A07753 Summary:

BILL NOA07753
 
SAME ASSAME AS S04975
 
SPONSORMorelle
 
COSPNSRFahy, Steck, McDonald, Magnarelli, Stirpe, Brindisi, Cusick
 
MLTSPNSR
 
Amd SS511 & 651, Lab L; amd S2, Work Comp L
 
Excludes certain newspaper delivery persons from the provisions of unemployment, minimum wage and workers' compensation.
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A07753 Actions:

BILL NOA07753
 
05/26/2015referred to labor
06/17/2015reported referred to rules
06/19/2015reported
06/19/2015rules report cal.716
06/19/2015ordered to third reading rules cal.716
06/19/2015passed assembly
06/19/2015delivered to senate
06/19/2015REFERRED TO RULES
06/24/2015SUBSTITUTED FOR S4975
06/24/2015PASSED SENATE
06/24/2015RETURNED TO ASSEMBLY
11/10/2015delivered to governor
11/20/2015vetoed memo.273
11/20/2015tabled
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A07753 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7753
 
SPONSOR: Morelle (MS)
  TITLE OF BILL: An act to amend the labor law and the workers' compen- sation law, in relation to the application of unemployment, the minimum wage and workers' compensation coverage to newspaper delivery persons   PURPOSE: The purpose of the bill is to codify Department of Labor Guidelines regarding the independent contractor if the person's contrac- tual arrangement with the newspaper meets a multi-factor test.   SUMMARY OF PROVISIONS: Section 1: Adds subdivision 23 to section 511 of the labor law. Section 2: Amends subdivision 5 of section 651 of the labor law, as amended by chapter 481 of the laws of 2010. Section 3: Adds new closing paragraph to subdivisions 4 of section 2 of the workers' compensation law. Section 4: Sets the effective date.   JUSTIFICATION: Newspapers and similar publications have a long histo- ry of contracting with independent delivery persons to carry publica- tions to home subscribers and shops. As people have moved from cities into suburban/rural areas, delivery of newspapers by neighborhood chil- dren 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. They published "Guidelines for Determining Worker States: Newspaper and Shopping Guide Publishing Industry." However, the state is no longer following them consistently. This bill sets forth a common sense test, consistent with the current guidelines and with federal standards, by which newspapers, delivery persons and agency staff will be able to easily determine an individ- ual's employment status. Codifying the guidelines issued by the Depart- ment of Labor 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 on the first of January next succeeding the date on which it shall have become a law.
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A07753 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7753
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 26, 2015
                                       ___________
 
        Introduced  by  M. of A. MORELLE, FAHY, STECK, McDONALD -- read once and
          referred to the Committee on Labor
 
        AN ACT to amend the labor law and  the  workers'  compensation  law,  in
          relation  to  the  application  of  unemployment, the minimum wage and
          workers' compensation coverage to newspaper delivery persons
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  511  of the labor law is amended by adding a new
     2  subdivision 23 to read as follows:
     3    23. Newspaper delivery person. The term "employment" shall not include
     4  the services of a person engaged in  the  delivery  or  distribution  of
     5  newspapers, "pennysavers", shopping news or any free distribution publi-
     6  cations (including any services that are directly related to such deliv-
     7  ery  or  distribution), if (a) substantially all of the remuneration for
     8  the performance of the services is related to sales or other output (for
     9  example, fee per-copy or buy/sell) rather than to the  number  of  hours
    10  worked;  (b)  the services are performed pursuant to a written contract;
    11  and (c) the written contract contains provisions evidencing any seven of
    12  the following:
    13    (1) the person is not treated as an employee for federal tax purposes,
    14  and he or she will be issued IRS Form 1099 for federal tax purposes;
    15    (2) the person has the right to determine the sequence of delivery  in
    16  his or her geographic area or route;
    17    (3) the person is not required to attend group meetings;
    18    (4)  the  person  has  the  right  to engage the services of others to
    19  distribute the publication or product without approval of the publishing
    20  company;
    21    (5) the person is not required to submit written reports with  respect
    22  to  time  spent  or  activities  engaged  in  relating  to  distribution
    23  services, other than those for internal circulation  statistics,  audits
    24  or as required by law;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10624-01-5

        A. 7753                             2
 
     1    (6)  the person has the right to increase the number of subscribers or
     2  customers on the route or geographic area, even  though  notice  to  the
     3  publishing company may be required;
     4    (7)  the  person has the right to engage in other business activities,
     5  including the delivery of other newspapers, shopping guides or products;
     6    (8) the person is not identified as representing the publishing compa-
     7  ny by the provision of business cards, uniforms or signs to place on the
     8  delivery person's vehicle;
     9    (9) the person has the ultimate responsibility to  resolve  subscriber
    10  and/or  customer  complaints,  even  though  the  publishing company may
    11  receive and resolve customer complaints and make  appropriate  financial
    12  settlement with the delivery person; or
    13    (10)  the  person  is responsible to provide any needed vehicle and to
    14  pay for all maintenance and insurance on such vehicle.
    15    § 2. Subdivision 5 of section 651 of the  labor  law,  as  amended  by
    16  chapter 481 of the laws of 2010, is amended to read as follows:
    17    5. "Employee" includes any individual employed or permitted to work by
    18  an  employer in any occupation, but shall not include any individual who
    19  is employed or permitted to work: (a) on a casual basis in service as  a
    20  part  time  baby  sitter  in the home of the employer; (b) in labor on a
    21  farm; (c) in a bona  fide  executive,  administrative,  or  professional
    22  capacity; (d) as an outside salesman; (e) as a driver engaged in operat-
    23  ing  a  taxicab;  (f)  as a volunteer, learner or apprentice by a corpo-
    24  ration, unincorporated association, community chest, fund or  foundation
    25  organized  and  operated exclusively for religious, charitable or educa-
    26  tional purposes, no part of the net earnings  of  which  inures  to  the
    27  benefit  of  any private shareholder or individual; (g) as a member of a
    28  religious order, or as a duly ordained, commissioned or licensed  minis-
    29  ter,  priest or rabbi, or as a sexton, or as a christian science reader;
    30  (h) in or for such a religious or charitable institution, which work  is
    31  incidental  to or in return for charitable aid conferred upon such indi-
    32  vidual and not under any express contract of hire; (i) in or for such  a
    33  religious, educational or charitable institution if such individual is a
    34  student;  (j)  in  or  for  such  a religious, educational or charitable
    35  institution if the earning capacity of such individual  is  impaired  by
    36  age  or  by  physical  or  mental  deficiency or injury; (k) in or for a
    37  summer camp or conference of such a religious, educational or charitable
    38  institution for not more than three months  annually;  (l)  as  a  staff
    39  counselor  in  a  children's camp; (m) in or for a college or university
    40  fraternity, sorority, student association  or  faculty  association,  no
    41  part  of  the net earnings of which inures to the benefit of any private
    42  shareholder or individual, and which is recognized by  such  college  or
    43  university,  if such individual is a student; (n) by a federal, state or
    44  municipal government or political subdivision thereof.   The  exclusions
    45  from  the  term  "employee"  contained  in  this subdivision shall be as
    46  defined by regulations of the commissioner; [or] (o) as a volunteer, who
    47  is eighteen years of age or older, at a recreational or amusement  event
    48  run  by  a  business  that operates such events, provided that no single
    49  such event lasts longer than eight consecutive days and no more than one
    50  such event concerning substantially the same subject  matter  occurs  in
    51  any  calendar year; or (p) as a newspaper delivery person as referred to
    52  in subdivision twenty-three of section five hundred eleven of this chap-
    53  ter. [Any such volunteer shall be at least eighteen  years  of  age.]  A
    54  business seeking coverage under [this] paragraph (p) of this subdivision
    55  shall  notify  every volunteer in writing, in language acceptable to the
    56  commissioner, that by volunteering his or her services,  such  volunteer

        A. 7753                             3
 
     1  is waiving his or her right to receive the minimum wage pursuant to this
     2  article.  Such  notice  shall be signed and dated by a representative of
     3  the business and the volunteer and kept on  file  by  the  business  for
     4  thirty-six months.
     5    "Employee"  also includes any individual employed or permitted to work
     6  in any non-teaching capacity by a school district or  board  of  cooper-
     7  ative  educational  services  except that the provisions of sections six
     8  hundred fifty-three through six hundred fifty-nine of this article shall
     9  not be applicable in any such case.
    10    § 3. Subdivision 4 of section 2 of the workers'  compensation  law  is
    11  amended by adding a new closing paragraph to read as follows:
    12    "Employee"  shall  not  include a newspaper delivery person engaged in
    13  the delivery or distribution of newspapers, "pennysavers", shopping news
    14  or any free distribution publications (including any services  that  are
    15  directly related to such delivery or distribution), if (a) substantially
    16  all  of  the remuneration for the performance of the services is related
    17  to sales or other output (for example, fee per-copy or buy/sell)  rather
    18  than  to  the  number  of  hours  worked; (b) the services are performed
    19  pursuant to a written contract; and (c) the  written  contract  contains
    20  provisions evidencing any seven of the following:
    21    (i)  the delivery person is not treated as an employee for federal tax
    22  purposes and such person will be issued IRS Form 1099  for  federal  tax
    23  purposes;
    24    (ii)  the  delivery  person has the right to determine the sequence of
    25  delivery in his or her geographic area or route;
    26    (iii) the delivery person is not required to attend group meetings;
    27    (iv) the delivery person has the  right  to  engage  the  services  of
    28  others  to distribute the publication or product without approval of the
    29  publishing company;
    30    (v) the delivery person is not required to submit written reports with
    31  respect to time spent or activities engaged in relating to  distribution
    32  services,  other  than those for internal circulation statistics, audits
    33  or as required by law;
    34    (vi) the delivery person has the  right  to  increase  the  number  of
    35  subscribers  or  customers  on the route or geographic area, even though
    36  notice to the publishing company may be required;
    37    (vii) the delivery person has the right to engage  in  other  business
    38  activities,  including the delivery of other newspapers, shopping guides
    39  or products;
    40    (viii) the delivery person  is  not  identified  as  representing  the
    41  publishing company by the provision of business cards, uniforms or signs
    42  to place on the delivery person's vehicle;
    43    (ix)  the  delivery  person has the ultimate responsibility to resolve
    44  subscriber and/or customer complaints, even though the publishing compa-
    45  ny may receive and resolve  customer  complaints  and  make  appropriate
    46  financial settlement with the delivery person; or
    47    (x)  the  delivery person is responsible to provide any needed vehicle
    48  and to pay for all maintenance and insurance on such vehicle.
    49    § 4. This act shall take effect on the first of January next  succeed-
    50  ing the date on which it shall have become a law.
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