BILL NUMBER: S5140

SPONSOR: PARKER
 
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:

Section 1: Subdivision 6 of section 190 of the labor law, as added by
chapter 548 of the laws 1966, is amended.

Section 2: This act shall take effect immediately.

 
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 independ-
ent 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:

2021-22: S4390 - REFERRED TO LABOR

2019-20: S.6215 - Referred to Labor

2017-18: S.6215 - REFERRED TO

 
LABOR FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.