What's happening
This bill requires employers who relocate out of New York State to continue making unemployment insurance contributions for two quarters for terminated employees.
Why it matters
Helps maintain the solvency of New York's unemployment insurance fund. by ensuring that companies leaving the state still contribute for a short period, addressing the financial gap when multiple employees are laid off due to relocation.
Directly supports workers losing their jobs due to corporate relocation. by requiring employers to report which employees are terminated and their weekly wages, making it easier for affected workers to access unemployment benefits.
Creates an additional cost and reporting requirement for businesses considering relocation out of New York. , which could influence corporate decision-making and potentially deter some relocations.
Targets a specific loophole in existing law. where employers could currently stop paying into the unemployment system immediately upon leaving, shifting the financial burden of layoffs onto the remaining pool of employers and taxpayers.
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Who cares
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Make Exiting Employers Pay Unemployment
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to labor
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Make Exiting Employers Pay
In Assembly Committee · Labor · Sponsor Kevin Cahill
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2188
2017-2018 Regular Sessions
IN SENATE
January 12, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to enacting the Unemployment Insurance Liability Act of 2017
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "Unemployment Insurance Liability Act of 2017".
§ 2. Legislative findings. The legislature hereby finds and declares that employers that have relocated out of New York state are not required to make scheduled quarterly contributions to the unemployment insurance fund once they have left the state.
The legislature further declares that this creates a continuing hardship on the fund which threatens its solvency.
Therefore, the legislature declares that employer contributions to the unemployment insurance fund shall continue even after the employer has left New York state, where former employees are receiving benefits.
§ 3. Subdivision 1 of section 562 of the labor law, as amended by chapter 103 of the laws of 1965, is amended to read as follows:
1. Required coverage. (a) Any employer who has once become liable for contributions under this article with respect to persons other than persons employed in personal or domestic service in private homes shall [cease to be liable as of] remain liable until the first day of the calendar quarter next following the filing of his written application provided the commissioner finds that the employer has not relocated out of state or, with respect to [such] persons other than those employed in personal or domestic service in private homes, paid remuneration of three hundred dollars or more in any of the four calendar quarters preceding such day.
(b) An employer who has relocated out of state shall remain liable for contributions to the fund for two quarters from the date on which
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01669-01-7
S. 2188 2
the relocation occurred. Contributions to the fund shall be based on the final quarterly report as submitted.
(c) An employer who has relocated out of state shall:
(i) identify all employees being terminated as a result of the relocation, and
(ii) include the amount of weekly wages paid to such individuals as part of the final quarterly payroll report submitted to the department.
(d) Any employer who has once become liable for contributions under this article with respect to persons employed in personal or domestic service in a private home shall cease to be liable as of the first day of the calendar quarter next following the filing of his written application, provided the commissioner finds that the employer has not with respect to such persons paid remuneration in cash of five hundred dollars or more in any of the four calendar quarters preceding such day.
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to enacting the Unemployment Insurance Liability Act of 2017
Purpose or general idea of bill
Amends the labor law to require that employers who have relocated their businesses outside of New York State have continued liability for contributions to the unemployment insurance fund.
Summary of specific provisions
The bill would require that employers who have relocated out of state remain liable for contributions to the fund for two quartets from the date of relocation. Contributions would be based on the employer's last quarterly report. The bill would also require that a relocating employer identifies all employees being terminated as a result of the relocation and specifies the amount of their weekly wages.
Effects of present law which this bill would alter
Amends section 562 of the labor law.
Justification
Because contributions to the unemployment insurance fund are based on quarterly payroll reports, businesses that relocate out of state no longer make contributions to the fund. Still, workers who have lost their jobs as a result of the relocation are eligible for benefits for two quarters beyond the time pay into the fund. The burden former employees results in when the business was no longer required to of paying benefits to a relocating business's an increased drain on the funds.
Prior legislative history
S.2756A - 2015-16 - Amend and Recommit to Labor S.2706A - 2013-14 - Referred to Labor S.6045 - 2011-12 - Referred to Labor A.3788 - 2009-10 - Referred to Labor A.3621 - 2007-08 - Referred to Labor
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.