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A10674 Summary:

SPONSORRules (Otis)
COSPNSRMcDonald, Mosley, Dickens, Seawright, Fahy
Amd 860-b, Lab L
Relates to written notice requirements for mass layoffs; includes a requirement to notify all localities in the state where the employer remitted taxes in the current or previous year and each locality that provides police, firefighting, emergency medical or ambulance services to real property where the employer has a place of business.
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A10674 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Rules (Otis)
  TITLE OF BILL: An act to amend the labor law, in relation to written notice require- ments for mass layoffs   PURPOSE OR GENERAL IDEA OF BILL: This legislation will amend the labor law, to require written notice concerning mass layoffs to the unit or units of local government and the school district or districts in which the employment loss will occur and each locality that provides emergency services to the site of employment where the employment loss will occur.   SUMMARY OF PROVISIONS: Section 1 amends subdivision 1 of section 860-b of the labor law to add as additional recipients of required WARN Act notice: 1) the chief elected official of the unit or units of local government and the school district or districts in which the mass layoff, relo- cation, or employment loss will occur; and 2) each locality that provides emergency services to the site of employ- ment where the employment loss will occur. Section 2 is the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): The amended version clarifies which localities would receive a WARN Act notice from an employer.   JUSTIFICATION: On December 23, 2019; the Doral Arrowwood Resort in the Village of Rye Brook informed the Department of Labor and the Village of Rye Brook that it would be shutting down on January 12, 2020, just 20 days later. It provided notice of this event to its approximately 275 employees the next day, Christmas Eve. While the Doral Arrowwood provided notice to the Village of Rye Brook in order to comply with federal WARN Act requirements, many officials from other communities in the area, despite such communities being deeply affected, discovered the situation as a result of reports in the press. The surrounding communities and the Blind Brook School District collectively relied on nearly $2,000,000 in tax revenue from the Doral Arrowwood, and the Doral Arrowwood provided certain maintenance services for adjacent developments. In addition, existing hotel facilities such as an on-site cogeneration facility, swimming pool, maintenance materials (including fuel compressed gas), and stocked kitchen and bars presented significant maintenance and health and safety issues. The federal WARN Act requires the employer to provide notice to the unit of local government in which the employer is located (and in the case of multiple such units of government, to the one to which the highest taxes were paid in the preceding year). The New York WARN Act has no require- ment that affected communities be notified, despite the scale and far- reaching effects of situations that trigger WARN Act compliance. This lack of notice presents risks in that, among other matters: (1) the communities may have to address health and safety dangers with respect to a large abandoned property; and (2) loss of revenue may require significant and immediate budgetary changes. This bill requires employers with WARN Act notice obligations to notify affected communities and school districts (in addition to the existing requirement to notify employees, the Department of Labor, and local workforce investment boards) to ensure that these communities are aware of mass layoffs, plant closings, and major relocations. Receiving notice of these situations at the same time as other WARN Act notice recipients will enable these communities to react sooner and more effectively to manage situations such as the closing of the Doral Arrowwood that have a significant impact on the well-being of their residents, essential service obligations, and revenue.   PRIOR LEGISLATIVE HISTORY: This is a new bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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