What's happening
This bill requires employers who relocate out of New York to continue paying unemployment insurance contributions for two quarters after leaving the state.
Why it matters
Discourages sudden employer exits. By requiring continued unemployment insurance contributions after relocating, the bill aims to deter businesses from abruptly leaving New York and shifting the financial burden of laid-off workers onto the state.
Protects the solvency of the unemployment fund. The extra two quarters of contributions from departing employers are intended to stabilize the fund and help ensure there’s enough money to cover claims from workers who lose jobs due to relocation.
Increases employer accountability. The bill mandates that relocating companies must specifically identify all employees terminated as a result of the move and report their wages, increasing transparency and helping the state track the true impact of relocations on employment.
May affect business relocation decisions. By adding a financial obligation for companies leaving the state, this policy could influence how and when businesses choose to relocate, potentially making them think twice about the timing or circumstances of moving operations out of New York.
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Make Employers Pay After Leaving
Plain English, a few words. Used as the page title.
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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.
Hold Employers Liable After Relocation
In Senate Committee · Labor · Sponsor Kevin S. Parker
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
174
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. CAHILL -- read once and referred to the Committee on Labor
AN ACT to amend the labor law, in relation to enacting the Unemployment Insurance Liability Act of 2019
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 2019".
§ 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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00022-01-9
A. 174 2
(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 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.