BILL NUMBER: S9420
SPONSOR: RYAN C
 
TITLE OF BILL:
An act to amend the labor law, in relation to securing collective
bargaining agreement validity during a change in operator or ownership
 
PURPOSE:
This legislation amends the labor law to protect the validity of exist-
ing collective bargaining agreements (CBAs) when a utility or similar
facility is transferred to a new operator or owner. It ensures that
labor contracts remain enforceable and that workers are not stripped of
wages, benefits, or job security during transitions in control.
 
SUMMARY OF PROVISIONS:
Section 1 - The bill creates a new Section 706-a of the Labor Law that:
* Requires successor operators and owners to honor all existing CBAs
unless a new agreement is negotiated.
* Mandates written acknowledgment of CBA terms by successor operators or
owners upon acquisition or control transfer.
* Prohibits corporate structures from evading CBA obligations through
overlapping ownership or conflicted leadership between nominally sepa-
rate entities.
* Grants enforcement authority to the Public Employment Relations Board
(PERE), including penalties up to $50,000 per violation and the power to
reinstate CBAs.
* Authorizes courts to award specific performance, back pay, or other
remedies where violations occur.
Section 2 - Severability clause.
Section 3 - Effective date.
 
JUSTIFICATION:
Utility workers and other unionized employees across New York State have
increasingly faced threats to their hard-earned contractual rights when
ownership or operational control of their worksites is transferred. In
many instances, new operators have claimed exemption from pre-existing
CBAs, leading to abrupt changes in wages, work rules, benefits, and even
job loss.
These outcomes are not only unjust, but they also run counter to the
foundational principles of labor stability and industrial peace. Work-
ers who negotiated and relied upon contractual terms in good faith
should not be left defenseless due to corporate restructuring, asset
sales, or management shell games.
This bill closes a dangerous loophole by requiring that successor opera-
tors explicitly accept the terms of valid CBAs and holding affiliated
entities accountable when they attempt to evade obligations through
commingled leadership or artificial separation.
Utility workers and others, this is not theoretical, it is a real and
recurring problem that threatens workforce stability, undermines collec-
tive bargaining, and opens the door to unfair labor practices. This
legislation restores fairness, strengthens accountability, and ensures
that workers are not discarded when control of a facility changes hands.
 
FISCAL IMPACT:
None to the state. Private operators who violate the law may be subject
to penalties.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
EFFECTIVE DATE:
This act shall take effect immediately.