What's happening
This bill amends the labor law to include certain partners and members of limited liability entities as employers for unemployment insurance purposes.
Why it matters
Expands the definition of “employer” under unemployment insurance law. to explicitly include partners of registered limited liability partnerships (LLPs), members of limited liability companies (LLCs), and members of professional service LLCs—potentially increasing the number of individuals/entities responsible for paying unemployment insurance taxes.
Closes potential loopholes. whereby members or partners in these business structures could previously avoid classification as “employers” for unemployment insurance purposes, helping to ensure more equitable treatment of workers and consistent funding for unemployment benefits.
Specifies a threshold for coverage,. ensuring that very small entities (those with fewer than two persons) are not unintentionally swept into these requirements—potentially protecting sole proprietorships and single-member LLCs from additional regulatory burdens.
Could impact business costs and compliance obligations,. particularly for small and medium-sized partnerships and LLCs, which may now need to budget for unemployment insurance contributions if they weren’t already doing so, possibly affecting how these businesses structure ownership and compensation.
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Who cares
Headline styles
Hold LLCs Liable for Unemployment
Plain English, a few words. Used as the page title.
Sponsors
3 Multi-sponsors
History
- Referred to labor
- Referred to labor
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
32
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. COLTON, COOK, RIVERA -- read once and referred to the Committee on Labor
AN ACT to amend the labor law, in relation to liability under the unemployment insurance law of certain limited liability partnerships and companies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 512 of the labor law is amended by adding a new subdivision 2-a to read as follows:
2-a. For the purposes of this article, the term "employer" includes a partner of a registered limited liability partnership as defined in section two of the partnership law, a member of a limited liability company as defined in subdivision (m) of section one hundred two of the limited liability company law or a member of a professional service limited liability company as defined in subdivision (f) of section twelve hundred one of the limited liability company law; provided, however, that such limited liability partnerships and companies shall not include those which are less than two persons.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01909-01-9
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.