Senate Bill S7378

                                 BILL NUMBER:  S7378

 TITLE OF BILL :  An act to amend the workers' compensation law, in
relation to the definition of "employer" for the purposes of
disability benefits

 PURPOSE :

For the purpose of disability benefits, this bill would amend the
definition of "employer".

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 - Amends subdivision 4 of section 201 of the workers'
compensation law, as added by chapter 600 of the laws of 1949.

Section 2 - Effective date

 JUSTIFICATION :

There are a unique set of factors which make Small businesses more
vulnerable and disproportionately impacted by economic changes. This
is why half of all small businesses (identified as those with 50
employees or less) do not survive beyond two years. This is the sound
reasoning behind why small businesses are often times exempted from
initiatives which would have less of an impact on larger businesses.
              

The failure to incorporate this exemption as part of initiatives which
have a direct impact on the State economy and, therefore, indirectly
on small businesses is ill conceived and will hinder both job
retention and creation. This is why both the States of California and
Connecticut, have this 50 employee exemption and why the State of
Massachusetts has an exemption for small businesses with 11 employees
or less.

The newly adopted Family Leave Act will force small businesses to pay
temporary workers when their workers take Family Leave and result in
reduced productivity due to the usual training period associated with
a new position as well as create additional administrative costs due
to the paperwork associated with the employee on leave and the
temporary employee. Small businesses are the backbone of the state
economy and therefore, should receive this exemption that both the
federal government and other States have prudently included.

 PRIOR LEGISLATIVE HISTORY :

New bill

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.