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BILL NUMBER:S4693

TITLE OF BILL:

An act to amend the labor law, in relation to the protection of owner-drivers

SUMMARY OF PROVISIONS:

Section 1 of the bill adds a new º220-i to the the Labor Law providing for the protection of owner-drivers.

JUSTIFICATION:

There is reported to be an increased utilization of owner-drivers as defined in the legislation, in connection with on-site work on state and local public works projects and the delivery and/or removal of materials from such projects.

Such utilization of owner-drivers has had the effect, in many cases, of undermining prevailing wages and overall workplace standards applicable to such work projects.

This provision is being implemented to ensure that appropriate prevailing wage and overall workplace standards are maintained on public work projects for both owner-drivers and all other drivers employed by contractors and subcontractors on state and local public works projects.

PRIOR LEGISLATIVE HISTORY:

2006:    Senate 3rd Reading Calendar. 2007-08: Senate Labor Cmte. 2009-10: S.4177 Labor Cmte.

FISCAL IMPLICATIONS:

Expected to be negligible.

EFFECTIVE DATE:

This act shall take effect immediately.

Text

STATE OF NEW YORK
________________________________________________________________________

4693

2011-2012 Regular Sessions

IN SENATE

April 14, 2011
___________

Introduced  by Sen. FLANAGAN -- 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 the protection  of  owner-
  drivers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The labor law is amended by adding a new section  220-i  to
read as follows:
  S  220-I.  PROTECTION  OF  OWNER-DRIVERS.  1. FOR THE PURPOSES OF THIS
SECTION, OWNER-DRIVER SHALL MEAN A PERSON WHO IS ENGAGED BY A CONTRACTOR
OR SUBCONTRACTOR TO WORK ON-SITE  ON  A  STATE  OR  LOCAL  PUBLIC  WORKS
PROJECT,  OR  TO  DELIVER  AND/OR  REMOVE  MATERIAL  TO OR FROM ANY SUCH
PROJECT, AND WHO UTILIZES A VEHICLE THAT HE OR SHE OWNS  OR  LEASES  FOR
THE PURPOSE OF PERFORMING THIS WORK.
  2.   THE GENERAL CONTRACTOR ON ANY STATE OR LOCAL PUBLIC WORKS PROJECT
SHALL BE RESPONSIBLE AS FOLLOWS WITH RESPECT TO AN OWNER-DRIVER UTILIZED
ON ANY SUCH PROJECT BY THE GENERAL CONTRACTOR DIRECTLY OR INDIRECTLY  BY
ANY  SUBCONTRACTOR  ENGAGED  TO  PERFORM SERVICES AS SET FORTH HEREIN IN
CONNECTION WITH ANY SUCH PROJECT:
  A. THE GENERAL CONTRACTOR SHALL CERTIFY  ON  A  WEEKLY  BASIS  TO  THE
APPLICABLE  CONTRACTING  STATE OR LOCAL AUTHORITY THAT EACH OWNER-DRIVER
HAS RECEIVED A SEPARATE CHECK FOR:
  (I) WAGES;
  (II) TRUCK RENTAL; AND
  (III) FOR ANY REQUIRED FRINGE BENEFITS PAYABLE DIRECTLY TO THE  OWNER-
DRIVER.
  B.  THE  GENERAL  CONTRACTOR  SHALL  CERTIFY  ON A WEEKLY BASIS TO THE
APPLICABLE STATE OR LOCAL AUTHORITY THAT  ANY  FRINGE  BENEFIT  PAYMENTS
REQUIRED TO BE MADE ON BEHALF OF EACH OWNER-DRIVER TO ANY FRINGE BENEFIT
TRUST  FUND  OR  SIMILAR  ENTITY  HAVE  BEEN MADE IN THE TIME AND MANNER
REQUIRED BY CONTRACT OR OTHERWISE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10891-01-1
S. 4693                             2

  C. THE GENERAL CONTRACTOR SHALL CERTIFY  ON  A  WEEKLY  BASIS  TO  THE
APPLICABLE STATE OR LOCAL AUTHORITY THAT EACH OWNER-DRIVER IS COVERED BY
WORKERS' COMPENSATION AND DISABILITY INSURANCE.
  D.  THE GENERAL CONTRACTOR SHALL BE REQUIRED TO MAINTAIN ALL APPROPRI-
ATE RECORDS, INCLUDING BUT NOT LIMITED TO PAY STUBS, AND  OTHER  RECORDS
OF  PAYMENT  AND INSURANCE COVERAGE, THAT FORM THE BASIS FOR THE CERTIF-
ICATIONS REQUIRED HEREIN.
  3. ANY GENERAL CONTRACTOR WHO FAILS TO COMPLY WITH  THE  CERTIFICATION
AND  RECORDKEEPING  REQUIREMENTS  IN  THIS  SECTION SHALL BE BARRED FROM
BIDDING ON AND/OR WORKING ON ANY STATE OR LOCAL PUBLIC WORKS PROJECT, AS
EITHER A CONTRACTOR OR SUBCONTRACTOR, FOR A TWO-YEAR PERIOD.
  4. IN ORDER TO ENSURE THAT APPROPRIATE WORKPLACE STANDARDS  ARE  MAIN-
TAINED  ON  PUBLIC  WORKS PROJECTS, ALL DRIVERS UTILIZED ON PUBLIC WORKS
PROJECTS, WHETHER AN OWNER-DRIVER OR EMPLOYEE, SHALL BE COVERED  BY  AND
SHALL RECEIVE STATE OR LOCAL PREVAILING WAGES APPLICABLE TO ANY STATE OR
LOCAL  PUBLIC  WORKS  PROJECT,  IF THE OWNER-DRIVER IS UTILIZED ON-SITE,
AND/OR DELIVERS OR REMOVES MATERIAL FROM ANY SUCH  SITE  INCLUDING,  BUT
NOT LIMITED TO, THE DELIVERY OF SAND, GRAVEL AND ASPHALT FROM THE SOURCE
FROM WHICH SUCH MATERIALS ARE OBTAINED.
  S 2. This act shall take effect immediately.