6 Reasons to Stay At 60
September 2nd, 2022
On Tuesday, September 6, the Farm Laborers Wage Board will hold its last virtual meeting. At that meeting the Wage Board will likely advanced a report to New York State Commissioner Roberta Reardon that will recommend a gradual phase-in of a 40-hour overtime threshold for farm laborers across the state. We know this because the Wage Board, by a 2-1 vote, already approved this phase-in during a meeting earlier this year.
Once the Wage Board advances its report to Commissioner Reardon, there will be a 15-day public comment period followed by a review of the report by the Commissioner which will last no longer than 45 days.
Considering how important agriculture is to Upstate communities and our economy, Upstate United has been very vocal in our opposition to a lower overtime threshold. So before the Wage Board reconvenes one last time, we’d like to take this opportunity to share six key reasons by Commissioner Reardon and Governor Hochul should keep the overtime threshold at 60 hours.
Reason #1: State Leaders Should Wait for the Results of the USDA 2022 Census
The United State Department of Agriculture’s 2022 Census is currently being conducted. Per the USDA Census website, “The Census of Agriculture provides the only source of uniform, comprehensive, and impartial agriculture data for every county in the nation. Through the Census of Agriculture, producers can show the nation the value and importance of agriculture and can influence decisions that will shape the future of U.S. agriculture.” The 2022 Census will contain important data that will allow Commissioner Reardon, Governor Hochul and other leaders to make an informed decision about how to help New York’s farms. The unfortunate reality is that the 2022 Census will show a drop in the number of farms in our state. Census data from 1997 through 2017 found that New York lost 4,826 farms. In order to ensure the viability of agriculture, we need to reverse this trend – not accelerate it.
Reason #2: New York’s Farmworkers Oppose a Lower OT Threshold
Contrary to the rhetoric from anti-agriculture extremists, a significant number of farmworkers who testified during the Wage Board’s hearings in 2020 and 2022 voiced their strong opposition to a 40-hour overtime threshold. Many farmworkers have also written to newspapers to make the case for the Department of Labor to maintain the current overtime threshold. This opposition is also reflected in a November 2021 report from Cornell University. 72% of H-2A workers indicated that they would be less likely to continue at their current job if the OT threshold is set at 40 hours. That’s because those farmworkers would actually see a decrease in hours and wages and a potential loss of their jobs due to farm closures. If a farm goes out of business, that also means that farmworkers who are provided housing by that farm would become homeless. That’s an extraordinarily unfair and unjust lose-lose scenario for farmworkers.
Reason #3: New York’s Farmers Oppose a Lower OT Threshold
Much like the farmworkers that they employ, a vast majority of farmers are opposed to a lower overtime threshold. Between hours of hearing testimony, media interviews, op-eds and social media posts, farmers across the state have communicated very clearly that they oppose a 40-hour overtime threshold. These farmers are keenly aware of the detrimental impacts that a lower OT threshold will have on their operation. During the 2020 and 2022 Wage Board hearings, several farmers stated that they simply can’t afford to operate under a 40-hour threshold. While New York has budgeted for an overtime tax credit, the fact remains that farmers still have to make payroll. And farmers know that there’s no guarantee that the overtime tax credit will be included in the state budget forever.
Reason #4: New York’s Farms are Facing Economic and Environmental Struggles
Running a farm has been also been a challenging endeavor but it’s much more difficult in recent years. Historic inflation has driven up the prices of fuel and fertilizer – essential commodities for farmers – to extraordinary heights. This year’s drought has also posed a major problem for farmers across New York. Many farmers are reporting smaller yields and damaged crops. In addition to these hardships, New York farms are facing the same rising unemployment insurance costs that are hitting every business in the state. Imposing a 40-hour overtime threshold will only add to extraordinary burdens on farms.
Reason #5: The Viability of the Nourish NY Program Will Be at Risk
Since its launch in April 2020, the Nourish NY program has been an important for farms and hungry families across the state. The program has delivered more than 35 million pounds of surplus agricultural products to New Yorkers in need through the state’s network of food banks. It’s been so successful, Governor Hochul made it a permanent program in November 2021. If Commissioner Reardon and Governor Hochul approve a 40-hour overtime threshold, farms that produce the goods that fuel the Nourish NY program could close. Rather than reducing access to fresh food, our leaders should be working to increase food security across the state.
Reason #6: Local and State Economies Will Suffer
A 2019 report from Cornell University detailed the extraordinary economic impacts delivered by New York’s farms. That report stated: “In 2019, agricultural industries, including agricultural production, agricultural support services, and agricultural manufacturing, directly contributed $43.6 billion in total industry output, 163.1 thousand jobs, and $12.3 billion in gross domestic product to the New York State economy.” An August 2022 report from New York State Comptroller Tom DiNapoli found that despite the challenges of the COVID pandemic, employment and wages on farms have held strong. Local economies also benefit from farms: “…much of the income earned on farms recirculates back into the farmer’s community, supporting a variety of businesses providing fuel, seed, equipment and veterinary services, in addition to the wages paid for farm labor and the taxes paid to local governments.” Threatening the viability of a resilient sector is unwise and unnecessary – especially when you consider the current economic uncertainties. The state Division of Budget is now projecting budget gaps of $13.5 billion over the next 5 years. The gaps are attributed “almost exclusively to the reductions to the tax receipts forecast.” Fewer farms means lower tax revenues, which means bigger problems for state and local governments.
If these six sensible reasons aren’t enough to persuade Commissioner Reardon and Governor Hochul to maintain the current overtime threshold, perhaps the following portion of Article 14, Section 4 from the New York State Constitution may do the job:
“The policy of the state shall be to conserve and protect its natural resources and scenic beauty and encourage the development and improvement of its agricultural lands for the production of food and other agricultural products.”
It’s clear from the testimony of farmworkers and farmers and findings of researchers that the impacts of 40-hour threshold fly in the face of New York’s own constitution.