Empowers the commissioner of labor to issue stop work orders against employers for misclassification of employees as independent contractors or for providing false, incomplete, or misleading information to an insurance company on the number of employees of such employer.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9175
SPONSOR: Bronson TITLE OF BILL:
An act to amend the labor law, in relation to issuing stop work orders
for misclassification of employees
PURPOSE OR GENERAL IDEA OF BILL:
Prohibits public employers from diminishing the health insurance bene-
fits of public employee retirees.
SUMMARY OF PROVISIONS:
Section 1 amends the labor law to allow the Commissioner of the Depart-
ment of Labor to issue a stop work order to employers who have knowingly
misclassified employees as independent contractors or provided false,
incomplete, or misleading information to an insurance company on the
number of employees of such employer after an investigation. An employer
who receives a stop work order may request a hearing with the Department
of Labor.
Section 2 states the effective date.
JUSTIFICATION:
Both independent contractors and traditional employees play important,
yet different, roles in the workplace and our economy as a whole. As a
result of their differences, employees classified as independent
contractors are not required by law to be paid the minimum wage or over-
time pay. According to the United States Department of Labor (DOL), the
purposeful misclassification of employees as independent contractors is
one of the most serious issues impacting employees, as misclassified
employees are prevented from accessing basic workplace protections, such
as the right to minimum wage.
This legislation will allow for the New York State Department of Labor
to issue.a stop work order to an employer found to have knowingly
misclassified employees as independent contractors or provided false,
incomplete, or misleading information to an insurance company on the
number of employees. This will ensure employees are able to access the
protections entitled to them by law.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:.
This act shall take effect on the one hundred eightieth day after it
shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
9175
IN ASSEMBLY
February 12, 2024
___________
Introduced by M. of A. BRONSON -- read once and referred to the Commit-
tee on Labor
AN ACT to amend the labor law, in relation to issuing stop work orders
for misclassification of employees
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The labor law is amended by adding a new section 45 to read
2 as follows:
3 § 45. Misclassification of employees; stop work orders. 1. If the
4 commissioner determines, after an investigation pursuant to the
5 provisions of this chapter, that an employer has knowingly misclassified
6 employees as independent contractors or provided false, incomplete, or
7 misleading information to an insurance company on the number of employ-
8 ees of such employer, the commissioner shall issue, not later than
9 seventy-two hours after making such determination, a stop work order
10 against the employer requiring the cessation of all business operations
11 of such employer. Such stop work order shall be issued only against the
12 employer found to be in violation and only against the specific place of
13 business or employment for which the violation exists. Such order shall
14 be effective when served upon the employer or at the place of business
15 or employment. A stop work order may be served at a place of business or
16 employment by posting a copy of the stop work order in a conspicuous
17 location at the place of business or employment. Such order shall remain
18 in effect until the commissioner issues an order releasing the stop work
19 order upon a finding by the commissioner that the employer has come into
20 compliance, or after a hearing held pursuant to subdivision two of this
21 section.
22 2. Any employer against which a stop work order is issued pursuant to
23 subdivision one of this section may request a hearing before the depart-
24 ment. Such request shall be made in writing to the commissioner not more
25 than ten days after the issuance of such order. Such hearing shall be
26 conducted in accordance with the provisions of this chapter.
27 3. Stop work orders and any additional penalties imposed under this
28 chapter against a corporation, partnership or sole proprietorship shall
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13916-01-3
A. 9175 2
1 be effective against any successor entity that has one or more of the
2 same principals or officers as the corporation, partnership or sole
3 proprietorship against which the stop work order was issued and are
4 engaged in the same or equivalent trade or activity.
5 4. The commissioner shall promulgate any rules and regulations neces-
6 sary to carry out the provisions of this section.
7 § 2. This act shall take effect on the one hundred eightieth day after
8 it shall have become a law.
