BILL NUMBER: S5341

SPONSOR: STEC
 
TITLE OF BILL:

An act to amend the labor law, in relation to exempting agricultural
employers from paying for unemployment benefits for federally ineligible
farm labor

 
PURPOSE OR GENERAL IDEA OF BILL:

To exempt employers of alien agricultural labor from paying for unem-
ployment coverage on those workers who are federally ineligible from
receiving such benefits.

 
SUMMARY OF PROVISIONS:

Section 1 - subdivision 2 of section 564 of the labor law is renumbered
subdivision 3 and a new subdivision 2 is added to exclude from the term
"employment" an individual who is an alien admitted to the United States
to perform agricultural labor. This will conform New York State statute
              

to section 214(c) and 101(a)(15)(H) of the Federal Immigration and
Nationality act if they are excluded from the definition of employment
in section 3306(c) of the Federal Unemployment tax Act.

 
JUSTIFICATION:

Currently New York is the only state in the country that requires agri-
cultural employers to pay unemployment insurance premiums for federally
ineligible farm labor. This bill would rectify this inequity in the New
York State Labor Law by exempting agricultural employers from paying for
unemployment coverage for H-2A visa farm workers. Currently, New York
agricultural employers who participate in the H-2A visa farm worker
program are required to pay unemployment insurance premiums for these
temporary visa workers.  However, section 3306(c) of the Federal Unem-
ployment Tax Act excludes these guest workers from collecting unemploy-
ment insurance benefits for their work in the US as they must return to
their home countries. Thus, New York agricultural employers are contrib-
uting to an unemployment insurance plan that can never be collected on
by the employee.It is important to note that these guest laborers
perform a valuable service to the agricultural community by performing
work which otherwise would not be performed by the local labor force.

Farmers must take advantage of hiring H-2A visa farm laborers when they
are unable to hire domestic workers for these positions. If enacted, the
bill will have a negligible impact on the unemployment insurance fund,
and no impact on the individuals hired through the H-2A visa program.
This bill is a necessary step in providing financial relief to many of
our state's farmers.

 
PRIOR LEGISLATIVE HISTORY:

2020/2019: S2525 referred to Labor; A5564 referred to Labor

2018/2017: S139 Referred to Labor; A4480 referred to Labor

2016/2015: S1853A passed Senate; A6256A referred to Labor

 
FISCAL IMPLICATIONS:
To be determined

 
EFFECTIVE DATE:
Immediately