Enacts the "Unemployment Insurance Liability Act of 2014;" requires that employers that are relocated out of New York State continue to contribute to the unemployment insurance fund when former employees of the employer are receiving benefits for two quarters; mandates that employers shall identify all employees being terminated as a result of the relocation and include the amount of weekly wages paid to such individuals as part of the final quarterly payroll report submitted to the department of insurance.
TITLE OF BILL: An act to amend the labor law, in relation to enacting the Unemployment Insurance Liability Act of 2014
PURPOSE OR GENERAL IDEA OF BILL: Amends the labor law to require that employers who have relocated their businesses outside of New York State have continued liability for contributions to the unemployment insurance fund.
SUMMARY OF SPECIFIC PROVISIONS: The bill would require that employers who have relocated out of state remain liable for contributions to the fund for two quartets from the date of relocation. Contributions would be based on the employer's last quarterly report. The bill would also require that a relocating employer identifies all employees being terminated as a result of the relocation and specifies the amount of their weekly wages.
EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER: Amends section 562 of the labor law.
JUSTIFICATION: Because contributions to the unemployment insurance fund are based on quarterly payroll reports, businesses that relocate out of state no longer make contributions to the fund. Still, workers who have lost their jobs as a result of the relocation are eligible for benefits for two quarters beyond the time when the business was no longer required to pay into the fund. The burden of paying benefits to a relocating business's former employees results in an increased drain on the funds.
PRIOR LEGISLATIVE HISTORY: S.6045 - 2011-12 - Referred to labor A.3788 - 2009-10 - Referred to labor A.3621 - 2007-08 - Referred to labor A.7363 - 2005-06 - In Labor Committee A.3870 - 2003-04 - In Labor Committee A.4748 - 2001-02 - In Labor Committee A.2203 - 1999-00 - In Labor Committee A.4709 - 1997-98 - Labor Committee A.3554 1995-Reported from Labor to Ways & Means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 2706--A 2013-2014 Regular Sessions IN SENATE January 23, 2013 ___________Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- recommitted to the Committee on Labor in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the labor law, in relation to enacting the Unemployment Insurance Liability Act of 2014 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Short title. This act shall be known and may be cited as the "Unemployment Insurance Liability Act of 2014". S 2. Legislative findings. The legislature hereby finds and declares that employers that have relocated out of New York state are not required to make scheduled quarterly contributions to the unemployment insurance fund once they have left the state. The legislature further declares that this creates a continuing hard- ship on the fund which threatens its solvency. Therefore, the legislature declares that employer contributions to the unemployment insurance fund shall continue even after the employer has left New York state, where former employees are receiving benefits. S 3. Subdivision 1 of section 562 of the labor law, as amended by chapter 103 of the laws of 1965, is amended to read as follows: 1. Required coverage. (a) Any employer who has once become liable for contributions under this article with respect to persons other than persons employed in personal or domestic service in private homes shall
[cease to be liable as of]REMAIN LIABLE UNTIL the first day of the calendar quarter next following the filing of his written application provided the commissioner finds that the employer has not RELOCATED OUT OF STATE OR, with respect to [such]persons OTHER THAN THOSE EMPLOYED IN PERSONAL OR DOMESTIC SERVICE IN PRIVATE HOMES, paid remuneration ofEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06939-02-4 S. 2706--A 2
three hundred dollars or more in any of the four calendar quarters preceding such day. (b) AN EMPLOYER WHO HAS RELOCATED OUT OF STATE SHALL REMAIN LIABLE FOR CONTRIBUTIONS TO THE FUND FOR TWO QUARTERS FROM THE DATE ON WHICH THE RELOCATION OCCURRED. CONTRIBUTIONS TO THE FUND SHALL BE BASED ON THE FINAL QUARTERLY REPORT AS SUBMITTED. (C) AN EMPLOYER WHO HAS RELOCATED OUT OF STATE SHALL: (I) IDENTIFY ALL EMPLOYEES BEING TERMINATED AS A RESULT OF THE RELO- CATION, AND (II) INCLUDE THE AMOUNT OF WEEKLY WAGES PAID TO SUCH INDIVIDUALS AS PART OF THE FINAL QUARTERLY PAYROLL REPORT SUBMITTED TO THE DEPARTMENT. (D) Any employer who has once become liable for contributions under this article with respect to persons employed in personal or domestic service in a private home shall cease to be liable as of the first day of the calendar quarter next following the filing of his written appli- cation, provided the commissioner finds that the employer has not with respect to such persons paid remuneration in cash of five hundred dollars or more in any of the four calendar quarters preceding such day. S 4. This act shall take effect immediately.