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A01663 Summary:

A01663 Actions:

A01663 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A1663
 
SPONSOR: Hawley

 
TITLE OF BILL:
 
An act to amend the labor law, in relation to ending the ability of a
striking worker to collect unemployment benefits
 
 
PURPOSE:
 
To remove certain provisions of law that make it possible for a striking
worker to collect unemployment benefits.
 
 
SUMMARY OF PROVISIONS:
 
section 1: Removes language from Section 592 of the Labor Law that
allows a striking worker to collect unemployment benefits if the worker
is still on strike after seven weeks. Also removes language that would
allow a striking worker to collect benefits before the expiration of the
seven weak period if the employer hires a replacement worker. This bill
retains the ability of a striking worker to collect unemployment if he
or she is denied the opportunity to return to work at the conclusion of
a strike.
 
Section 2: Provides an immediate effective date.
 
 
JUSTIFICATION:
 
A strike occurs when an employer and a union fail to come to an agree-
ment on the terms and conditions of employment. A stoppage of work harms
both the employer and the employees. The employer loses productivity and
the employees lose their compensation. The fact that both sides are
impacted negatively by a strike, especially when the strike extends
weeks or months, gives both sides in incentive to return to the negoti-
ating table and negotiate in good faith.
 
Section 592 of the Labor Law interferes with this process in some cases
by allowing a striking employee to collect UI benefits under certain
circumstances. Firstly, it allows workers to collect UI benefits if the
strike extends beyond a seven week period. Secondly, it allows a strik-
ing employee to collect benefits if a "permanent" replacement worker has
been hired. It deems a replacement worker to be permanent. Unless an
employer certifies that the striking worker will be able to return to
employment at the conclusion of the strike.
 
By providing compensation to a striking employee at the expense of the
employer this section of law tilts the scales in negotiations to the
advantage of the union. This bill restores balance in collective
bargaining negotiations by removing the ability of a striking employee
to collect UI benefits unless they are refused the opportunity to return
to employment at the conclusion of the strike.  Like current law, it
allows the employee to collect benefits retroactively in the event he or
she is denied such an opportunity.
 
 
LEGISLATIVE HISTORY:

06/06/2012 - A.8922 - held for consideration in Labor,
06/03/14 held for consideration in labor
05/10/16 held for consideration in labor A3263
 
FISCAL IMPLICATIONS:
 
Negligible
 
 
EFFECTIVE DATE:
Immediately.

A01663 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1663
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 12, 2017
                                       ___________
 
        Introduced by M. of A. HAWLEY -- read once and referred to the Committee
          on Labor
 
        AN  ACT  to  amend the labor law, in relation to ending the ability of a
          striking worker to collect unemployment benefits
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Section 592 of the labor law, as amended by chapter 415 of
     2  the laws of 1983, subdivision 1 as amended by chapter 177 of the laws of
     3  2010, is amended to read as follows:
     4    § 592. Suspension of accumulation of  benefit  rights.  1.  Industrial
     5  controversy.  (a) The accumulation of benefit rights by a claimant shall
     6  be suspended [during a period of seven consecutive weeks beginning with]
     7  the day after such claimant lost his or  her  employment  because  of  a
     8  strike  or  other  industrial controversy except for lockouts, including
     9  concerted activity not authorized or sanctioned  by  the  recognized  or
    10  certified bargaining agent of the claimant, and other concerted activity
    11  conducted  in violation of any existing collective bargaining agreement,
    12  in the establishment in which he or she was employed[, except that bene-
    13  fit rights may be accumulated before the expiration of such seven  weeks
    14  beginning with the day after such strike or other industrial controversy
    15  was terminated].
    16    (b) Benefits shall not be suspended under this section if:
    17    (i)  The employer hires a permanent replacement worker for the employ-
    18  ee's position. A replacement worker shall be presumed to be  [permanent]
    19  temporary  unless  the  employer  [certifies in writing that] denies the
    20  employee [will be able] the opportunity to return to his  or  her  prior
    21  position  upon conclusion of the strike[, in the event the strike termi-
    22  nates prior to the conclusion of the employee's eligibility for  benefit
    23  rights  under  this  chapter]. In the event the employer does not permit
    24  such return [after such certification], the replacement worker shall  be
    25  deemed  to  have  been  a  permanent replacement worker and the employee
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02287-01-7
        A. 1663                             2
 
     1  shall be entitled to recover any benefits lost as a result of the [seven
     2  week] suspension of benefits[, and the department may impose  a  penalty
     3  upon  the employer of up to seven hundred fifty dollars per employee per
     4  week  of  benefits  lost.  The  penalty collected shall be paid into the
     5  unemployment insurance control fund established pursuant to section five
     6  hundred fifty-two-b of this article]; or
     7    (ii) The commissioner determines that the claimant:
     8    (A) is not employed by an employer that is involved in the  industrial
     9  controversy that caused his or her unemployment and is not participating
    10  in the industrial controversy; or
    11    (B) is not in a bargaining unit involved in the industrial controversy
    12  that  caused  his  or  her  unemployment and is not participating in the
    13  industrial controversy.
    14    2. Concurrent payments prohibited. No days of total unemployment shall
    15  be deemed to occur in any week with respect to which or a part of  which
    16  a  claimant  has  received  or is seeking unemployment benefits under an
    17  unemployment compensation law of  any  other  state  or  of  the  United
    18  States,  provided that this provision shall not apply if the appropriate
    19  agency of such other state or of the United  States  finally  determines
    20  that he is not entitled to such unemployment benefits.
    21    3.  Terms  of  suspension.  No  waiting  period may be served during a
    22  suspension period.
    23    The suspension of accumulation of benefit rights shall not  be  termi-
    24  nated  by subsequent employment of the claimant irrespective of when the
    25  claim is filed except as provided in subdivision one and  shall  not  be
    26  confined to a single benefit year.
    27    [A  "week"  as used in subdivision one of this section means any seven
    28  consecutive calendar days.]
    29    § 2. This act shall take effect immediately.