NY State Senate Bill 2023-S3155

Current Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to labor
Jan 30, 2023	referred to labor

2023-S3155 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Add Art 35 §§1010 - 1012, Lab L

2023-S3155 (ACTIVE) - Summary

Establishes the New York state fast food franchisor accountability act to hold fast food restaurants jointly liable for violations of certain laws, orders, rules and regulations relating to employment and worker safety.

2023-S3155 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3155

SPONSOR: BRISPORT
 
TITLE OF BILL:

An act to amend the labor law, in relation to establishing the New York
state fast food franchisor accountability act

 
SUMMARY OF PROVISIONS:

  Section  one  sets  forth the title of the bill as the "New York State
fast food franchisor accountability act."

  Section two adds new article 35 to  the  New  York  State  labor  law,
providing  joint  and  several  liability  for fast food franchisors for
certain labor law violations.

  Section three provides that this act shall take effect immediately.

 
JUSTIFICATION:

This bill would enact the "New York State Fast Food Franchisor  Account-

ability  Act,"  in order to protect fast food workers from certain labor
violations.

According to the Bureau of Labor Statistics, more than 150,000 New York-
ers work in the fast food industry, with an average wage of just fifteen
dollars per hour. Those workers in turn face poor working conditions and
routine violations of employment law. Franchise  companies  wield  large
concentrations  of market power within this sector, contracting out day-
to-day supervision but maintaining extensive operational  control.  They
effectively  set the terms of employment, with little incentive to deter
future violations of workplace law or to ensure that their own  policies
do  not  cause them.   Franchise owners are sometimes explicitly told to
pay their workers less to maintain profitability in the face of franchi-
sors' mandatory pricing, or are forced to discipline employees for  fear
of  contractual  default.  It is hardly surprising that franchise owners
respond to such conditions of intensive surveillance and  narrow  profit
margins by unlawfully chiseling wages and squeezing workers, the primary
cost variable under their control. When violations inevitably occur, the
franchise  owners  cannot  afford  full restitution, while the franchise
companies that are ultimately responsible cannot be held liable  due  to
New York's legal structure that allows them to escape liability.

For  example,  the  New York Office of the Attorney General has investi-
gated complaints of wage theft violations at over seventy Domino's Pizza
locations over the  last  decade,  resulting  in  numerous  class-action
lawsuits  and dozens of settlements with individual franchise locations-
in some cases settlements over one million dollars that  bankrupt  fran-
chise  owners  --  while  the  Domino's  parent company has consistently
escaped joint-employer liability.

This bill would hold fast food restaurant  franchisors  responsible  for
ensuring  that  their franchisees comply with employment laws and worker
protections, including those related to employment discrimination, and a
range of labor regulations and emergency orders. This  bill  would  also
require  that  a fast food restaurant franchisor take responsibility for
ensuring compliance by its franchises,  and  be  jointly  and  severally
liable  for  ensuing  violations,  as  specified, and would provide that
specified laws may be enforced against a fast food restaurant franchisor
to the same extent that they may be enforced against a franchisee.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S3155 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3155
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2023
                                ___________
 
 Introduced  by Sen. BRISPORT -- 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 establishing the New  York
   state fast food franchisor accountability act
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the  "New  York
 state fast food franchisor accountability act".
   §  2.  The  labor law is amended by adding a new article 35 to read as
 follows:
                                ARTICLE 35
          NEW YORK STATE FAST FOOD FRANCHISOR ACCOUNTABILITY ACT
 SECTION 1010. SHORT TITLE.
         1011. DEFINITIONS.
         1012. JOINT LIABILITY FOR FAST FOOD FRANCHISORS.
   § 1010. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "NEW YORK STATE FAST FOOD FRANCHISOR ACCOUNTABILITY ACT".
   § 1011. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "FAST FOOD CHAIN" MEANS A SET OF RESTAURANTS CONSISTING OF FIFTY OR
 MORE  ESTABLISHMENTS  NATIONALLY THAT EITHER SHARE A COMMON BRAND OR ARE
 CHARACTERIZED BY STANDARDIZED OPTIONS FOR DECOR,  MARKETING,  PACKAGING,
 PRODUCTS, AND SERVICES.
   2. "FAST FOOD RESTAURANT" MEANS ANY ESTABLISHMENT IN THE STATE THAT IS
 PART  OF A FAST FOOD CHAIN AND THAT, IN ITS REGULAR BUSINESS OPERATIONS,
 PRIMARILY PROVIDES FOOD OR BEVERAGES ACCORDING TO ALL OF THE FOLLOWING:
   (A) FOR IMMEDIATE CONSUMPTION, EITHER ON OR OFF THE PREMISES;
   (B) TO CUSTOMERS WHO ORDER OR SELECT ITEMS AND PAY BEFORE EATING;
   (C) WITH ITEMS PREPARED  IN  ADVANCE,  INCLUDING  ITEMS  THAT  MAY  BE
 PREPARED IN BULK AND KEPT HOT, OR WITH ITEMS PREPARED OR HEATED QUICKLY;
 AND

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05846-01-3
 S. 3155                             2

 
   (D)  WITH  LIMITED  OR  NO  TABLE  SERVICE.  FOR  THE PURPOSES OF THIS
 SECTION, "TABLE SERVICE" SHALL NOT INCLUDE ORDERS PLACED BY  A  CUSTOMER
 ON AN ELECTRONIC DEVICE.
   3.  "FAST FOOD RESTAURANT FRANCHISEE" MEANS A PERSON OR ENTITY TO WHOM
 A FAST FOOD RESTAURANT FRANCHISE IS GRANTED.
   4. "FAST FOOD RESTAURANT FRANCHISOR" MEANS  A  PERSON  OR  ENTITY  WHO
 GRANTS OR HAS GRANTED A FAST FOOD RESTAURANT FRANCHISE.
   5.  "FAST FOOD RESTAURANT OPERATOR" MEANS A PERSON WHO OPERATES A FAST
 FOOD RESTAURANT.
   6. "FRANCHISE," "FRANCHISEE," AND "FRANCHISOR"  SHALL  HAVE  THE  SAME
 MEANINGS  AS  SET FORTH IN SECTION SIX HUNDRED EIGHTY-ONE OF THE GENERAL
 BUSINESS LAW.
   § 1012. JOINT LIABILITY FOR FAST FOOD  FRANCHISORS.  1.  A  FAST  FOOD
 RESTAURANT  FRANCHISOR  SHALL BE RESPONSIBLE FOR ENSURING THAT ITS FRAN-
 CHISEE COMPLIES WITH THE FOLLOWING APPLICABLE EMPLOYMENT, WORKER SAFETY,
 PUBLIC HEALTH AND SAFETY LAWS AND ORDERS AND ANY  RULES  OR  REGULATIONS
 RELATED THERETO:
   (A) ARTICLE FIFTEEN OF THE EXECUTIVE LAW.
   (B) ALL APPLICABLE SECTIONS OF THIS CHAPTER.
   (C) ALL APPLICABLE SECTIONS OF THE WORKERS' COMPENSATION LAW.
   (D)  ORDERS,  INCLUDING  EMERGENCY AND EXECUTIVE ORDERS, ISSUED BY THE
 GOVERNOR REGARDING EMPLOYMENT STANDARDS OR WORKER SAFETY.
   (E) ORDERS ISSUED BY A COUNTY  OR  MUNICIPALITY  REGARDING  EMPLOYMENT
 STANDARDS OR WORKER SAFETY.
   2.  IF  A FAST FOOD RESTAURANT FRANCHISEE IS LIABLE FOR A VIOLATION OF
 ANY OF THE LAWS OR ORDERS SET FORTH IN SUBDIVISION ONE OF THIS  SECTION,
 OR  ANY  RULES  OR REGULATIONS RELATED THERETO, THE FAST FOOD RESTAURANT
 FRANCHISOR SHALL BE JOINTLY AND SEVERALLY LIABLE FOR  ANY  PENALTIES  OR
 FINES FOR SUCH VIOLATION.
   3.  THE  LAWS AND ORDERS SET FORTH IN SUBDIVISION ONE OF THIS SECTION,
 AND ANY RULES AND REGULATIONS RELATED THERETO, MAY BE ENFORCED AGAINST A
 FAST FOOD RESTAURANT FRANCHISOR TO THE SAME  EXTENT  THAT  THEY  MAY  BE
 ENFORCED AGAINST THE FAST FOOD RESTAURANT FRANCHISEE.
   4.  A  WAIVER OF THIS SECTION, OR ANY AGREEMENT BY A FAST FOOD RESTAU-
 RANT FRANCHISEE TO INDEMNIFY THE FAST  FOOD  RESTAURANT  FRANCHISOR  FOR
 LIABILITY  UNDER THIS SECTION, IS CONTRARY TO PUBLIC POLICY AND SHALL BE
 VOID AND UNENFORCEABLE.
   5. (A) IF THE TERMS OF A FRANCHISE PREVENT  OR  CREATE  A  SUBSTANTIAL
 BARRIER  TO A FAST FOOD RESTAURANT FRANCHISEE'S COMPLIANCE WITH THE LAWS
 AND ORDERS SET FORTH IN SUBDIVISION ONE OF THIS SECTION, AND  ANY  RULES
 AND  REGULATIONS  RELATED  THERETO, OR ANY CHANGES TO SUCH LAWS, ORDERS,
 RULES OR REGULATIONS, INCLUDING THAT THE FRANCHISE DOES NOT PROVIDE  FOR
 SUFFICIENT  FUNDS  TO  ALLOW  THE  FRANCHISEE  TO  COMPLY WITH THE LAWS,
 ORDERS, RULES, AND REGULATIONS, OR ANY CHANGES  TO  SUCH  LAWS,  ORDERS,
 RULES  OR  REGULATIONS,  THE FAST FOOD RESTAURANT FRANCHISEE MAY FILE AN
 ACTION AGAINST THE FAST  FOOD  RESTAURANT  FRANCHISOR  FOR  MONETARY  OR
 INJUNCTIVE RELIEF NECESSARY TO ENSURE COMPLIANCE.
   (B)  THERE  SHALL  BE A REBUTTABLE PRESUMPTION THAT ANY CHANGES IN THE
 TERMS OF A FRANCHISE THAT INCREASE THE COSTS OF  THE  FRANCHISE  TO  THE
 FAST  FOOD RESTAURANT FRANCHISEE CREATE A SUBSTANTIAL BARRIER TO COMPLI-
 ANCE WITH THE LAWS AND ORDERS SET  FORTH  IN  SUBDIVISION  ONE  OF  THIS
 SECTION,  AND ANY RULES AND REGULATIONS RELATING THERETO, OR ANY CHANGES
 TO THEM.
   6. IF A FAST FOOD RESTAURANT FRANCHISEE SHOWS BY  A  PREPONDERANCE  OF
 THE  EVIDENCE  THAT THE TERMS OF ITS FRANCHISE WERE A SUBSTANTIAL FACTOR
 IN CAUSING ANY LIABILITY THE  FRANCHISEE  HAS  ACTUALLY  INCURRED  UNDER
 S. 3155                             3
 
 FEDERAL,  STATE, OR LOCAL LAW, THE FAST FOOD RESTAURANT FRANCHISOR SHALL
 BE JOINTLY AND SEVERALLY LIABLE FOR THE  PORTION  OF  THE  LIABILITY  TO
 WHICH THE TERMS OF THE FRANCHISE CONTRIBUTED.
   § 3. This act shall take effect immediately.

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Senate Bill S3155

Sponsored By

Current Bill Status - In Senate Committee Labor Committee

2023-S3155 (ACTIVE) - Details

2023-S3155 (ACTIVE) - Summary

2023-S3155 (ACTIVE) - Sponsor Memo

2023-S3155 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3155

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Sponsored By

Jabari Brisport

Current Bill Status - In Senate Committee Labor Committee

2023-S3155 (ACTIVE) - Details

2023-S3155 (ACTIVE) - Summary

2023-S3155 (ACTIVE) - Sponsor Memo

2023-S3155 (ACTIVE) - Bill Text download pdf

Comments