senate Bill S5867

Signed by Governor

Enacts the "New York State Commercial Goods Transportation Industry Fair Play Act"; redefines the definition of "employee"

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 18 / Jun / 2013
    • REFERRED TO RULES
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1569
  • 21 / Jun / 2013
    • PASSED SENATE
  • 21 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 21 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 21 / Jun / 2013
    • SUBSTITUTED FOR A5237B
  • 21 / Jun / 2013
    • ORDERED TO THIRD READING RULES CAL.627
  • 21 / Jun / 2013
    • PASSED ASSEMBLY
  • 21 / Jun / 2013
    • RETURNED TO SENATE
  • 30 / Dec / 2013
    • DELIVERED TO GOVERNOR
  • 10 / Jan / 2014
    • SIGNED CHAP.558
  • 10 / Jan / 2014
    • APPROVAL MEMO.20

Summary

Enacts the "New York State Commercial Goods Transportation Industry Fair Play Act"; redefines the definition of "employee".

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Bill Details

See Assembly Version of this Bill:
A5237B
Versions:
S5867
Legislative Cycle:
2013-2014
Law Section:
Labor Law
Laws Affected:
Add Art 25-C §§862 - 862-e, amd §511, Lab L; amd §2, Work Comp L
Versions Introduced in 2011-2012 Legislative Cycle:
A8997, A8997

Sponsor Memo

BILL NUMBER:S5867

TITLE OF BILL: An act to amend the labor law, in relation to enacting
the "New York state commercial goods transportation industry fair play
act"; and to amend the workers' compensation law, in relation to the
definition of employee

PURPOSE OR GENERAL IDEA OF BILL:

To prevent misclassification of commercial goods transportation services
employees.

SUMMARY OF SPECIFIC PROVISIONS:

This legislation (1) defines presumption of employment in the commercial
goods transportation industry; (2) outlines commercial goods transporta-
tion contractors' obligation to correctly classify employees and to
inform subcontractors, of their obligations regarding employee classi-
fication; (3) defines penalties for contractors and sub-contractors who
violate and willfully violate the provisions of the law; and (4)
protects against employer retaliation.

JUSTIFICATION:

A study conducted by Cornell University's School of Industrial and Labor
Relations found that in New York State between 2002 and 2005, nearly
40,000 employers misclassified more than 700,000 workers - more than 100
of the state's private sector workforce.

Misclassification rates are disproportionately high in the trucking
industry. Port truck drivers and delivery truck drivers (e.g. FedEx and
UPS drivers) are often improperly classified as independent contractors.

Unlike real independent contractors, these workers are subject to strin-
gent behavioral controls and are financially dependent on the company.
Such drivers who functionally operate as employees are classified as
independent contractors and therefore deprived of proper social security
benefits, healthcare, workers' compensation, unemployment benefits,
minimum wage protections, rights to join a union, and the right to a
safe and healthful workplace.

Additionally, as pressures increase to improve environmental conditions
at ports across the United States, truck drivers are being asked to
purchase new, more environmentally friendly trucks. However, with sala-
ries averaging around $29,000, truck drivers cannot afford this ask. By
correctly classifying truck drivers as employees, the burden of purchas-
ing new trucks would be put on the companies; employees would enjoy
their proper rights as intended by the law, and environmental conditions
at ports would improve.

LEGISLATIVE HISTORY:

2012 Session - S. 6267 - Golden 2013 also see S.4589

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

60 days following enactment.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5867

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 18, 2013
                               ___________

Introduced  by  Sens.  SAVINO,  ADDABBO,  AVELLA,  BOYLE, DILAN, GOLDEN,
  HASSELL-THOMPSON, KRUEGER, LATIMER, MARTINS, PERALTA -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Rules

AN  ACT  to  amend  the labor law, in relation to enacting the "New York
  state commercial goods transportation industry fair play act"; and  to
  amend  the workers' compensation law, in relation to the definition of
  employee

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  labor law is amended by adding a new article 25-C to
read as follows:
                               ARTICLE 25-C
       THE NEW YORK STATE COMMERCIAL GOODS TRANSPORTATION INDUSTRY
                              FAIR PLAY ACT
SECTION 862. SHORT TITLE.
        862-A. DEFINITIONS.
        862-B. PRESUMPTION OF EMPLOYMENT IN THE COMMERCIAL GOODS  TRANS-
               PORTATION INDUSTRY.
        862-C. NOTICE  TO PERSONS RECEIVING REMUNERATION FROM COMMERCIAL
               GOODS TRANSPORTATION  CONTRACTORS  AND  COMMERCIAL  GOODS
               TRANSPORTATION SUBCONTRACTORS.
        862-D. VIOLATIONS AND PENALTIES.
        862-E. RETALIATION.
  S  862.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "NEW YORK STATE COMMERCIAL GOODS TRANSPORTATION INDUSTRY  FAIR  PLAY
ACT".
  S 862-A. DEFINITIONS. AS USED IN THIS ARTICLE:
  1. "COMMERCIAL GOODS TRANSPORTATION CONTRACTOR" MEANS ANY SOLE PROPRI-
ETOR, PARTNERSHIP, FIRM, CORPORATION, LIMITED LIABILITY COMPANY, ASSOCI-
ATION  OR  OTHER LEGAL ENTITY PERMITTED BY LAW TO DO BUSINESS WITHIN THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00724-06-3

S. 5867                             2

STATE WHO COMPENSATES COMMERCIAL VEHICLE DRIVERS WHO POSSESSES A  STATE-
ISSUED  COMMERCIAL  DRIVER'S  LICENSE TO TRANSPORT GOODS IN THE STATE OF
NEW YORK.
  2.  "COMMERCIAL  GOODS  TRANSPORTATION  CONTRACTOR" INCLUDES A GENERAL
COMMERCIAL GOODS TRANSPORTATION CONTRACTOR OR A COMMERCIAL GOODS  TRANS-
PORTATION SUBCONTRACTOR.
  3. "COMMERCIAL GOODS TRANSPORTATION SERVICES" MEANS THE TRANSPORTATION
OF GOODS FOR COMPENSATION BY A COMMERCIAL VEHICLE DRIVER WHO POSSESSES A
STATE-ISSUED  COMMERCIAL  DRIVER'S  LICENSE  AND TRANSPORTS GOODS IN THE
STATE OF NEW YORK.
  4. "DEPARTMENT" MEANS THE DEPARTMENT OF LABOR.
  5. "COMMISSIONER" MEANS THE COMMISSIONER OF LABOR.
  6. "EMPLOYER" MEANS ANY  COMMERCIAL  GOODS  TRANSPORTATION  CONTRACTOR
WHICH  COMPENSATES COMMERCIAL VEHICLE DRIVERS WHO POSSESS A STATE-ISSUED
COMMERCIAL DRIVER'S LICENSE TO TRANSPORT GOODS IN THE STATE OF NEW YORK.
  S 862-B. PRESUMPTION OF EMPLOYMENT IN THE COMMERCIAL GOODS TRANSPORTA-
TION INDUSTRY.  1. ANY PERSON PERFORMING COMMERCIAL GOODS TRANSPORTATION
SERVICES FOR A COMMERCIAL GOODS TRANSPORTATION CONTRACTOR SHALL BE CLAS-
SIFIED AS AN EMPLOYEE UNLESS THE PERSON IS A  SEPARATE  BUSINESS  ENTITY
UNDER  SUBDIVISION  TWO OF THIS SECTION OR ALL OF THE FOLLOWING CRITERIA
ARE MET, IN WHICH CASE THE PERSON SHALL BE AN INDEPENDENT CONTRACTOR:
  (A) THE INDIVIDUAL IS FREE FROM CONTROL AND  DIRECTION  IN  PERFORMING
THE JOB, BOTH UNDER HIS OR HER CONTRACT AND IN FACT;
  (B) THE SERVICE MUST BE PERFORMED OUTSIDE THE USUAL COURSE OF BUSINESS
FOR WHICH THE SERVICE IS PERFORMED; AND
  (C)  THE  INDIVIDUAL IS CUSTOMARILY ENGAGED IN AN INDEPENDENTLY ESTAB-
LISHED TRADE, OCCUPATION, PROFESSION, OR BUSINESS THAT IS SIMILAR TO THE
SERVICE AT ISSUE.
  2. A BUSINESS ENTITY,  INCLUDING  ANY  SOLE  PROPRIETOR,  PARTNERSHIP,
CORPORATION  OR  ENTITY  THAT  MAY  BE A COMMERCIAL GOODS TRANSPORTATION
CONTRACTOR UNDER THIS SECTION SHALL BE CONSIDERED  A  SEPARATE  BUSINESS
ENTITY FROM THE COMMERCIAL GOODS TRANSPORTATION CONTRACTOR WHERE ALL THE
FOLLOWING CRITERIA ARE MET:
  (A) THE BUSINESS ENTITY IS PERFORMING THE SERVICE FREE FROM THE DIREC-
TION  OR  CONTROL  OVER  THE  MEANS AND MANNER OF PROVIDING THE SERVICE,
SUBJECT ONLY  TO  THE  RIGHT  OF  THE  COMMERCIAL  GOODS  TRANSPORTATION
CONTRACTOR  FOR  WHOM  THE  SERVICE  IS  PROVIDED TO SPECIFY THE DESIRED
RESULT OR FEDERAL RULE OR REGULATION;
  (B) THE BUSINESS ENTITY IS NOT SUBJECT TO CANCELLATION OR  DESTRUCTION
UPON SEVERANCE OF THE RELATIONSHIP WITH THE COMMERCIAL GOODS TRANSPORTA-
TION CONTRACTOR;
  (C) THE BUSINESS ENTITY HAS A SUBSTANTIAL INVESTMENT OF CAPITAL IN THE
BUSINESS  ENTITY, INCLUDING BUT NOT LIMITED TO ORDINARY TOOLS AND EQUIP-
MENT;
  (D) THE BUSINESS ENTITY OWNS OR LEASES THE CAPITAL GOODS AND GAINS THE
PROFITS AND BEARS THE LOSSES OF THE BUSINESS ENTITY;
  (E) THE BUSINESS ENTITY HAS AN OPTION TO MAKE ITS  SERVICES  AVAILABLE
TO THE GENERAL PUBLIC OR THE BUSINESS COMMUNITY ON A CONTINUING BASIS;
  (F) THE BUSINESS ENTITY INCLUDES SERVICES RENDERED ON A FEDERAL INCOME
TAX SCHEDULE AS AN INDEPENDENT BUSINESS OR PROFESSION;
  (G)  THE  BUSINESS  ENTITY  PERFORMS SERVICES FOR THE COMMERCIAL GOODS
TRANSPORTATION CONTRACTOR PURSUANT TO  A  WRITTEN  CONTRACT,  UNDER  THE
BUSINESS ENTITY'S NAME, SPECIFYING THEIR RELATIONSHIP TO BE AS INDEPEND-
ENT CONTRACTORS OR SEPARATE BUSINESS ENTITIES;
  (H)  WHEN THE SERVICES BEING PROVIDED REQUIRE A LICENSE OR PERMIT, THE
BUSINESS ENTITY PAYS FOR THE LICENSE OR PERMIT IN THE BUSINESS  ENTITY'S

S. 5867                             3

NAME  OR, WHERE PERMITTED BY LAW, PAYS FOR REASONABLE USE OF THE COMMER-
CIAL GOODS TRANSPORTATION CONTRACTOR'S LICENSE OR PERMIT;
  (I) IF NECESSARY, THE BUSINESS ENTITY HIRES ITS OWN EMPLOYEES, SUBJECT
TO APPLICABLE QUALIFICATION REQUIREMENTS OR FEDERAL OR STATE LAWS, RULES
OR  REGULATIONS,  PAYS  THE  EMPLOYEES  WITHOUT  REIMBURSEMENT  FROM THE
COMMERCIAL GOOD TRANSPORTATION CONTRACTOR  AND  REPORTS  THE  EMPLOYEES'
INCOME TO THE INTERNAL REVENUE SERVICE;
  (J)  THE  COMMERCIAL  GOODS TRANSPORTATION CONTRACTOR DOES NOT REQUIRE
THAT THE BUSINESS ENTITY BE REPRESENTED AS AN EMPLOYEE OF THE COMMERCIAL
GOODS TRANSPORTATION CONTRACTOR TO ITS CUSTOMERS; AND
  (K) THE BUSINESS ENTITY HAS THE RIGHT TO PERFORM SIMILAR SERVICES  FOR
OTHERS ON WHATEVER BASIS AND WHENEVER IT CHOOSES.
  3.  THE  FAILURE  TO  WITHHOLD FEDERAL OR STATE INCOME TAXES OR TO PAY
UNEMPLOYMENT COMPENSATION CONTRIBUTIONS OR WORKERS' COMPENSATION  PREMI-
UMS  WITH  RESPECT  TO  AN INDIVIDUAL'S WAGES SHALL NOT BE CONSIDERED IN
MAKING A DETERMINATION UNDER THIS SECTION, EXCEPT AS SET FORTH IN  PARA-
GRAPH (F) OF SUBDIVISION TWO OF THIS SECTION.
  4.  AN  INDIVIDUAL'S  ACT  OF SECURING WORKERS' COMPENSATION INSURANCE
WITH A CARRIER AS A SOLE PROPRIETOR, PARTNERSHIP OR OTHERWISE SHALL  NOT
BE BINDING ON ANY DETERMINATION UNDER THIS SECTION.
  5.  WHEN A BUSINESS ENTITY MEETS THE DEFINITION OF A SEPARATE BUSINESS
ENTITY PURSUANT TO SUBDIVISION TWO OF THIS SECTION, THE  SEPARATE  BUSI-
NESS  ENTITY  WILL  BE  CONSIDERED  A  COMMERCIAL  GOODS  TRANSPORTATION
CONTRACTOR SUBJECT TO ALL THE PROVISIONS OF THIS ARTICLE  IN  REGARD  TO
THE CLASSIFICATION OF INDIVIDUALS PERFORMING SERVICES FOR IT.
  S  862-C.  NOTICE  TO  PERSONS  RECEIVING REMUNERATION FROM COMMERCIAL
GOODS TRANSPORTATION CONTRACTORS  AND  COMMERCIAL  GOODS  TRANSPORTATION
SUBCONTRACTORS.  1.  EVERY  COMMERCIAL  GOODS  TRANSPORTATION CONTRACTOR
SHALL POST IN A PROMINENT AND ACCESSIBLE PLACE ON THE SITE WHERE COMMER-
CIAL GOODS TRANSPORTATION ACTIVITY IS  CONDUCTED  A  LEGIBLE  STATEMENT,
PROVIDED BY THE COMMISSIONER, THAT DESCRIBES THE RESPONSIBILITY OF INDE-
PENDENT  CONTRACTORS TO PAY TAXES REQUIRED BY STATE AND FEDERAL LAW, THE
RIGHTS OF EMPLOYEES TO  WORKERS'  COMPENSATION,  UNEMPLOYMENT  BENEFITS,
MINIMUM   WAGE,   OVERTIME   AND   OTHER  FEDERAL  AND  STATE  WORKPLACE
PROTECTIONS, AND THE PROTECTIONS AGAINST RETALIATION AND  THE  PENALTIES
IN THIS ARTICLE IF THE CONTRACTOR FAILS TO PROPERLY CLASSIFY AN INDIVID-
UAL  AS  AN EMPLOYEE. THIS NOTICE SHALL ALSO CONTAIN CONTACT INFORMATION
FOR INDIVIDUALS TO FILE COMPLAINTS  OR  INQUIRE  WITH  THE  COMMISSIONER
ABOUT  EMPLOYMENT  CLASSIFICATION  STATUS.    THIS  INFORMATION SHALL BE
PROVIDED IN ENGLISH, SPANISH OR OTHER LANGUAGES REQUIRED BY THE  COMMIS-
SIONER.  THE  POSTED STATEMENT SHALL BE CONSTRUCTED OF MATERIALS CAPABLE
OF WITHSTANDING ADVERSE WEATHER CONDITIONS.
  2. WITHIN THIRTY DAYS OF THE  EFFECTIVE  DATE  OF  THIS  ARTICLE,  THE
COMMISSIONER  SHALL  CREATE  THE  NOTICE DESCRIBED IN SUBDIVISION ONE OF
THIS SECTION AND POST THE NOTICE ON THE DEPARTMENT'S WEBSITE  FOR  DOWN-
LOADING BY COMMERCIAL GOODS TRANSPORTATION CONTRACTORS.
  3.    COMMERCIAL  GOODS  TRANSPORTATION  CONTRACTORS  WHO VIOLATE THIS
SECTION SHALL BE SUBJECT TO A CIVIL PENALTY OF UP TO ONE  THOUSAND  FIVE
HUNDRED  DOLLARS  FOR A FIRST VIOLATION, AND UP TO FIVE THOUSAND DOLLARS
FOR A SUBSEQUENT VIOLATION WITHIN A FIVE YEAR PERIOD.
  S 862-D. VIOLATIONS AND PENALTIES. 1. ANY COMMERCIAL GOODS TRANSPORTA-
TION CONTRACTOR WHO WILLFULLY FAILS TO PROPERLY CLASSIFY  AN  INDIVIDUAL
AS  AN  EMPLOYEE  AS PROVIDED UNDER SECTION EIGHT HUNDRED SIXTY-TWO-B OF
THIS ARTICLE SHALL BE  SUBJECT  TO  THE  CIVIL  AND  CRIMINAL  PENALTIES
PROVIDED  UNDER  THIS  SECTION.  THE  CIVIL  PENALTIES SET FORTH IN THIS
SECTION SHALL BE IMPOSED AS FOLLOWS:  BY  THE  COMMISSIONER  WHERE  SUCH

S. 5867                             4

PENALTY  IS  BASED  ON  A VIOLATION OF THIS CHAPTER; BY THE CHAIR OF THE
WORKERS' COMPENSATION BOARD WHERE SUCH PENALTY IS BASED ON  A  VIOLATION
OF  THE  WORKERS'  COMPENSATION LAW; AND BY THE COMMISSIONER OF TAXATION
AND  FINANCE  WHEN  SUCH PENALTY IS BASED ON A VIOLATION OF THE TAX LAW,
PROVIDED THAT NO MORE THAN ONE CIVIL PENALTY UNDER THIS SECTION  MAY  BE
IMPOSED PER EMPLOYEE PER INCIDENT OF MISCLASSIFICATION.
  (A)  THE WORKERS' COMPENSATION BOARD SHALL PROVIDE A COPY OF ANY ORDER
RELATING TO THE MISCLASSIFICATION OF AN EMPLOYEE,  THE  INTENTIONAL  AND
MATERIAL  UNDERPAYMENT  OR  CONCEALMENT  OF  PAYROLL,  OR THE FAILURE TO
SECURE WORKERS' COMPENSATION  IN  THE  COMMERCIAL  GOODS  TRANSPORTATION
INDUSTRY TO THE COMMISSIONER AND COMMISSIONER OF TAXATION AND FINANCE NO
LATER THAN SEVEN DAYS AFTER THE ISSUANCE OF THE ORDER.
  (B)  NOTWITHSTANDING  THE  SECRECY  PROVISIONS  CONTAINED  IN ARTICLES
NINE-A AND TWENTY-TWO OF THE TAX LAW, THE  DEPARTMENT  OF  TAXATION  AND
FINANCE  SHALL PROVIDE A COPY OF ANY ASSESSMENT FOR FAILURE TO PAY BUSI-
NESS, CORPORATE OR PERSONAL INCOME TAX BY AN EMPLOYER IN THE  COMMERCIAL
GOODS TRANSPORTATION INDUSTRY ARISING OUT OF THE MISCLASSIFICATION OF AN
EMPLOYEE  TO  THE  COMMISSIONER  AND  CHAIR OF THE WORKERS' COMPENSATION
BOARD NO LATER THAN SEVEN DAYS AFTER THE ISSUANCE OF THE ASSESSMENT.
  (C) UPON THE ISSUANCE OF AN ORDER OR DETERMINATION BY THE COMMISSIONER
FOR A VIOLATION AND PENALTIES UNDER THIS ARTICLE, THE COMMISSIONER SHALL
PROVIDE A COPY OF THE ORDER TO THE CHAIR OF  THE  WORKERS'  COMPENSATION
BOARD  AND  THE COMMISSIONER OF TAXATION AND FINANCE NO LATER THAN SEVEN
DAYS AFTER THE ISSUANCE OF THE ORDER.
  2. FOR THE PURPOSES OF THIS SECTION,  THE  TERM  "WILLFULLY  VIOLATES"
MEANS  A  COMMERCIAL GOODS TRANSPORTATION CONTRACTOR KNEW OR SHOULD HAVE
KNOWN THAT HIS OR HER CONDUCT WAS PROHIBITED BY THIS SECTION.
  3.  ANY  COMMERCIAL  GOODS  TRANSPORTATION  CONTRACTOR  WHO  WILLFULLY
VIOLATES  SECTION  EIGHT  HUNDRED  SIXTY-TWO-B  OF THIS ARTICLE SHALL BE
SUBJECT TO A CIVIL PENALTY OF UP TO TWENTY-FIVE HUNDRED DOLLARS FOR  THE
FIRST  VIOLATION PER MISCLASSIFIED EMPLOYEE AND TO A CIVIL PENALTY OF UP
TO FIVE THOUSAND DOLLARS FOR EACH SUBSEQUENT VIOLATION PER MISCLASSIFIED
EMPLOYEE WITHIN A FIVE YEAR PERIOD.
  4. IN ADDITION TO CIVIL PENALTIES, THE CRIMINAL PENALTIES IMPOSED ON A
COMMERCIAL GOODS TRANSPORTATION CONTRACTOR WHO  WILLFULLY  VIOLATES  THE
PROVISIONS  OF  THIS  ARTICLE SHALL BE A MISDEMEANOR AND UPON CONVICTION
SHALL BE PUNISHED FOR A FIRST OFFENSE BY IMPRISONMENT FOR NOT MORE  THAN
THIRTY DAYS OR A FINE NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND FOR
A  SUBSEQUENT OFFENSE BY IMPRISONMENT FOR NOT  MORE THAN SIXTY DAYS OR A
FINE NOT TO EXCEED FIFTY THOUSAND DOLLARS.
  5. IF THE COMMERCIAL GOODS TRANSPORTATION CONTRACTOR IS A CORPORATION,
ANY OFFICER OF SUCH CORPORATION OR SHAREHOLDER WHO OWNS OR  CONTROLS  AT
LEAST TEN PERCENT OF THE OUTSTANDING STOCK OF SUCH CORPORATION WHO KNOW-
INGLY  PERMITS  THE  CORPORATION  TO WILLFULLY VIOLATE THE PROVISIONS OF
THIS ARTICLE SHALL ALSO BE IN VIOLATION OF THIS ARTICLE  AND  THE  CIVIL
AND  CRIMINAL  PENALTIES  HEREIN  SHALL  ATTACH  TO  SUCH  OFFICER  UPON
CONVICTION.
  6. ANY COMMERCIAL GOODS TRANSPORTATION  CONTRACTOR  SUBJECT  TO  CIVIL
PENALTIES UNDER THIS ARTICLE SHALL ALSO BE SUBJECT TO ANY OTHER APPLICA-
BLE  PENALTIES  OR REMEDIES PROVIDED BY LAW FOR FAILURE TO PAY ANY OTHER
STATUTORY PAYMENT OR COVERAGE OBLIGATIONS, INCLUDING BUT NOT LIMITED TO,
UNEMPLOYMENT INSURANCE, WORKERS' COMPENSATION  INSURANCE,  OR  BUSINESS,
CORPORATE OR PERSONAL INCOME TAX, AS FOLLOWS:
  (A)  FOR  FAILURE  TO  PAY  UNEMPLOYMENT  INSURANCE TAX, THE PENALTIES
IMPOSED BY SECTION FIVE HUNDRED SEVENTY OF THIS CHAPTER.

S. 5867                             5

  (B) FOR INTENTIONAL AND  MATERIAL  UNDERSTATEMENT  OR  CONCEALMENT  OF
PAYROLL OR FAILURE TO SECURE WORKERS' COMPENSATION INSURANCE, THE PENAL-
TIES IMPOSED BY PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION FIFTY-TWO OF
THE  WORKERS' COMPENSATION LAW, AND FOR FAILURE TO KEEP A TRUE AND ACCU-
RATE  RECORD  PURSUANT TO SECTION ONE HUNDRED THIRTY-ONE OF THE WORKERS'
COMPENSATION LAW, THE PENALTIES OF SECTION ONE HUNDRED THIRTY-ONE OF THE
WORKERS' COMPENSATION LAW.
  (C) FOR FAILURE TO PAY BUSINESS, CORPORATE OR PERSONAL INCOME TAX, THE
PENALTIES IMPOSED BY SECTION SIX HUNDRED EIGHTY-FIVE  AND  ONE  THOUSAND
EIGHTY-FIVE OF THE TAX LAW.
  7.  ANY  COMMERCIAL  GOODS TRANSPORTATION CONTRACTOR OR ANY OFFICER OR
SHAREHOLDER WHO OWNS OR CONTROLS AT LEAST TEN PERCENT OF THE OUTSTANDING
STOCK OF SUCH CORPORATION THAT HAS BEEN CONVICTED OF A MISDEMEANOR SHALL
BE SUBJECT TO DEBARMENT AND BE INELIGIBLE TO  SUBMIT  A  BID  ON  OR  BE
AWARDED  ANY  PUBLIC WORKS CONTRACT WITH THE STATE, ANY MUNICIPAL CORPO-
RATION, PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY OR PUBLIC BODY  FOR
A  PERIOD  OF  UP  TO ONE YEAR FROM THE DATE OF SUCH CONVICTION OR FINAL
DETERMINATION, OR UP TO FIVE  YEARS  IN  THE  EVENT  OF  ANY  SUBSEQUENT
VIOLATION.
  8.  ANY  SUBSTANTIALLY  OWNED  AFFILIATED ENTITY OF A COMMERCIAL GOODS
TRANSPORTATION CONTRACTOR, AS DEFINED BY PARAGRAPH G OF SUBDIVISION FIVE
OF SECTION TWO HUNDRED TWENTY OF THIS CHAPTER, SHALL BE SUBJECT  TO  THE
SAME  CIVIL  PENALTY PROVIDED UNDER THIS ARTICLE FOR A VIOLATION OF SUCH
PROVISION.
  9. ANY PENALTIES IMPOSED UNDER THIS SECTION BY THE COMMISSIONER  SHALL
BE  APPEALED TO THE INDUSTRIAL BOARD OF APPEALS IN ACCORDANCE WITH ARTI-
CLE THREE OF THIS CHAPTER. ANY PENALTIES IMPOSED UNDER THIS  SECTION  BY
THE  WORKERS' COMPENSATION BOARD OR COMMISSIONER OF TAXATION AND FINANCE
SHALL BE APPEALED IN THE SAME MANNER AS THE UNDERLYING VIOLATION.
  10. NOTHING IN THIS SECTION SHALL  LIMIT  THE  AVAILABILITY  OF  OTHER
REMEDIES AT LAW OR IN EQUITY FOR A VIOLATION OF THIS ARTICLE.
  11.  ANY FEE OR PENALTY ASSESSED FOR A VIOLATION OF THIS ARTICLE SHALL
BE DEPOSITED INTO THE DEPARTMENT'S FEE AND PENALTY ACCOUNT.
  S 862-E. RETALIATION. 1. IT IS A VIOLATION  OF  THIS  ARTICLE  FOR  AN
EMPLOYER OR ANY AGENT OF ANY EMPLOYER, TO RETALIATE THROUGH DISCHARGE OR
IN ANY OTHER MANNER AGAINST ANY PERSON IN THE TERMS OF CONDITIONS OF HIS
OR  HER  EMPLOYMENT FOR EXERCISING ANY RIGHTS GRANTED UNDER THIS ARTICLE
FOR:
  (A) MAKING, OR THREATENING  TO  MAKE,  A  COMPLAINT  TO  AN  EMPLOYER,
CO-WORKER  OR TO A PUBLIC BODY THAT RIGHTS GUARANTEED UNDER THIS ARTICLE
HAVE BEEN VIOLATED;
  (B) CAUSING TO BE INSTITUTED ANY PROCEEDING UNDER OR RELATED  TO  THIS
ARTICLE; OR
  (C)  PROVIDING  INFORMATION  TO, OR TESTIFYING BEFORE, ANY PUBLIC BODY
CONDUCTING AN INVESTIGATION, HEARING OR INQUIRY INTO ANY SUCH  VIOLATION
OF  A  LAW, RULE OR REGULATION BY SUCH EMPLOYER. NOTHING IN THIS SECTION
SHALL LIMIT THE  COMMISSIONER'S  AUTHORITY  UNDER  SECTION  TWO  HUNDRED
FIFTEEN OF THIS CHAPTER, OR ANY OTHER STATUTE.
  2. ANY ACT OF RETALIATION UNDER THIS SECTION SHALL SUBJECT AN EMPLOYER
TO  THE  CIVIL PENALTIES UNDER SECTION EIGHT HUNDRED SIXTY-TWO-D OF THIS
ARTICLE, OR TO A PRIVATE CAUSE OF ACTION, OR BOTH.
  S 2. Paragraph (b) of subdivision 1 of section 511 of the labor law is
amended by adding a new subparagraph 1-c to read as follows:
  (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

S. 5867                             6

  S 3. The opening paragraph of subdivision 4 of section 2 of the  work-
ers' compensation law, as amended by chapter 418 of the laws of 2010, is
amended to read as follows:
  "Employee" means a person engaged in one of the occupations enumerated
in section three of this article or who is in the service of an employer
whose  principal business is that of carrying on or conducting a hazard-
ous employment upon the premises or at the plant, or in  the  course  of
his  or  her  employment  away  from  the  plant of his or her employer;
"employee" shall also mean for the purposes of this chapter any individ-
ual performing services in construction for a contractor  who  does  not
overcome  the  presumption of employment as provided under section eight
hundred sixty-one-c of the labor law; "EMPLOYEE" SHALL ALSO MEAN FOR THE
PURPOSES OF THIS CHAPTER  ANY  INDIVIDUAL  PERFORMING  SERVICES  IN  THE
COMMERCIAL  GOODS  TRANSPORTATION INDUSTRY FOR A COMMERCIAL GOODS TRANS-
PORTATION CONTRACTOR WHO DOES NOT OVERCOME THE PRESUMPTION OF EMPLOYMENT
AS PROVIDED UNDER SECTION EIGHT HUNDRED SIXTY-TWO-B OF  THE  LABOR  LAW;
"employee"  shall  also  mean  for  the  purposes  of this chapter civil
defense volunteers who are personnel of volunteer agencies sponsored  or
authorized  by  a  local  office  under regulations of the civil defense
commission, to the extent of the  provisions  of  groups  seventeen  and
nineteen;  "employee"  shall  at the election of a municipal corporation
made pursuant to local law duly enacted also mean a member of an  auxil-
iary  police  organization authorized by local law; and for the purposes
of this chapter only a newspaper carrier under the age of eighteen years
as defined in section thirty-two hundred twenty-eight of  the  education
law,  and  shall  not  include  domestic  servants except as provided in
section three of this chapter, and except where the employer has elected
to bring such employees  under  the  law  by  securing  compensation  in
accordance  with  the  terms  of section fifty of this chapter. The term
"employee" shall not include persons who are  members  of  a  supervised
amateur  athletic activity operated on a non-profit basis, provided that
said members are not also otherwise engaged or employed by  any  person,
firm  or  corporation participating in said athletic activity, nor shall
it include the spouse or minor child of an  employer  who  is  a  farmer
unless  the  services  of such spouse or minor child shall be engaged by
said employer under an express contract of hire nor shall it include  an
executive  officer  of  a corporation who at all times during the period
involved owns all of the issued and outstanding stock of the corporation
and holds all of the offices pursuant to paragraph (e) of section  seven
hundred  fifteen  of the business corporation law or two executive offi-
cers of a corporation who  at  all  times  during  the  period  involved
between  them own all of the issued and outstanding stock of such corpo-
ration and hold all such offices except as provided in  subdivision  six
of  section  fifty-four  of  this  chapter provided, however, that where
there are two executive officers of a corporation each officer must  own
at least one share of stock, nor shall it include a self-employed person
or  a partner of a partnership as defined in section ten of the partner-
ship law who is not covered under a compensation insurance contract or a
certificate of  self-insurance  as  provided  in  subdivision  eight  of
section  fifty-four  of this chapter, nor shall it include farm laborers
except as provided in group fourteen-b of section three of this chapter.
If a farm labor contractor recruits or supplies farm laborers  for  work
on  a farm, such farm laborers shall for the purposes of this chapter be
deemed to be employees of the owner or lessee of such farm.    The  term
"employee"  shall  not  include  baby  sitters as defined in subdivision
three of section one hundred thirty-one and subdivision three of section

S. 5867                             7

one hundred thirty-two of the labor law or minors fourteen years of  age
or  over engaged in casual employment consisting of yard work and house-
hold chores in and about a one family owner-occupied  residence  or  the
premises of a non-profit, non-commercial organization, not involving the
use  of  power-driven  machinery.  The term "employee" shall not include
persons engaged by the owner in casual  employment  consisting  of  yard
work,  household chores and making repairs to or painting in and about a
one-family owner-occupied  residence.  The  term  "employee"  shall  not
include the services of a licensed real estate broker or sales associate
if  it be proven that (a) substantially all of the remuneration (whether
or not paid in cash) for the services performed by such broker or  sales
associate  is  directly  related to sales or other output (including the
performance of services) rather than to the number of hours worked;  (b)
the  services  performed  by the broker or sales associate are performed
pursuant to a written contract executed between  such  broker  or  sales
associate  and the person for whom the services are performed within the
past twelve to fifteen months; and (c) the written contract provided for
in paragraph (b) of this subdivision was not executed under  duress  and
contains the following provisions:
  S  4.  Notwithstanding any other provision of law to the contrary, the
provisions of section 862-b of the labor law, as added by section one of
this act, shall apply to and be utilized for  all  determinations  of  a
commercial  goods transportation industry individual's employment status
under the labor law and the workers' compensation law, but not  the  tax
law.
  S  5.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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