BILL NUMBER: S7886A
SPONSOR: HARCKHAM
 
TITLE OF BILL:
An act to amend the labor law, in relation to issuing stop-work orders
for misclassification of employees
 
PURPOSE OR GENERAL IDEA OF BILL:
Empowers the commissioner of labor to issue stop work orders against
employers for misclassification of employees as independent contractors
or for providing false, incomplete, or misleading information to an
insurance company on the number of employees of such employer.
 
SUMMARY OF PROVISIONS:
Section 1 amends the labor law by adding new section 45 with 8
subsections on misclassification of employees and stop work orders.
*1.1 vests the Commissioner with the power to issue a stop-work order
upon determination that a company has knowingly misclassified their
employees, and outlines the method for such issuance.
*1.2 gives the employer 72 hours from receipt of the order to come into
compliance and notify the Commissioner, and details the effect of the
order if the employer fails to comply within the 72-hour grace period.
*1.3 provides the employer with the right to contest the stop-work order
within 10 days of issuance.
*1.4 defines the penalties for noncompliance.
*1.5 mandates that employees affected by a stop-work order shall be paid
their regular rate while the order is in effect or the first 10 days the
employee would have been scheduled to work, whichever is less.
*1.6 outlines the effects of the order & penalties on the successors of
a business entity. *1.7 establishes a rebuttable presumption of unlaw-
ful retaliation if an employer in any manner discriminates, retaliates,
or takes any adverse action against any employee within 90 days of the
employee initiating a complaint pursuant to this article.
*1.8 requires the Commissioner to promulgate rules and regulations as
necessary to carry out the provisions of this section.
Section 2 states the effective date.
 
JUSTIFICATION:
Both independent contractors and traditional employees play important,
yet different, roles in the workplace and our economy as a whole. As a
result of their differences, employees classified as independent
contractors are not required by law to be paid the minimum wage or over-
time pay. According to the United States Department of Labor (DOL), the
purposeful misclassification of employees as independent contractors is
one of the most serious issues impacting employees, as misclassified
employees are prevented from accessing basic workplace protections, such
as the right to minimum wage.
This legislation will allow for the New York State Department of Labor
to issue a stop work order to an employer found to have knowingly
misclassified employees as independent contractors or provided false,
incomplete, or misleading information to an insurance company on the
number of employees. This will ensure employees are able to access the
protections entitled to them by law.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.