Urge Governor Cuomo to Veto Harmful Unemployment Insurance Legislation

The Business Council of New York State has asked Governor Cuomo to veto S.4573 / A.6592, legislation that would allow employees choosing to leave their job and go on strike the ability to collect employer-funded unemployment insurance benefits after just one week.

Current state labor laws make New York one of only three states that provide unemployment benefits under any circumstance. This bill would move up the benefits mandate by six weeks giving striking workers, currently the only category of workers whose voluntary job separation qualifies for UI benefits, enhanced benefits paid by their employer while not working.

On behalf of the more than 2,000 members who employ one million plus workers we represent, The Business Council opposes this legislation that would be another added burden on the state’s employers.

Scroll down to view our letter to the Governor requesting a veto.

To join The Business Council’s advocacy efforts on this important legislation, you can send an email to the Governor’s staff asking him to veto the bill below.


 

The Honorable Andrew M. Cuomo
Governor of New York State
New York State Capitol
Albany, NY 12224   

RE: Veto Request S.4573 / A.6592 UI Benefits for Striking Workers

Dear Governor Cuomo:

On behalf of our organizations, which collectively represent thousands of businesses that employ more than one million workers throughout New York, we are writing to respectfully request that you veto S.4573 / A.6592.

New York State is one of only three states that provides unemployment benefits to striking workers, making strikers the only category of workers whose voluntary job separation qualifies for UI benefits under state labor law. Current state law offers these benefits to striking workers after a seven week “suspension period.” This legislation would make New York even more of an outlier among the states by reducing that suspension period to just one week.  

This expansion of unemployment benefits for striking workers sends the wrong message to employers. Unemployment benefits are fully funded by New York employers through more than $2 billion in annual taxes – taxes that were raised to pay off a $3 billion UI fund deficit in 2013. Expanding these benefits will result in additional tax increases on affected businesses, effectively forcing employers to subsidize the cost of a strike. Coupled with existing taxes and regulations, these increased costs will discourage businesses from location or reinvesting in New York State.  

By compensating striking workers through employer funded unemployment benefits, this bill will tilt state law heavily in favor of the striking worker. This imbalance could increase in the frequency and duration of labor disputes.

Our organizations strongly support policies that will make New York a more attractive place to invest and create good paying jobs. If enacted, this legislation would make current New York employers less competitive, and make our state a less attractive place to do business.

Accordingly, our organizations respectfully request that you veto this legislation.

Thank you.