The Business Council opposes this legislation which would penalize a business moving a discrete portion of its operations overseas, by restricting their access to state contracts and loans, regardless of the size of its remaining in-state workforce, payroll and capital investment, its overall positive impact on the state’s economy, and its future in-state expansion.
The legislation would require a call center employer to notify the Labor Commissioner of its intention to relocate a call center, or operating units within a call center, from New York State to a foreign country 100 days prior to such relocation. Failure to give such notice can result in a penalty of up to $10,000 per day. It would also mandate the Commissioner of Labor to compile a list of all New York companies that relocate call centers to foreign countries. Once on this “black list,” a company is no longer eligible for state grants, loans and procurement opportunities.
This legislation could punish any business currently operating centralized offices that handle large volumes of telephone calls for the purposes of providing consumer support, conducting telemarketing and collecting debts. This will impose an unnecessary and undue financial burden on these businesses, impairing their ability to maintain and improve customer service, control costs, and manage employees. Government agencies should not be in the business of monitoring and policing business transactions far outside of its jurisdiction. If enacted, this would lead to negative consequences for a wide array of business sectors including telecommunications, insurance, manufacturing, direct farm providers, energy, financial services and retail.
New York should be welcoming the business community by reducing taxes and the regulatory burdens on businesses to spur growth and job creation, not enacting laws that penalize companies for making necessary business decisions while damaging the reputation and image of companies that have chosen to make New York State home. This is not in the spirit of promoting a business friendly environment. New York should be encouraging innovation and investment as a way to keep jobs in the state, not threatening its employers and taxpayers.
The Business Council urges the legislature to defeat this bill.