Senate Bill S6215

                                 BILL NUMBER:  S6215

 TITLE OF BILL :

An act to amend the labor law, in relation to clarifying the
definition of a "commission salesperson"

 PURPOSE :

To clarify the definition of who is a "Commission salesman" under the
New York labor law.

 SUMMARY OF PROVISIONS :

Amends the following:

Section 1 of the bill amends section 6 of the New York Labor Law §
190, which defines a "commission salesman" as any employee whose (1)
principal activity is the selling of any goods, wares, merchandise,
services, real estate, securities, insurance or any article or thing
and whose earnings are based in whole or in part on commissions, (2)
not free to work at his/ her own convenience, (3) constrained to a
fixed schedule, (4) not free engage in other employment, and (5) on
the employer's payroll and receives fringe benefits

 JUSTIFICATION :
              

An increasingly popular business model in the United States is for
employers to hire their workers as independent contractors rather than
employees. This has created uncertainty over this question:  Under
what circumstance is it proper for an employer to classify his/ her
worker as an independent contractor rather than an employee and
vice-versa?

In the state of New York, this inquiry is especially unclear in the
salesperson context. The obscurity stems from the two definitions that
New York's labor law sets forth defining a salesperson: Whereby, a
"commission salesmen" is an employee; yet, a "sales representative" is
an independent contractor. These two statutes are seemingly similar in
substance yet have subtle differences, which are difficult to decipher
when applied under the current statute. However, if an employer
misclassifies one of his/her workers, it could mean significant
unforeseen financial costs and liability exposure for both the hiring
party and the worker. Therefore, the following factors will provide
guidance for businesses, employers, and workers.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.