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S6215Senate2017-2018 Session

Clarify Commission Salesperson Rules

Official title

“Relates to clarifying the definition of a commission salesperson”

Sponsor Kevin S. ParkerSD-21Affects Economy
Status
In Senate Committee
Labor
Impact
3/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Labor

What's happening

This bill amends the definition of "commission salesperson" to include requirements such as fixed schedules and employer payroll with benefits.

Why it matters

  1. Narrows who qualifies as a “commission salesperson”. by requiring that individuals must follow a fixed schedule, be on the employer’s payroll, and receive benefits, excluding more independent or flexible commission-based workers from this legal definition.

  2. Affects workplace protections and rights. by ensuring only those commission salespeople who resemble traditional employees (not independent contractors or gig workers) qualify for certain labor law protections, such as timely wage payments under New York’s labor law.

  3. Could impact hiring and compensation structures. in industries like real estate, insurance, and retail, where commission-based roles are common; employers may need to adjust arrangements or clarify employment status to comply with the new definition.

  4. Limits the use of “commission salesperson” status. as a way for employers to avoid providing benefits or full employment status, potentially reducing worker misclassification and increasing access to benefits for those who fit the narrowed definition.

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Who cares

Headline styles

Clarify Commission Salesperson Rules

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Kevin S. Parker

Senator · Senate District 21

No co-sponsors yet.

History

  1. Referred to labor
  2. Referred to labor

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

6215

2017-2018 Regular Sessions

IN SENATE

May 11, 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 clarifying the definition of a "commission salesperson"

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision 6 of section 190 of the labor law, as added by chapter 548 of the laws of 1966, is amended to read as follows:

6. "Commission salesman" means any employee (a) whose principal activity is the selling of any goods, wares, merchandise, services, real estate, securities, insurance or any article or thing and whose earnings are based in whole or in part on commissions, (b) not free to work at his or her own convenience or discretion, (c) constrained to a fixed schedule, (d) not free to engage in other employment and (e) on the employer's payroll and receives fringe benefits. The term "commission salesman" does not include an employee whose principal activity is of a supervisory, managerial, executive or administrative nature.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD11527-01-7

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 clarifying the definition of a "commission salesperson"

Purpose

To clarify the definition of who is a "Commission salesman" under the New York labor law.

Summary of provisions

Amends the following:

Section 1 of the bill amends section 6 of the New York Labor Law § 190, which defines a "commission salesman" as any employee whose (1) principal activity is the selling of any goods, wares, merchandise, services, real estate, securities, insurance or any article or thing and whose earnings are based in whole or in part on commissions, (2) not free to work at his/ her own convenience, (3) constrained to a fixed schedule, (4) not free engage in other employment, and (5) on the employer's payroll and receives fringe benefits

Justification

An increasingly popular business model in the United States is for employers to hire their workers as independent contractors rather than employees. This has created uncertainty over this question: Under what circumstance is it proper for an employer to classify his/ her worker as an independent contractor rather than an employee and vice-versa?

In the state of New York, this inquiry is especially unclear in the salesperson context. The obscurity stems from the two definitions that New York's labor law sets forth defining a salesperson: Whereby, a "commission salesmen" is an employee; yet, a "sales representative" is an independent contractor. These two statutes are seemingly similar in substance yet have subtle differences, which are difficult to decipher when applied under the current statute. However, if an employer misclassifies one of his/her workers, it could mean significant unforeseen financial costs and liability exposure for both the hiring party and the worker. Therefore, the following factors will provide guidance for businesses, employers, and workers.

Legislative history

New Bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.