Buffalo, NY – Today, Assemblymember Jon D. Rivera announced new legislation that would explicitly deny state economic incentives to employers found to have engaged in unfair labor practices under the National Labor Relations Act (NLRA) or Article 20 of New York State labor law.

The bill would ensure that taxpayer-funded programs meant to spur job creation and economic development do not reward corporations that violate federal and state labor laws or retaliate against workers seeking to organize.

New York State offers a wide range of incentives for businesses, including tax credits for job creation and investment through programs like the Excelsior Jobs Program, property tax exemptions through programs like the Industrial and Commercial Abatement Program (ICAP), and grants for expansion, equipment, and energy efficiency through programs like the Empire State Economic Development Fund (EDF). Other incentives include low-cost power, support for clean energy projects, and programs for specific industries like manufacturing and life sciences.

Under the legislation, any employer found to have violated Article 20 of New York State labor law or the NLRA, which guarantees workers the right to organize, collectively bargain, and engage in protected union activity, would be deemed ineligible for state incentives such as tax credits, property tax abatements, and grants until matters have been resolves at the next annual compliance deadline. 

The bill would also establish a notification system to ensure that appropriate state agencies are made aware when a business has been charged with or found to have committed an unfair labor practice, closing a loophole that currently allows violators to continue receiving economic benefits.

The National Labor Relations Act, signed into law by President Franklin D. Roosevelt in 1935, enshrined fundamental labor protections for American workers, including the right to form and join unions, bargain collectively, and strike. Enforcement of these rights falls to the National Labor Relations Board (NLRB), which investigates unfair labor practice complaints and adjudicates disputes.

Despite these federal protections and similar provisions under New York State labor law there is currently no mechanism in place to prevent companies under NLRB investigation, or even those found guilty of violating labor law, from benefiting from New York State’s extensive economic incentive programs.

In the first quarter of the State fiscal year (SFY) 2025-2026, Empire State Development (ESD) (Microsoft Power BI) awarded over $10 billion in state funds to projects all over the state. However, despite federal protections and similar provisions under New York State labor law, there is currently no mechanism in place to prevent companies under NLRB investigation, or even those found guilty of violating labor law, from benefiting from these extensive economic programs.

Rivera’s proposal seeks to close that loophole by ensuring that state economic development dollars support businesses that respect the law and the workers who drive New York’s economy.

When a grievance is filed under the National Labor Relations Act (NLRA), a worker, union, or employer may submit charges to one of the NLRB’s regional offices alleging an unfair labor practice. The NLRB then conducts an investigation, gathering evidence, interviewing witnesses, and reviewing documents to determine whether the claim has merit. If a violation appears likely, the case proceeds to a hearing before an Administrative Law Judge (ALJ), whose decision can be reviewed by the five-member National Labor Relations Board in Washington, D.C. Parties may then seek enforcement or appeal through the U.S. Court of Appeals.

Although this federal process is comprehensive, it operates independently of state economic oversight. As a result, employers found to have violated labor law can still benefit from New York State incentive programs. Rivera’s bill would address this gap by requiring state agencies to be notified of violations and allowing them to suspend or deny such benefits.

Labor advocates across the state have long called for stronger accountability measures to ensure state subsidies promote fair and lawful employment practices. If enacted, the bill would mark a historic step forward in strengthening worker protections and reaffirming New York’s leadership in advancing labor rights.

Rivera was joined by several labor leaders at the announcement, including Denise Abbott, president of the Western New York Area Labor Federation, AFL-CIO, who said the federation’s legislative team is currently reviewing the legislation.

Assemblymember Jon D. Rivera said, “New York’s economic development programs are designed to create good jobs and strengthen our communities, not to subsidize corporations that trample on workers’ rights. If a business is caught engaging in union-busting or retaliation against workers exercising their legal rights, it should not be rewarded with taxpayer dollars. This legislation is about fairness, accountability, and sending a clear message: New York stands with its workers.”

Gary Bonadonna Jr., Vice President of Workers United Upstate New York and Vermont said, “Labor laws are notoriously weak, leaving workers vulnerable to intimidation and retaliation when they try to organize. This legislation will be a critical tool in the fight for organized labor across New York, giving workers the power to hold employers accountable. It ensures that employers who violate workers’ rights cannot hide behind taxpayer dollars and that public funds go only to businesses that follow the law. By holding employers engaged in unfair labor practices accountable, this bill empowers workers and strengthens the integrity of our economic development programs.

Luke Sills, a former front desk worker at the Downtown Buffalo Hyatt Regency Hotel said, “Workers deserve to be treated with dignity and respect, and they have the fundamental right to organize. For over a year, we have been working to form a union at the Downtown Buffalo Hyatt Regency, only to be met with hostility and unjust firings. That’s why last week, I stood at the Hyatt alongside my coworkers to call for a boycott until management recognizes our union and comes to the table to bargain in good faith. It is unacceptable that employers who engage in union busting and other unfair labor practices continue to receive millions in taxpayer dollars. That’s why I fully support Assemblymember Jon Rivera’s bill, because it is time to hold these employers accountable and ensure that public funds go only to businesses that treat their workers fairly.”

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