NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9110A
SPONSOR: Morelle TITLE OF BILL:
An act to amend the labor law and the workers' compensation law, in
relation to the application of unemployment, the minimum wage and work-
ers' compensation coverage to newspaper delivery persons
PURPOSE:
The purpose of the bill is to incorporate into § 511 of the Labor Law
the provisions of the Federal Direct Seller Law, as they apply to a
person engaged in the trade or business of the delivering or distrib-
ution of newspapers or shopping news (including any services directly
related to such trade or business); to exclude from § 651 of the Labor
Law the delivery of newspapers and shopping news to the consumer, to be
consistent with exclusion in the Federal Wage and Hour Law; and to
exclude the delivery of newspapers and shopping news from the provisions
of the Workers' Compensation Law.
SUMMARY OF PROVISIONS:
Section 1: Adds subdivision 23 to section 511 of the labor law in order
to bring New York State law into conformity with the federal Direct
Seller Amendment of the Small Business Job Protection Act of 1996,
thereby preserving the state's Federal Unemployment Tax Act credit.
Section 2: Amends subdivision 16 of section 511 of the labor law in
order to clarify that the provisions of this legislation are not appli-
cable to persons performing commercial goods transportation services
within the meaning of article 25-c of labor law.
Section 3: Amends subdivision 5 of section 651 of the labor law, as
amended by chapter 481 of the laws of 2010 to clarify that the
provisions of this section are not applicable to persons performing
commercial goods transportation services for a commercial goods trans-
portation contractor within the meaning of article 25-c of labor law.
Section 4: Amends subdivision 3 of section 2 of the workers' compen-
sation law, as amended by chapter 392 of the laws of 2008 to clarify
that the provisions of this section are not applicable to persons
performing commercial goods transportation services for a commercial
goods transportation contractor within the meaning of article 25-c of
labor law.
Section 5: Amends subdivision 4 of section 2 of the workers' compen-
sation law, as amended by chapter 558 of the laws of 2013 to clarify
that the provisions of this section are not applicable to persons
performing commercial goods transportation services for a commercial
goods transportation contractor within the meaning of article 25-c of
labor law.
Section 6: Amends subdivision 5 of section 2 of the workers' compen-
sation law, as separately amended by chapters 470 and 903 of the laws of
1986 to clarify that the provisions of this section are not applicable
to persons performing commercial goods transportation services for a
commercial goods transportation contractor within the meaning of article
25-c of labor law.
Section 7: Sets the effective date.
JUSTIFICATION:
Newspapers and similar publications have a long history of contracting
with independent delivery persons to carry publications to home
subscribers and shops. As people have moved from cities into
suburban/rural areas, delivery of newspapers by neighborhood children on
bikes has evolved into delivery by adults in cars.
In 2000 the New York State Department of Labor recognized the need to
provide a standard by which these common contractual relationships
should operate, adopting "Guidelines for Determining Worker Status:
Newspaper and Shopping Guide Publishing Industry." However, the state
ceased to follow them consistently, resulting in uncertainty among news-
papers, state agency officials and delivery persons as to the status of
these relationships. This bill sets forth-a common sense test, consist-
ent with the guidelines and with state and federal law, and incorporat-
ing the provisions of the federal Direct Seller Law, to enable newspa-
pers, delivery persons and agency staff to easily determine an
individual's employment status.
Enactment of this legislation will foster the distribution of news to
New York State residents widely, easily and affordably while providing
delivery persons with the freedom to engage in a form of small business
or self-employment that affords them the freedom from constraints of
traditional employment requirements.
LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS:
None to the state.
EFFECTIVE DATE:
This act shall take effect immediately.
