BILL NUMBER: S4878A
SPONSOR: MAYER
 
TITLE OF BILL:
An act to amend the labor law, in relation to notice of eligibility for
unemployment benefits
 
PURPOSE OR GENERAL IDEA OF BILL:
To require employers to provide employees who are terminated or whose
hours are reduced with notice that they may be eligible for unemployment
benefits.
 
SUMMARY OF PROVISIONS:
Section 1 amends section 590 of the labor law by adding a new subdivi-
sion 2 to require employers to provide notice to employees that they may
be eligible for unemployment benefits whenever the employee's scheduled
hours are reduced or the employee's employment is terminated. Such
notice must include the employer's name and registration number and a
contact address for the employer.
Section 2 provides the effective date.
 
JUSTIFICATION:
Many workers, when laid off or subject to a reduction in working hours,
do not realize they are eligible for unemployment assistance. Partic-
ularly in the case of partial unemployment assistance there is a lack of
awareness about eligibility. To compound this issue, employers are
disincentivized from informing their employees about eligibility because
their unemployment insurance payments may increase when employees or
former employees file for unemployment assistance.
In the wake of catastrophic job losses caused by the COVID-19 pandemic,
it has become clearer than ever that underemployed workers need robust
public support mechanisms to weather an economic storm. This legis-
lation will codify and strengthen current regulations which require
employers to notify workers when they lose their job of the availability
of assistance. By requiring employers to inform employees who are laid
off, or who have had their hours reduced, of their potential eligibility
for unemployment assistance, this bill will improve awareness of unem-
ployment insurance.
 
PRIOR LEGISLATIVE HISTORY:
S6785/A9238 (2021-22): Passed Senate; Referred to Labor
 
FISCAL IMPLICATIONS:
Potential for increased unemployment assistance claims.
 
EFFECTIVE DATE:
This act shall take effect 60 days after it shall become a law.

Statutes affected:
S4878: 590 labor law, 195 labor law, 195(6) labor law
S4878A: 590 labor law