Date:

This act shall take effect immediately and shall apply to all individuals hired on or after such date.