NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7959
SPONSOR: Stirpe TITLE OF BILL:
An act to amend the labor law, in relation to the calculation of weekly
employment insurance benefits for certain workers; to amend a chapter of
the laws of 2021 amending the labor law relating to the calculation of
weekly employment insurance benefits for workers who are partially unem-
ployed, as proposed in legislative bills numbers S. 1042-A and A.
2355-A, in relation to the effectiveness thereof; and to repeal certain
provisions of the labor law relating thereto
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to amend a chapter of the laws of 2021
amending the labor law relating to the calculation of weekly employment
insurance benefits for workers who are partially unemployed, as proposed
in legislative bills numbers S.1042-A and A.2355-A, to effectuate the
intent of the law.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 524 of the Labor Law to clarify the
definition of "week of employment" in situations where a claimant is
employed on a shift starting on Sunday and continuing through midnight
into Monday.
Section 2 of the bill would make technical changes.
Section 3 of the bill would repeal paragraph (d) of subdivision 5 of
section 590 of the labor law, as added by a chapter of the laws of 2021
amending the labor law relating to the calculation of weekly employment
insurance benefits for workers who are partially unemployed, as proposed
in legislative bills numbers S.1042-A and A.2355-A, to eliminate the
option for claimants to take a 25% benefit reduction when they only have
one day of employment in a week.
Sections 4 through 13 of the bill would make technical changes.
Section 14 of the bill would establish a severability clause and add a
new section to the unconsolidated law to provide for an interim method
for calculating partial unemployment benefits until the underlying
legislation takes effect. This method would disregard the first 10 hours
of work performed by a claimant during a week of unemployment and estab-
lish a schedule of benefit reductions as follows:
*0-10 hours: 0% benefit reduction
*11-16 hours: 25% benefit reduction
*17-21 hours: 50% benefit reduction
*22-30 hours: 75% benefit reduction
*31 and more hours: 100% benefit reduction
Section 15 of the bill would amend the effective date of a chapter of
the laws of 2021 amending the labor law relating to the calculation of
weekly employment insurance benefits for workers who are partially unem-
ployed, as proposed in legislative bills numbers S.1042-A and A.2355-A,
to April 1, 2022 or 30 days after the Commissioner of Labor certifies
that the New York State Department of Labor has an information technolo-
gy system capable of accommodating the amendments in such act, whichever
occurs earlier.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
N/A
JUSTIFICATION:
On January 18, 2021, the New York State Department of Labor implemented
a new emergency rule to redefine how part-time work is calculated using
an "hours-based" approach. Under these new rules, a claimant can work
more than four days during the week without automatically losing their
full unemployment benefit under the current law. While this approach was
better than the 25% benefit reduction penalty that had applied previous-
ly to each day of employment in a week, regardless of the number of
hours worked per day, it still unfairly penalizes partially unemployed
workers by basing their unemployment benefits on the amount of time they
work rather than how much they actually earn.
Subsequently, legislation which passed both houses, as proposed in
legislative bills numbers S.1042-A and A.2355-A, removed the 25% per day
penalty for partially unemployed claimants and established an earnings-
based system to provide a fairer and more equitable computation of
partial unemployment insurance benefits which are proportionate to the
claimant's wages. This legislation revised the calculation of partial
unemployment benefits by establishing a "partial benefit credit" based
on the claimant's weekly benefit rate for total unemployment, which
would then be applied against their actual weekly earnings.
This bill would amend such legislation to effectuate the intent of the
law and ensure that claimants are able to access a more reasonable
amount of benefits in the time that it takes the Department of Labor to
modernize its unemployment insurance systems and incorporate the new
partial unemployment insurance changes. This bill, together with the
original legislation, represents a necessary step forward to creating a
more modern and reliable unemployment program that helps New Yorkers
maintain their job skills and attachment to the labor market, encourages
more individuals to seek out available job opportunities, and provides
essential support to part-time workers as they continue to strive
towards full-time employment.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately; provided that sections one
through fourteen of this act shall take effect on the same date and in
the same manner as a chapter of the laws of 2021 amending the labor law
relating to the calculation of weekly employment insurance benefits for
workers who are partially unemployed, as proposed in legislative bills
numbers S.1042-A and A. 2355-A, takes effect; provided, however, that
the amendments to subdivision 1 of section 591 of the labor law made by
section four of this act shall be subject to the expiration and rever-
sion of such subdivision pursuant to section 10 of chapter 413 of the
laws of 2003, as amended, when upon such date the provisions of section
five of this act shall take effect; and provided, further, that the
amendments to section 591-a of the labor law made by sections eight and
nine of this act shall not affect the expiration and repeal of such
section and shall expire and be deemed repealed therewith.
