BILL NUMBER:S4847

TITLE OF BILL:  An act to amend the labor law, in relation to
exclusion of certain services from employment

Purpose:

This bill provides for an exclusion from the definition of the term
employment in the Unemployment Insurance Law for services performed
for a non-profit organization or governmental entity in a
"work-training" or "work-relief' program where the individual
furnishes temporary services to the state or political subdivision in
connection with a recovery from a disaster emergency.

Summary of Provisions:

Section 1: Provides that the term employment shall not include
services performed for a nonprofit organization by an individual in a
work-relief or work-training program assisted or financed in whole or
in part by any federal agency or any agency of the state or political
subdivision thereof pursuant to a declaration of a disaster emergency
by the president, governor or chief executive of a political
subdivision of the state, where the individual furnishes temporary
services to the state or political subdivision thereof in connection
with a recovery from a disaster emergency, provided that no federal
law, rule or regulation specifically mandates unemployment insurance
              

coverage be paid to such individuals in a particular work-relief or
work-training program. This exclusion from the term employment means
that these temporary disaster recovery services shall not be
considered when calculating unemployment contributions or payments
made by a non-profit organization.

Section 2: Provides that the term employment shall not include
services performed for a governmental entity by an individual in a
work-relief or work-training program assisted or financed in whole or
in part by any federal agency or any agency of the state or political
subdivision thereof pursuant to a declaration of a disaster emergency
by the president, governor or chief executive of a political
subdivision of the state, where the individual furnishes temporary
services to the state or political subdivision thereof in connection
with a recovery from a disaster emergency, provided that no federal
law, rule or regulation specifically mandates unemployment insurance
coverage be paid to such individuals in a particular work-relief or
work-training program. This exclusion from the term employment means
that these temporary disaster recovery services shall not be
considered when calculating unemployment contributions or payments.

Section 3: Provides for an immediate effective date to apply to all
individuals hired on or after such date.

Existing Law:

Labor Law sections 563(2) and 565(2) relate to exclusions of certain
services from the term employment under the Unemployment Insurance
Law.

Prior Legislative History:


This is a new bill.

Statement in Support:

The Department of Labor obtained National Emergency grants from the
federal government to provide temporary jobs and training to
individuals in need who assist in disaster recovery. Although Governor
Cuomo directed the Department of Labor to establish these programs
after tropical storms Irene and Lee; Superstorm Sandy and the June
floods that occurred in Central New York, not all localities who need
the assistance of these programs accepted the monies from these grants
because they are concerned that the amount of their unemployment
insurance (UI) contributions will increase when these temporary
workers are no longer needed. This could result in the need to return
NEG funds to the United States Department of Labor.

The United States Department of Labor permits states to adopt laws
that exclude disaster recovery services when calculating unemployment
contributions or payments, if those services are paid for by a
non-profit organization or governmental entity where the services of
the individual are temporarily provided to the State or a locality as
part of an unemployment work-relief or work-training program, assisted
or financed in whole or in part by any federal, state or local agency.

This bill will encourage the employment and training of workers in
need. The bill will also provide needed services to communities while
permitting governmental entities and non-profit organizations to pay
for these services without concern that their budgets will increase
when the services of these temporary workers are no longer needed.

Budget implications:

None.

Local impact:

This bill would have a positive local impact on localities in which a
state of emergency has been declared.

Effective Date:

This act shall take effect immediately and shall apply to all
individuals hired on or after such date.