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Legislative Memo

Lev Ginsburg
Director of Government Affairs
T 518.694.4462
www.bcnys.org

BILL:

S.6813-A (Marchione) / A.8542-B (Woerner) 

Support

SUBJECT:

Defines Freight Transportation Broker

 

DATE:

May 22, 2018

 

The Business Council supports S.6813-A (Marchione) / A.8542-B (Woerner), which would define Freight Transportation Brokers in the Labor Law, correcting an unintended consequence of the Transportation Fair Play Act.

Under the Workers’ Compensation Board’s interpretation of current law, New York’s Freight Transportation Brokers are being forced to pay for workers’ compensation coverage for employees of third parties, many of whom are not New York based drivers who ultimately have nearly no nexus to the state.

The very nature of Freight Transportation Brokering, the hiring of third-party carriers to transport multiple goods, from multiple sources, to multiple destinations, anywhere in the world, does not lend itself to the kind of regulatory scheme envisioned in the Transportation Fair Play Act.

Drivers that are contracted by Freight Transportation Brokers from out-of-state are already insured for workers’ compensation in their home jurisdictions, while those from New York are already covered by their employers, thus rendering the requirement of the Freight Transportation Broker paying for workers’ compensation both duplicative and extremely expensive.

This bill simply defines Freight Transportation Brokers, removing the duplicative coverage, saving money and resulting in no loss of coverage for anyone.

For these reasons, The Business Council supports S.6813-A (Marchione) / A.8542-B (Woerner) and urges its passage.