What's happening
This bill redefines the criteria for employee versus independent contractor status, making it harder for businesses to classify workers as independent contractors in New York.
Why it matters
Shifts the burden of proof to employers. Businesses must now prove that a worker meets all three strict criteria (freedom from control, work outside the usual business, and independent trade) to classify them as an independent contractor, making misclassification riskier and less likely.
Expands worker protections to more people. By presuming most workers are employees, a broader group gains access to benefits like minimum wage, overtime, unemployment insurance, and workers' compensation—rights that independent contractors do not receive.
Aims to curb abuses in gig and contract work. The bill targets sectors where businesses often rely on independent contractors (e.g., gig economy, delivery, construction), closing loopholes and making it harder for companies to avoid labor law obligations.
Creates legal and financial implications for businesses. Companies may face increased costs related to payroll taxes, benefits, and compliance; failure to properly classify could result in fines, lawsuits, or back-pay liabilities.
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Who cares
Workers classified as independent contractors
The bill would generally treat paid workers as employees under the amended unemployment insurance, hours-of-work, minimum wage and disability benefits provisions unless hiring entities satisfy a three-part test, subject to applicable exclusions.
Businesses that hire independent contractors
Hiring entities would have to demonstrate that workers are free from their control, perform work outside their usual business and operate an independently established trade or business to maintain contractor status under these provisions.
New York State Department of Labor
The bill would add the three-part employee-status test to Labor Law provisions governing unemployment insurance, hours of work and minimum wages.
New York State Workers’ Compensation Board
The bill would expand the definition of employment in the disability benefits law to include paid services unless an exclusion applies or the hiring entity satisfies all three conditions.
Headline styles
Redefine Employee vs. Contractor
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to labor
- Referred to labor
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
866
2025-2026 Regular Sessions
IN ASSEMBLY (Prefiled)
January 8, 2025
Introduced by M. of A. GLICK, DINOWITZ, COLTON, MAGNARELLI, SIMON, REYES, GONZALEZ-ROJAS, BURDICK, GALLAGHER, MAMDANI, RIVERA, MITAYNES, SIMONE, R. CARROLL -- read once and referred to the Committee on Labor
AN ACT to amend the labor law and the workers' compensation law, in relation to the employee status of an individual
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraphs (a) and (b) of subdivision 1 of section 511 of the labor law, as amended by chapter 607 of the laws of 1971, subparagraph 1-a of paragraph (b) as added by chapter 903 of the laws of 1986, subparagraph 1-b of paragraph (b) as added by chapter 418 of the laws of 2010, subparagraph 1-c of paragraph (b) as added by chapter 558 of the laws of 2013, and subparagraph 3 of paragraph (b) as added by chapter 668 of the laws of 1992, are amended to read as follows:
(a) any service under any contract of employment for hire, express or implied, written, or oral; and
(b) (1) any service by a person providing labor or services for remuneration unless the hiring entity demonstrates that all of the following conditions are satisfied:
(i) the person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; and
(ii) the person performs work that is outside the usual course of the hiring entity's business; and
(iii) the person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
(2) for the purposes of this section, any person providing labor or services for remuneration pursuant to subparagraph one of this paragraph
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03045-01-5
shall be considered an employee rather than an independent contractor; and
(c) any service by a person for an employer:
(1) as an agent-driver or commission-driver engaged in distributing meat, vegetable, fruit, or bakery products; beverages other than milk; or laundry or dry-cleaning services; or
(1-a) as a professional musician or a person otherwise engaged in the performing arts, and performing services as such for a television or radio station or network, a film production, a theatre, hotel, restaurant, night club or similar establishment unless, by written contract, such musician or person is stipulated to be an employee of another employer covered by this chapter. "Engaged in the performing arts" shall mean performing services in connection with the production of or performance in any artistic endeavor which requires artistic or technical skill or expertise; or
(1-b) as an employee in the construction industry unless the presumption of employment can be overcome, as provided under section eight hundred sixty-one-c of this chapter; or
(1-c) as an employee in the commercial goods transportation industry unless the presumption of employment can be overcome, as provided under section eight hundred sixty-two-b of this chapter; or
(2) as a traveling or city [salesman] salesperson engaged on a fulltime basis in soliciting orders for merchandise for resale or supplies for use in the purchaser's business operations if the contract of service contemplates that substantially all of such services are to be performed personally by such person; such person does not have a substantial investment in facilities used in connection with the performance of such services, excepting facilities for transportation; and the services are not in the nature of a single transaction which is not part of a continuing relationship with the employer.
(3) as a professional model, where:
(i) the professional model performs modeling services for; or
(ii) consents in writing to the transfer of [his or her] such professional model's exclusive legal right to the use of [his or her] such professional model's name, portrait, picture or image, for advertising purposes or for the purposes of trade, directly to a retail store, a manufacturer, an advertising agency, a photographer, a publishing company or any other such person or entity, which dictates such professional model's assignments, hours of work or performance locations and which compensates such professional model in return for a waiver of [his or her] such professional model's privacy rights enumerated above, unless such services are performed pursuant to a written contract wherein it is stated that the professional model is the employee of another employer covered by this chapter. For purposes of this subparagraph, the term "professional model" means a person who, in the course of [his or her] such person's trade, occupation or profession, performs modeling services. For purposes of this subparagraph, the term "modeling services" means the appearance by a professional model in photographic sessions or the engagement of such model in live, filmed or taped modeling performances for remuneration.
§ 2. Subdivision 3 of section 160 of the labor law, the opening paragraph as amended by chapter 481 of the laws of 2010, is amended to read as follows:
3. a. For all other employees, except those engaged in farm work and those affected by subdivision four of section two hundred twenty of this chapter, eight hours.
b. For the purposes of this subdivision, an individual providing labor or services for remuneration has the status of an employee rather than an independent contractor unless the hiring entity demonstrates all of the following conditions:
(i) The individual is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
(ii) The individual performs work that is outside the usual course of the hiring entity's business.
(iii) The individual is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
c. This subdivision shall not prevent an agreement for overwork at an increased compensation, except upon work by or for the state or a municipal corporation, or by contractors or subcontractors therewith, and except as otherwise provided in this chapter.
§ 3. Subdivision 5 of section 651 of the labor law is amended by adding a new closing paragraph to read as follows:
Unless otherwise excluded by the provisions of this subdivision or by regulations promulgated by the commissioner, an individual providing labor or services for remuneration has the status of an employee rather than an independent contractor unless the hiring entity demonstrates all of the following conditions:
(a) The individual is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
(b) The individual performs work that is outside the usual course of the hiring entity's business.
(c) The individual is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
§ 4. Subdivision 6 of section 201 of the workers' compensation law is amended by adding a new paragraph E to read as follows:
E. (A) The term "employment" includes, unless specifically excluded by a provision of this subdivision, any service by a person providing labor or services for remuneration unless the hiring entity demonstrates that all of the following conditions are satisfied:
(i) the person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; and
(ii) the person performs work that is outside the usual course of the hiring entity's business; and
(iii) the person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
(B) For the purposes of this section, any person providing labor or services for remuneration pursuant to subparagraph (A) of this paragraph shall be considered an employee rather than an independent contractor.
§ 5. 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.