As the year comes to an end, Governor Andrew M. Cuomo signed into law Assemblyman Charles D. Falls (D-Richmond) legislation (A.8035/S.6469) under (Chapter #701.) The law defines the term "employer" that pays an individual for services performed when the supervision, direction, and control is exercised jointly by multiple employers.
Under current law "employer" is defined and provides conditions for "terms of coverage" but both do not address situations where an individual is paid by one entity but performs services for another entity. This affects many employees who work on behalf of placement agencies or in the bar/restaurant industry. This law will close a loophole in current law that allows employers to avoid unemployment insurance contributions in situations involving multiple entities.
This new law will clarify the aforementioned dilemma in current labor law and will assure that every New Yorker, working to provide for their family, is fairly compensated if they qualify for unemployment insurance, said Assemblyman Charles D. Fall.