Legislative Memo

UI Benefits for Voluntarily Separated Employees (S.8309)

May 19th, 2020

May 19, 2020

RE: AN ACT to to amend the labor law, in relation to disqualification from receiving benefits for separation from employment in cases where the claimant’s employer maintained or refused or failed to cure a health or safety condition that made the environment unsuitable     

S.8309 (Hoylman)

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 all parts of Upstate New York strongly opposes this legislation.

This proposal, which amends New York State labor law related to unemployment benefit eligibility, would dramatically impede New York’s economic recovery, and add significant costs to New York’s already overburdened unemployment program. If enacted, the bill would allow an individual who has been fired, voluntarily leaves their position, or refuses an offer of employment to remain eligible for unemployment benefits if the employee believes the employer is providing an unsuitable working environment.

As New York begins to reopen, the state should be looking for ways to support the economy. Unfortunately, this legislation would hurt recovery efforts by creating a disincentive for employees to work. The bill would put an employee in a position to determine “suitable health and safety conditions”. Once an employee has made such a claim that a workplace is not meeting that standard, they would be able to quit, walk off a shift or refuse to return from furlough without losing their unemployment eligibility. There is no requirement in the legislation that these claims be verified by an official authority. This puts employees in an inappropriate position of authority and jeopardizes an employer’s ability to successfully run their operation.

Additionally, this legislation would add unnecessary new costs to New York’s unemployment system. Unemployment benefits are intended to provide temporary income to individuals who have lost their job at no fault of their own. This legislation would allow individuals who voluntarily left their position to access these benefits with no requirement that their claims be substantiated by the state. With New York’s unemployment system already stressed, this expansion is irresponsible.

Employers have a responsibility to provide their workers with a safe and healthy work environment, a requirement made even more clear during this public health requirement. The overwhelming majority of businesses adhere to this standard not just because it is required, but because they care about the health and wellbeing of their employees. However, The New York Forward reopening plan provides a complaint process for any employee, customer or any other party who believes a worksite is not in compliance with necessary guidelines. If an employee feels their employer fails to meet the necessary health and safety standards, they should take action through the established channels.

New York has a long way to go in our efforts to rebuild our economy in the wake of this unprecedented crisis. As those efforts begin, the state should be eager to help businesses through this difficult time. Instead, this bill would make it substantially more difficult for employers to succeed.

For these reasons Unshackle Upstate strongly opposes the enactment of this legislation.

Contact:

Michael Kracker, Executive Director

716.541.1755

Michael.Kracker@unshackleupstate.com