Bill Text: NY S05617 | 2023-2024 | General Assembly | Introduced


Bill Title: Removes the exclusion of part-time employees from certain definitions relating to employment and expanding the definition of employer; removes certain exclusions for employer notice requirements for the closing of a facility; removes the discretionary reduction of penalties for employers for certain acts or omissions concerning notice requirements for mass layoffs, relocations or employment loss; removes the maximum time period for determining back pay and other liabilities for certain employees who experience employment loss; allows the attorney general to take certain action to assist certain employees in receiving back pay and other liabilities; requires employers to pay severance to employees when there is a plant closing, relocation, or mass layoff.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced) 2024-01-03 - REFERRED TO LABOR [S05617 Detail]

Download: New_York-2023-S05617-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          5617

                               2023-2024 Regular Sessions

                    IN SENATE

                                      March 8, 2023
                                       ___________

        Introduced  by  Sens.  MAYER,  CLEARE, COMRIE, GOUNARDES, HOYLMAN-SIGAL,
          JACKSON, KENNEDY, MAY, MYRIE,  RAMOS,  SEPULVEDA  --  read  twice  and
          ordered  printed, and when printed to be committed to the Committee on
          Labor

        AN ACT to amend the labor law, in relation to removing the exclusion  of
          part-time  employees  from  certain definitions relating to employment
          and expanding the definition of employer; removing certain  exclusions
          for employer notice requirements for the closing of a facility; remov-
          ing the discretionary reduction of penalties for employers for certain
          acts  or  omissions  concerning  notice requirements for mass layoffs,
          relocations or employment loss; removing the maximum time  period  for
          determining   back pay and other liabilities for certain employees who
          experience employment loss; allowing  the  attorney  general  to  take
          certain  action  to assist certain employees in receiving back pay and
          other liabilities; requiring employers to pay severance  to  employees
          when  there  is  a  plant  closing, relocation, or mass layoff; and to
          repeal certain provisions of such law relating thereto

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Section 860-a of the labor law, as added by chapter 475 of
     2  the laws of 2008, is amended to read as follows:
     3    § 860-a. Definitions. As used in this  article,  the  following  terms
     4  shall have the following meanings:
     5    1. "Affected employees" means employees who may reasonably be expected
     6  to  experience an employment loss as a consequence of a proposed [plant]
     7  facility closing or mass layoff by their employer.
     8    2. "Affiliate" means a person that directly, or indirectly through one
     9  or more intermediaries, controls, or  is  controlled  by,  or  is  under
    10  common control with, a specified person.
    11    3.  "Associate", when used to indicate a relationship with any person,
    12  means:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01691-02-3

        S. 5617                             2

     1    (a) any entity of which such person is an officer or  partner  or  is,
     2  directly  or  indirectly, the beneficial owner of ten percent or more of
     3  any class of voting securities;
     4    (b)  any  trust or other estate in which such person has a substantial
     5  beneficial interest or as to which such person serves as trustee or in a
     6  similar fiduciary capacity; and
     7    (c) any relative or spouse of such person, or  any  relative  of  such
     8  spouse, who has the same home as such person.
     9    4. "Beneficial owner", when used with respect to any securities, means
    10  a person:
    11    (a)  that,  individually  or  with or through any of its affiliates or
    12  associates, beneficially owns such securities, directly  or  indirectly;
    13  or
    14    (b)  that,  individually  or  with or through any of its affiliates or
    15  associates, has (i) the right to acquire such securities,  whether  such
    16  right  is  exercisable  immediately  or  only after the passage of time,
    17  pursuant to any agreement, arrangement or understanding, whether or  not
    18  in  writing, or upon the exercise of conversion rights, exchange rights,
    19  warrants or options, or otherwise; or (ii) the right to vote such  secu-
    20  rities  pursuant to any agreement, arrangement or understanding, whether
    21  or not in writing; provided, however, that a person shall not be  deemed
    22  the  beneficial  owner  of any securities under this subparagraph if the
    23  agreement, arrangement or understanding  to  vote  such  securities  (1)
    24  arises  solely  from a revocable proxy or consent given in response to a
    25  proxy or consent solicitation made in  accordance  with  the  applicable
    26  rules and regulations under the Exchange Act and (2) is not then report-
    27  able  on  a  Schedule  13D  under the Exchange Act, or any comparable or
    28  successor report; or
    29    (c) that has any agreement, arrangement or understanding,  whether  or
    30  not  in  writing,  for the purpose of acquiring, holding, voting, except
    31  voting pursuant to a revocable proxy or consent as described in subpara-
    32  graph (ii) of paragraph (b) of this subdivision, or  disposing  of  such
    33  securities with any other person that beneficially owns, or whose affil-
    34  iates or associates beneficially own, directly or indirectly, such secu-
    35  rities.
    36    5.  "Control",  including the terms "controlling", "controlled by" and
    37  "under common control with", means the possession, directly or indirect-
    38  ly, of the power to direct or cause the direction of (a) the  management
    39  and policies of a person, (b) the operation of a person, or (c) substan-
    40  tially  all  of the assets of a person, whether through the ownership of
    41  voting securities, by contract,  or  otherwise.  A  person's  beneficial
    42  ownership of ten percent or more of an entity's outstanding voting secu-
    43  rities  shall  create a presumption that such person has control of such
    44  entity.  Notwithstanding the foregoing, a person shall not be deemed  to
    45  have  control  of  an  entity if such person holds voting securities, in
    46  good faith and not for the purpose of circumventing this section, as  an
    47  agent, bank, broker, nominee, custodian or trustee for one or more bene-
    48  ficial owners who do not individually or as a group have control of such
    49  entity.
    50    6. "Employment loss" means:
    51    (a)  an  employment  termination,  other  than  a discharge for cause,
    52  voluntary departure other than in anticipation of an announced  facility
    53  closing or mass layoff, or retirement;
    54    (b) a mass layoff exceeding [six] three months;
    55    (c)  a  reduction  in  hours of work of more than fifty percent during
    56  each month of any consecutive [six-month] three-month period.

        S. 5617                             3

     1    "Employment loss" shall not result under circumstances where a [plant]
     2  facility closing or mass layoff is  the  result  of  the  relocation  or
     3  consolidation  of part or all of the employer's business and, before the
     4  closing or mass layoff, the employer offers to transfer the employee  to
     5  a  different  site  of employment within a reasonable commuting distance
     6  with no more than a [six-month] three-month break in employment, or  the
     7  employer  offers  to  transfer the employee to any other site of employ-
     8  ment, regardless of distance, with no more  than  a  [six-month]  three-
     9  month  break  in employment, and the employee accepts within thirty days
    10  of the offer or of the closing or mass layoff, whichever is later.
    11    [3.] 7. "Employer" means any business enterprise that employs fifty or
    12  more employees[, excluding part-time employees, or fifty or more employ-
    13  ees that work in the aggregate at least two thousand  hours  per  week].
    14  "Employer"  shall include any affiliate of an employer. "Employer" shall
    15  not include the federal or state government or any  of  their  political
    16  subdivisions,  including  any  unit  of  local  government or any school
    17  district.
    18    [4.] 8. "Exchange Act" means the act of Congress known as the  Securi-
    19  ties  Exchange  Act  of  1934,  as the same has been or hereafter may be
    20  amended from time to time.
    21    9. "Mass layoff" means a reduction in force which:
    22    (a) is not the result of a [plant] facility closing; and
    23    (b) results in an employment loss for those working at or reporting to
    24  a single site of employment during any thirty-day period for[:
    25    (i) at least thirty-three percent of the  employees  (excluding  part-
    26  time employees); and
    27    (ii)  at  least twenty-five employees (excluding part-time employees);
    28  or
    29    (iii) at  least  two  hundred  fifty  employees  (excluding  part-time
    30  employees)] twenty or more employees.
    31    [5.  "Part-time  employee"  means  an  employee who is employed for an
    32  average of fewer than twenty hours per week or who has been employed for
    33  fewer than six of the twelve months preceding the date on  which  notice
    34  is required.
    35    6.  "Plant]  10.  "Facility  closing" means the permanent or temporary
    36  shutdown of a single site of employment, or one or  more  facilities  or
    37  operating  units  within  a  single  site of employment, if the shutdown
    38  results in an employment loss at the single site  of  employment  during
    39  any thirty-day period for [twenty-five] twenty or more employees [(other
    40  than part-time employees)].
    41    [7.] 11. "Representative" means an exclusive representative within the
    42  meaning  of section 9(a) or 8(f) of the National Labor Relations Act (29
    43  U.S.C.  159(a), 158(f)) or section 2 of the Railway Labor Act (45 U.S.C.
    44  152).
    45    [8.] 12. "Relocation" means the removal of all or substantially all of
    46  the industrial or commercial operations of an employer  to  a  different
    47  location fifty miles or more away.
    48    13.  "Person"  means  any individual, partnership, association, corpo-
    49  ration, cooperative, limited liability company, firm,  trust,  or  other
    50  entity.
    51    § 2. Subdivision 3 of section 860-b of the labor law is REPEALED.
    52    §  3. Subdivisions 5 and 7 of section 860-b of the labor law, as added
    53  by chapter 475 of the laws of 2008, are amended to read as follows:
    54    5. In the case of a sale of part or all of an employer's business, the
    55  seller shall be responsible for providing notice for any [plant] facili-
    56  ty closing or mass layoff in accordance with this  section,  up  to  and

        S. 5617                             4

     1  including  the  effective  date of the sale. After the effective date of
     2  the sale of part or all of an employer's business, the  purchaser  shall
     3  be  responsible for providing notice for any [plant] facility closing or
     4  mass  layoff  in accordance with this section. Notwithstanding any other
     5  provision of this article, any person who is an employee of  the  seller
     6  as  of the effective date of the sale shall be considered an employee of
     7  the purchaser immediately after the effective date of the sale.
     8    7. Nothing set forth herein shall be read to prevent an  employer  who
     9  is  not required to comply with the notice requirements of this section,
    10  to the extent possible, to provide  notice  to  its  employees  about  a
    11  proposal  to  close  a  [plant] facility or permanently reduce its work-
    12  force.
    13    § 4. Subdivision 1 of section 860-c of the  labor  law,  as  added  by
    14  chapter 475 of the laws of 2008, is amended to read as follows:
    15    1.  In  the  case  of  a  [plant]  facility closing or mass layoff, an
    16  employer is not required to comply with the notice requirement in subdi-
    17  vision one of section eight hundred sixty-b of this article if:
    18    (a)[(i) at the time the notice would have been required, the  employer
    19  was actively seeking capital or business; and
    20    (ii)  the  capital or business sought, if obtained, would have enabled
    21  the employer to avoid or postpone the relocation or termination; and
    22    (iii) the employer reasonably and in good faith believed  that  giving
    23  the  notice required by subdivision one of section eight hundred sixty-b
    24  of this article would have precluded the  employer  from  obtaining  the
    25  needed capital or business;
    26    (b)  the  need for a notice was not reasonably foreseeable at the time
    27  the notice would have been required;
    28    (c)] the [plant] facility closing is of a temporary  facility  or  the
    29  [plant]  facility closing or mass layoff is the result of the completion
    30  of a particular project or undertaking, and the affected employees  were
    31  hired  with  the  understanding that their employment was limited to the
    32  duration of the facility or project or undertaking;
    33    [(d) the plant closing or mass layoff is due to any  form  of  natural
    34  disaster, such as a flood, earthquake, or drought; or
    35    (e)]  (b)  the facility closing or mass layoff constitutes a strike or
    36  constitutes a lockout not intended to evade  the  requirements  of  this
    37  article.  Nothing  in  this  article  shall require an employer to serve
    38  written notice when permanently replacing a person who is deemed  to  be
    39  an  economic  striker  under the National Labor Relations Act (29 U.S.C.
    40  151 et seq.). Nothing in this article shall be  deemed  to  validate  or
    41  invalidate  any judicial or administrative ruling relating to the hiring
    42  of permanent replacements for economic strikers under the National Labor
    43  Relations Act.
    44    § 5. Section 860-d of the labor law, as added by chapter  475  of  the
    45  laws of 2008, is amended to read as follows:
    46    §  860-d. Extension of mass layoff period.  A mass layoff of more than
    47  [six] three months which, at its outset, was  announced  to  be  a  mass
    48  layoff  of [six] three months or less with an announced expected date of
    49  recall shall be treated as an employment loss under this article unless:
    50    1. the extension beyond [six]  three  months  is  caused  by  business
    51  circumstances  (including  unforeseeable  changes  in price or cost) not
    52  reasonably foreseeable at the time of the initial mass layoff; and
    53    2. notice is given at the time it becomes reasonably foreseeable  that
    54  the extension beyond [six] three months will be required.
    55    §  6.  Section  860-e of the labor law, as added by chapter 475 of the
    56  laws of 2008, is amended to read as follows:

        S. 5617                             5

     1    § 860-e. Determinations with respect to employment loss. In  determin-
     2  ing  whether  a  [plant] facility closing or mass layoff has occurred or
     3  will occur, employment losses for two or more groups of employees  at  a
     4  single site of employment, each of which is less than the minimum number
     5  of employees specified in [subdivisions four or six] subdivision nine or
     6  ten  of  section  eight hundred sixty-a of this article but which in the
     7  aggregate meet or exceed that minimum number set forth in such  subdivi-
     8  sions,  and which occur within any ninety-day period shall be considered
     9  to be a [plant] facility closing or  mass  layoff  unless  the  employer
    10  demonstrates  that  the employment losses are the result of separate and
    11  distinct actions and causes and are not an attempt by  the  employer  to
    12  evade the requirements of this article.
    13    §  7.  The section heading of section 860-g of the labor law, as added
    14  by chapter 475 of the laws of 2008, is amended to read as follows:
    15    Violation; liability; severance.
    16    § 8. Subdivisions 2, 4, 6 and 8 of section 860-g of the labor law,  as
    17  added by chapter 475 of the laws of 2008, are amended and two new subdi-
    18  visions 9 and 10 are added to read as follows:
    19    2.  Back  pay and other liability under this section is calculated for
    20  the period of the employer's violation, [up to a maximum of sixty days,]
    21  or one-half the number of days that the employee  was  employed  by  the
    22  employer, whichever period is smaller.
    23    4. The amount of an employer's liability under subdivision one of this
    24  section, shall be reduced by the following:
    25    (a) Any wages, except vacation moneys accrued before the period of the
    26  employer's  violation,  paid  by the employer to the employee during the
    27  period of the employer's violation.
    28    (b) Any voluntary and unconditional payments made by the  employer  to
    29  the employee that were not required to satisfy any legal obligation.
    30    (c)  Any payments by the employer to a third party or trustee, such as
    31  premiums for health benefits  or  payments  to  a  defined  contribution
    32  pension  plan,  on  behalf  of  and attributable to the employee for the
    33  period of the violation.
    34    (d) Any liability paid by the employer under  any  applicable  federal
    35  law  governing  notification of mass layoffs, [plant] facility closings,
    36  or relocations.
    37    (e) In an administrative proceeding by the commissioner, any liability
    38  paid by the employer prior to the commissioner's  determination  as  the
    39  result of a private action brought under this article.
    40    (f) In a private action brought under this article, any liability paid
    41  by  the  employer  in  an  administrative proceeding by the commissioner
    42  prior to the adjudication of such private action.
    43    6. [If an employer proves to the satisfaction of the commissioner that
    44  the act or omission that violated this article was  in  good  faith  and
    45  that  the  employer had reasonable grounds for believing that the act or
    46  omission was not a violation of this article, the commissioner  may,  in
    47  his  or  her  discretion, reduce the amount of liability provided for in
    48  this section. In determining the amount of such reduction,  the  commis-
    49  sioner  shall  consider  (a) the size of the employer; (b) the hardships
    50  imposed on employees by the violation; (c) any efforts by  the  employer
    51  to  mitigate  the  violation;  and  (d)  the  grounds for the employer's
    52  belief.]
    53    (a) Within thirty days after a natural  disaster,  such  as  a  flood,
    54  earthquake,  or drought, an employer may make application to the commis-
    55  sioner for a reduction in liability imposed under this article. If  such
    56  employer  proves, to the satisfaction of the commissioner, that the mass

        S. 5617                             6

     1  layoff, relocation or employment loss out of which liability arose was a
     2  direct result of such natural disaster, the commissioner may, in his  or
     3  her  discretion,  reduce any liability with respect to such mass layoff,
     4  relocation  or  employment  loss provided for in this article, including
     5  the severance obligations provided by subdivision ten of  this  section.
     6  In  determining  the  amount of any approved reduction, the commissioner
     7  shall consider:(i) the size of the employer; (ii) the hardships  imposed
     8  on employees by any and all violations; (iii) any efforts by the employ-
     9  er  to mitigate any violation or violations and any reduction in liabil-
    10  ity to employees; and (iv) the degree of harm caused to the employer and
    11  the employees by the natural disaster.
    12    (b) Any aggrieved employee of an employer making application  pursuant
    13  to  paragraph  (a) of this subdivision seeking to challenge the determi-
    14  nation of the commissioner may bring a civil action on their own behalf,
    15  or on behalf of other persons similarly situated, or both, in any  court
    16  of  competent  jurisdiction,  within the time period provided by section
    17  two hundred thirteen of the civil practice law and rules. The court  may
    18  award  reasonable  attorney's fees as part of costs to any plaintiff who
    19  prevails in a civil action brought under this article.
    20    8. Neither the commissioner nor any court shall have the authority  to
    21  enjoin a [plant] facility closing, relocation, or mass layoff under this
    22  article;  provided,  however, whenever an employer is liable pursuant to
    23  subdivision one of this section, application may be made by the attorney
    24  general in the name of the people of the state of New York to a court or
    25  justice having jurisdiction by a special proceeding to issue an  injunc-
    26  tion,  and  upon  notice to the defendant of not less than five days, to
    27  enjoin and restrain the actions of such  employer  or  take  such  other
    28  actions  the  attorney  general  may  deem  appropriate  to  enforce the
    29  provisions of subdivision one of this section.  In connection  with  any
    30  such  proposed  application,  the attorney general is authorized to take
    31  proof and make a determination  of  the  relevant  facts  and  to  issue
    32  subpoenas in accordance with the civil practice law and rules.
    33    9.  No  waivers  of  liability under this article shall be enforceable
    34  unless supervised by a court, the commissioner or certified class  coun-
    35  sel.
    36    10.  Whenever  there  is  a  plant closing, relocation, or mass layoff
    37  under this article, the employer shall pay severance  to  each  employee
    38  entitled  to  notice who lost his or her employment equal to one week of
    39  pay for each full year of employment. An  employer  who  fails  to  give
    40  notice  as required by paragraph (a) of subdivision one of section eight
    41  hundred sixty-b of this article before ordering  a  mass  layoff,  relo-
    42  cation,  or  employment  loss shall pay each such employee an additional
    43  four weeks of severance pay. The rate of severance pay provided  by  the
    44  employer  pursuant  to this section shall be the average regular rate of
    45  compensation received by the employee during the  last  three  years  of
    46  employment  with  the  employer, or the employee's final regular rate of
    47  compensation, whichever is  higher.  Severance  under  this  subdivision
    48  shall  be regarded as compensation due to an employee for losses associ-
    49  ated with the termination of the employment relationship, and earned  in
    50  full  upon the termination of the employment relationship, notwithstand-
    51  ing the calculation of the amount of the payment with reference  to  the
    52  employee's  length  of service. The employer shall pay the severance pay
    53  required pursuant to this subdivision or the severance pay required by a
    54  collective bargaining agreement or for any other  reason,  whichever  is
    55  greater.  The  four  weeks  of severance pay provided for an employee by
    56  this subdivision in the event of a failure to give notice as required by

        S. 5617                             7

     1  paragraph (a) of subdivision one of section  eight  hundred  sixty-b  of
     2  this  article  shall  be  reduced  by  any back pay paid to the employee
     3  pursuant to this section or subsection 5 of section 2104 of the  federal
     4  Worker  Adjustment and Retraining Notification Act (29 U.S.C.  Sec. 2104
     5  et seq.), because of a violation of subsection 3 of section 2102 of such
     6  act (29 U.S.C. Sec. 2102 et seq.). No waiver of the right  to  severance
     7  provided  pursuant  to  this  subdivision  shall  be  effective  without
     8  approval of the waiver by the  commissioner  or  a  court  of  competent
     9  jurisdiction.
    10    §  9.  Severability. If any provision or application of this act shall
    11  be held to be invalid, or to violate or be inconsistent with any  appli-
    12  cable  federal law or regulation, that shall not affect other provisions
    13  or applications of this act which  can  be  given  effect  without  that
    14  provision  or  application; and to that end, the provisions and applica-
    15  tions of this act are severable.
    16    § 10. This act shall take effect immediately.
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