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S6813Senate2017-2018 SessionSame asA8542

Define Freight Broker Role

Official title

“Defines freight transportation broker”

Sponsor Kathleen A. MarchioneSD-43Affects Finance
Status
In Senate Committee
Finance
Impact
4/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Finance

What's happening

This bill amends labor law to exclude freight transportation brokers from being classified as employers under certain provisions.

Why it matters

  1. Redefines "employer". so that freight transportation brokers are explicitly excluded from being considered employers under this section of labor law, which could affect who is responsible for providing employee protections and benefits.

  2. Clarifies legal responsibilities. by introducing a new definition for "freight transportation broker," distinguishing their role from that of companies directly employing drivers or other transportation workers.

  3. Could impact worker classification and protections. for individuals working with or through freight transportation brokers, potentially limiting access to labor law protections such as minimum wage, overtime, and unemployment insurance for those workers.

  4. May influence business practices and liabilities. within the freight transportation industry by clearly separating brokers from employer obligations, which could affect how companies structure their operations and contracts.

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Who cares

Headline styles

Define Freight Broker Role

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

Sponsors

Primary sponsor
Kathleen A. Marchione

Senator · Senate District 43

Chair, Local Government

No co-sponsors yet.

History

  1. Reported and committed to finance
  2. Print number 6813a
  3. Amend (t) and recommit to labor
  4. Referred to labor
  5. Referred to rules

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.

A8542Assembly

Define Freight Broker Role

In Assembly Committee · Labor · Sponsor Carrie Woerner

Impact 4 · Low0% to pass

Full text

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

STATE OF NEW YORK

6813--A

2017-2018 Regular Sessions

IN SENATE

June 20, 2017

Introduced by Sen. MARCHIONE -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Labor in accordance with Senate Rule 6, sec. 8 -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

AN ACT to amend the labor law, in relation to the definition of a freight transportation broker

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

Section 1. Subdivision 6 of section 862-a of the labor law, as amended by chapter 7 of the laws of 2014, is amended and a new subdivision 7 is added to read as follows:

6. "Employer" means any commercial goods transportation contractor which compensates a person classified as an employee under section eight hundred sixty-two-b of this article. Such term shall not include any freight transportation broker as defined in subdivision seven of this section.

7. "Freight transportation broker" means any sole proprietor, partnership, firm, corporation, limited liability company, association or other legal entity that brokers the transportation of goods for outside thirdparty employers.

§ 2. This act shall take effect immediately.

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

[ ] is old law to be omitted.

LBD11813-08-8

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 the definition of a freight transportation broker

Summary of provisions

Section 1: Excludes freight transportation brokers from the definition of "Employer" in subdivision 6 of section 862-a of the labor law and defines the term "freight transportation broker"

Section 2: Establishes the effective date

Justification

Freight Transportation Brokers are currently being charged premiums for workers' compensation coverage by the state agency for contractor's employees that are employees of third party carriers and not of brokers.

Freight Transportation Brokers hire third-party carriers to transport goods across the state, country, and in many cases internationally. These third-party carriers carry insurance policies on their drivers and the freight transportation broker should not be responsible for the insurance coverage of drivers who are employed by a third-party, the vast majority of whom are already insured.

These brokers contract with separate licensed and insured firms that employ interstate employees and provide proof of insurance to the broth- ers already, and the broker should not have to provide unneeded and duplicate insurance coverage.

This legislation will allow the current insurance coverage of the third- party drivers to be sufficient coverage in NYS without putting an unwanted burden on NYS brokers.

Legislative history

None.

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.