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Senate Bill S5236

2009-2010 Legislative Session

Prohibits bidding on public contract by employer who fled state to avoid paying benefits to employees

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Archive: Last Bill Status - In Senate Committee Labor Committee

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2009-S5236 (ACTIVE) - Details

See Assembly Version of this Bill:
A5261
Current Committee:
Senate Labor
Law Section:
Labor Law
Laws Affected:
Add ยง220-i, Lab L

2009-S5236 (ACTIVE) - Summary

Prohibits employers who avoid payment of employee benefits by relocating outside state from bidding on public contracts for period of two years after due payments are made; provides for the commissioner of labor to promulgate regulations.

2009-S5236 (ACTIVE) - Sponsor Memo

2009-S5236 (ACTIVE) - Bill Text download pdf 

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

                                  5236

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor

AN ACT to amend the labor law, in relation to prohibiting employers  who
  flee  the state and avoid paying benefits to employees from bidding on
  public contracts

  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 section 220-i to
read as follows:
  S 220-I.   CERTAIN OUT  OF  STATE  EMPLOYERS  NOT  TO  BID  ON  PUBLIC
CONTRACTS.    1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN EMPLOYER
WHO TERMINATES THE CONDUCT OF A BUSINESS IN THIS STATE AND WHO RELOCATES
SUCH BUSINESS OR A SUBSTANTIAL PART THEREOF OUTSIDE THE STATE AND AVOIDS
THE PAYMENT OF A BENEFIT TO EMPLOYEES THEREBY SHALL  BE  AND  IS  HEREBY
PROHIBITED  FROM BIDDING ON PUBLIC CONTRACTS OF ANY NATURE IN THIS STATE
FOR AS LONG AS THE FAILURE TO PAY  SUCH  BENEFITS  CONTINUES,  INCLUDING
EXISTING  AND  ACCRUED  MONEYS  DUE, AND FOR AN ADDITIONAL PERIOD OF TWO
YEARS AFTER PAYMENT THEREOF.
  2. AS USED IN SUBDIVISION ONE OF  THIS  SECTION:  (A)  A  "SUBSTANTIAL
PART"  OF  A BUSINESS MEANS THE EMPLOYMENT BY SUCH BUSINESS OF MORE THAN
TWENTY PERCENT OF THE NUMBER EMPLOYED BY THE  BUSINESS  WHILE  OPERATING
WITHIN  THE  STATE  DURING THE YEAR IMMEDIATELY PRECEDING THE RELOCATION
OUTSIDE THE STATE; AND (B) A "BENEFIT" MEANS ANY STATUTORY OR CONTRACTU-
AL RIGHT WHICH AN EMPLOYEE IS PRESENTLY ENTITLED TO BUT WHICH  WOULD  BE
LOST UPON RELOCATION OUTSIDE THE STATE.
  3.  THE  COMMISSIONER SHALL MAINTAIN A CURRENT LIST OF SUCH BUSINESSES
AS MAY HAVE BEEN SUBJECT TO COMPLAINTS OF VIOLATION OF THE PROVISIONS OF
THIS SECTION. SUCH LIST SHALL BE COMPILED UPON VERIFICATION  OF  SUBJECT
COMPLAINTS  AND  CURRENT LISTS SHALL BE MAILED ON A MONTHLY BASIS TO ALL
STATE AGENCIES AND DEPARTMENTS ACCEPTING BIDS FOR PUBLIC WORK.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05706-01-9

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