Exempts certain participants of a supervised collegiate summer baseball league from definition of employee for purposes of workers' compensation coverage.
Ayes (36): Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Farley, Felder, Flanagan, Gallivan, Griffo, Grisanti, Hannon, Klein, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Nozzolio, O'Mara, Ranzenhofer, Ritchie, Robach, Sampson, Seward, Skelos, Smith, Valesky, Young, Zeldin
Nays (23): Addabbo, Avella, Dilan, Gianaris, Gipson, Hassell-Thomps, Hoylman, Kennedy, Krueger, Latimer, Montgomery, O'Brien, Parker, Peralta, Perkins, Rivera, Sanders, Savino, Serrano, Squadron, Stavisky, Stewart-Cousins, Tkaczyk
Excused (2): Espaillat, Golden
TITLE OF BILL: An act to amend the insurance law and the workers' compensation law, in relation to exempting members of supervised collegiate summer baseball leagues from the definition of employees for purposes of workers' compensation insurance
PURPOSE: To exempt collegiate summer baseball leagues from workers' compensation requirements, except those deemed to be employees pursuant to the National Labor Relations Act
SUMMARY OF PROVISIONS: Section 1 of the bill amends section 3443-a of the insurance law to provide that an insurer shall not be required to provide coverage to members of collegiate summer baseball leagues operating on a for-profit basis, except those players determined to be employees pursuant to the National Labor Relations Act
Section 2 of the bill amends section 2 (4) of the workers' compensation law to provide an exemption for members of supervised collegiate summer baseball leagues operating on a for-profit basis, except those players determined to be employees pursuant to the National Labor Relations Act
EXISTING LAW: Currently, section 2 (4) of the workers' compensation law provides an exemption for all supervised amateur athletic activities that are operated on a non-profit basis
JUSTIFICATION: Currently, the workers' compensation law provides an exemption for members of supervised amateur athletic activities that are operated on a non-profit basis However, the current statute is unclear as to the treatment of amateur athletic activities that are operated on a for-profit basis. The State Insurance Fund has recently interpreted the law to require summer collegiate baseball league teams to pay worker's compensation insurance for their players as "employees."
Players do not receive any compensation for joining a collegiate summer baseball league and, as such, should not be considered employees In fact, each of the players on these teams is currently prohibited by the NCAA, or similar collegiate regulatory agency, from receiving any type of monetary payment, or other form of financial compensation Players join summer collegiate baseball teams for baseball instruction by highly qualified coaches, to give them an opportunity to hone their skills for the future playing seasons The present interpretation of the law by the State Insurance Fund is analogous to requiring children who pay to come to a summer camp to be covered by worker's compensation insurance No collegiate league player has ever filed a worker's compensation claim with the State Insurance Fund and could not do so because, currently, it would impact his or her eligibility under NCAA regulations Per the NCAA regulations, student-athletes are not considered to be employees However, in the event that the National Labor Relations Board deems these collegiate level players to be employees at some point in the future, the legislation does provide an exception
Requiring the teams to pay worker's compensation insurance will lead to financial hardships, as most are not highly profitable to begin
with It may cause a number of them to relocate to different states, or to cease doing business altogether This modification of the law is intended to encourage the further development of summer collegiate baseball teams, which contribute significantly to economic development and tourism activities across the state
LEGISLATIVE HISTORY: New bill
FISCAL IMPLICATIONS: None
EFFECTIVE DATE: Immediately
STATE OF NEW YORK ________________________________________________________________________ 6646--A IN SENATE February 21, 2014 ___________Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law and the workers' compensation law, in relation to exempting members of supervised collegiate summer baseball leagues from the definition of employees for purposes of workers' compensation insurance THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The insurance law is amended by adding a new section 3443-a to read as follows: S 3443-A. SUPERVISED COLLEGIATE SUMMER BASEBALL LEAGUES. AMATEUR, UNPAID, COLLEGIATE PLAYERS, EXCEPT THOSE DETERMINED TO BE EMPLOYEES PURSUANT TO THE NATIONAL LABOR RELATIONS ACT, IN A SUPERVISED COLLEGIATE SUMMER BASEBALL LEAGUE OPERATED ON A FOR-PROFIT BASIS SHALL BE EXEMPT FROM THE DEFINITION OF EMPLOYEE PURSUANT TO SUBDIVISION FOUR OF SECTION TWO OF THE WORKERS' COMPENSATION LAW. AS SUCH, AN INSURER ISSUING A WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE POLICY SHALL NOT BE REQUIRED TO PROVIDE COVERAGE TO AMATEUR, UNPAID, COLLEGIATE PLAY- ERS, EXCEPT THOSE DETERMINED TO BE EMPLOYEES PURSUANT TO THE NATIONAL LABOR RELATIONS ACT, IN SAID COLLEGIATE SUMMER BASEBALL LEAGUE. S 2. The opening paragraph of subdivision 4 of section 2 of the work- ers' compensation law, as amended by chapter 558 of the laws of 2013, is amended to read as follows: "Employee" means a person engaged in one of the occupations enumerated in section three of this article or who is in the service of an employer whose principal business is that of carrying on or conducting a hazard- ous employment upon the premises or at the plant, or in the course of his or her employment away from the plant of his or her employer; "employee" shall also mean for the purposes of this chapter any individ- ual performing services in construction for a contractor who does not overcome the presumption of employment as provided under section eight hundred sixty-one-c of the labor law; "employee" shall also mean for theEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13831-02-4 S. 6646--A 2
purposes of this chapter any individual performing services in the commercial goods transportation industry for a commercial goods trans- portation contractor who does not overcome the presumption of employment as provided under section eight hundred sixty-two-b of the labor law; "employee" shall also mean for the purposes of this chapter civil defense volunteers who are personnel of volunteer agencies sponsored or authorized by a local office under regulations of the civil defense commission, to the extent of the provisions of groups seventeen and nineteen; "employee" shall at the election of a municipal corporation made pursuant to local law duly enacted also mean a member of an auxil- iary police organization authorized by local law; and for the purposes of this chapter only a newspaper carrier under the age of eighteen years as defined in section thirty-two hundred twenty-eight of the education law, and shall not include domestic servants except as provided in section three of this
[chapter]ARTICLE, and except where the employer has elected to bring such employees under the law by securing compen- sation in accordance with the terms of section fifty of this chapter. The term "employee" shall not include persons who are members of a supervised amateur athletic activity operated on a non-profit basis, OR PERSONS WHO ARE AMATEUR, UNPAID PLAYERS IN A SUPERVISED COLLEGIATE SUMMER BASEBALL LEAGUE OPERATED ON A FOR-PROFIT BASIS, EXCEPT THOSE AMATEUR, UNPAID PLAYERS IN A SUPERVISED COLLEGIATE SUMMER BASEBALL LEAG- UE OPERATED ON A FOR-PROFIT BASIS WHO ARE DETERMINED TO BE EMPLOYEES PURSUANT TO THE NATIONAL LABOR RELATIONS ACT, provided that said [members]PERSONS are not also otherwise engaged or employed by any person, firm or corporation participating in said athletic activity OR COLLEGIATE SUMMER BASEBALL LEAGUE, nor shall it include the spouse or minor child of an employer who is a farmer unless the services of such spouse or minor child shall be engaged by said employer under an express contract of hire nor shall it include an executive officer of a corpo- ration who at all times during the period involved owns all of the issued and outstanding stock of the corporation and holds all of the offices pursuant to paragraph (e) of section seven hundred fifteen of the business corporation law or two executive officers of a corporation who at all times during the period involved between them own all of the issued and outstanding stock of such corporation and hold all such offices except as provided in subdivision six of section fifty-four of this chapter provided, however, that where there are two executive offi- cers of a corporation each officer must own at least one share of stock, nor shall it include a self-employed person or a partner of a partner- ship as defined in section ten of the partnership law who is not covered under a compensation insurance contract or a certificate of self-insu- rance as provided in subdivision eight of section fifty-four of this chapter, nor shall it include farm laborers except as provided in group fourteen-b of section three of this [chapter]ARTICLE. If a farm labor contractor recruits or supplies farm laborers for work on a farm, such farm laborers shall for the purposes of this chapter be deemed to be employees of the owner or lessee of such farm. The term "employee" shall not include baby sitters as defined in subdivision three of section one hundred thirty-one and subdivision three of section one hundred thirty- two of the labor law or minors fourteen years of age or over engaged in casual employment consisting of yard work and household chores in and about a one family owner-occupied residence or the premises of a non- profit, non-commercial organization, not involving the use of power-dri- ven machinery. The term "employee" shall not include persons engaged by the owner in casual employment consisting of yard work, household choresS. 6646--A 3
and making repairs to or painting in and about a one-family owner-occu- pied residence. The term "employee" shall not include the services of a licensed real estate broker or sales associate if it be proven that (a) substantially all of the remuneration (whether or not paid in cash) for the services performed by such broker or sales associate is directly related to sales or other output (including the performance of services) rather than to the number of hours worked; (b) the services performed by the broker or sales associate are performed pursuant to a written contract executed between such broker or sales associate and the person for whom the services are performed within the past twelve to fifteen months; and (c) the written contract provided for in paragraph (b) of this subdivision was not executed under duress and contains the follow- ing provisions: S 3. This act shall take effect immediately.