Relates to displaced building service workers

Title of bill

An act to amend the labor law, in relation to displaced building service workers

Purpose

To promote stability in employment for building service workers.

Summary of provisions

Section 1 contains the findings of the legislature regarding volatility of the real estate industry coupled with new trends in the service economy that are undermining stable employment relationships and creating a drain on an already over-burdened social services system. It is a policy of the state to promote stability for building service workers, which will reduce the need for social services resulting from unemployment.

Section 2 amends the labor law by adding a new section 202-n. Subdivision 1 contains definitions. Subdivision 2 provides building service employees temporary protection from loss of employment when the building in which they are employed is sold or its control transferred to another entity or, if they are employed by a contractor, when their contractor loses its service contract and is succeeded by a new contractor retained by the building owner or manager. In either situation, the successor employer would be required to offer employment to the incumbent employees, subject to cause, for ninety days. Nothing in the bill would limit the successor employer's ability to establish terms and conditions of employment for the employees or to reduce its employee complement from that of the incumbent employer. Under the bill, the predecessor employer would be required to provide information to the successor employer to facilitate the latter's retention of the covered employees. A private enforcement action is further provided. The legislation would not apply to successor employers who agree to be bound by, or who enter into, collective bargaining agreements that provide terms and conditions for the discharge and laying off of employees, or to predecessor employers who obtain commitments from successor employers that they will be bound by such collective bargaining agreements.

Section 3 of the bill provides that the act shall take effect immediately.

Existing law

None

Justification

This legislation provides stability in employment for building service employees by establishing minimum standards for job security. In the building service industry, contractor turnover in a particular building is not uncommon based on the competitive bidding cycle. As a result, building service employees may face loss of employment due to a change in employer and having nothing to do with such an employee's performance. Such unemployment can burden social services, as well as remove from buildings employees who are familiar with tenants and others who work there. This disruption undermines the sense of security and safety in buildings that is critically important in our current environment. Similar consequences result when buildings are sold or a transfer in control occurs. In response to these issues, other state and local governments have enacted building service employee retention laws or regulations on which the bill is modeled to address these same concerns, including New York City, the District of Columbia, Philadelphia, Los Angeles and the state of California.

Legislative history

New bill

Fiscal implications

Undetermined

Local fiscal implications

Undetermined

Effective date

This act shall take effect immediately.