Save NY Call Center Jobs Act (S.1826-A/A.567-A) | 2019

February 11th, 2019

AN ACT to amend the Labor Law, in relation to enacting the “save New York call center jobs act of 2019

S.1826-A (Kennedy)
A.567-A (Rosenthal)

MEMORANDUM IN OPPOSITION Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from Upstate New York, opposes this legislation.

This bill would penalize companies that relocate their call centers from New York State to a foreign country by making them ineligible for “any direct or indirect state grants, state guaranteed loans, tax benefits or other financial governmental support.” It would also impose penalties of up to $10,000 per day on companies that relocate call center jobs without notifying the state Department of Labor.

The legislation is not clear as to why this measure is necessary, or how it would protect or otherwise benefit the people of New York State.

While enactment of this bill may prevent some existing jobs in New York State from being moved, it will also have several adverse long-term impacts.  First, it will serve as a major disincentive to any company looking to bring new call center jobs to New York State.  Second, it will undermine the ability of companies that do maintain call center jobs in New York State to compete effectively in the global economy.

The adverse impacts of this bill will affect many business sectors throughout the state, including manufacturing, insurance, financial services and retail, among others.

Instead of approving legislation such as this, which will add to the state’s already high costs and regulatory burdens, we urge lawmakers to instead consider steps to make New York State a less costly and difficult place to do business.  A better option than imposing new rules on call centers is for New York State to reduce its tax and regulatory burdens so that New York State is a better place to invest, start and grow a business.

Unshackle Upstate respectfully requests lawmakers reject this legislation.