N.Y. Comp. Codes R. & Regs. tit. 9 § 5.78

Current through Register Vol. 46, No. 25, June 18, 2024
Section 5.78 - Executive order no. 78: establishing the governor's task force on independent contractors

WHEREAS, the classification of a worker as an employee or an independent contractor has significant legal and policy ramifications both for the State and for the parties to the work relationship, including eligibility for unemployment insurance, workers' compensation and disability insurance, and tax liability and flexibility to adopt business practices geared to changing economic realities;

WHEREAS, employers face uncertainty in the proper classification of workers because there is no statute, code, rule or regulation that specifically identifies the factors or conditions constituting an independent contractor relationship;

WHEREAS, employers must deal with several state agencies with concurrent jurisdiction over this issue and these agencies sometimes provide contradictory determinations;

WHEREAS, it is in the interest of the State to provide a means by which workers are fairly categorized so that they do not suffer the loss of rights or benefits resulting from the improper or misleading classification of their status; and

WHEREAS, it is in the interest of the State to set forth a comprehensive policy to end the confusion that has unfairly caused concern to employers, employees and independent contractors;

NOW, THEREFORE, I, GEORGE E. PATAKI, Governor of the State of New York, by virtue of the authority vested in me by the Constitution and Laws of the State of New York, do hereby create the Governor's Task Force on Independent Contractors. The Task Force shall consist of nine members and shall include the Commissioner of Labor or his designee; the Commissioner of Taxation and Finance or his designee; the Chairman of the Workers' Compensation Board or his designee; the Director of the Governor's Office of Regulatory Reform or his designee; the Executive Director of the State Insurance Fund or his designee; two members appointed by the Governor upon recommendation of the New York State AFL-CIO and two members appointed by the Governor upon recommendation of the Business Council of New York State. The Task Force shall be chaired by the Commissioner of Labor.

1. The Task Force shall:
a. Identify and recommend guidelines to provide clarity concerning the proper classification of workers as independent contractors or employees;
b. Propose recommendations to achieve uniform determination of independent contractor or employee status among the various state agencies;
c. Ensure that any recommendations are designed to continue the protections afforded legitimate employees;
d. Receive and evaluate information from labor unions, business groups and all other interested parties; and e. Report to the Governor on or before December 31, 1998 with legislative and regulatory proposals.
2. The members of the Task Force shall receive no compensation but shall be entitled to reimbursement for any necessary expenses incurred in connection with the performance of their duties.
3. Every state department, agency, division, board, bureau, commission, and any other entity over which I have executive power shall provide any assistance necessary for the Task Force to carry out its duties.

Signed: George E. PatakiDated: March 26, 1998

WHEREAS, the classification of a worker as an employee or an independent contractor has significant legal and policy ramifications both for the State and for the parties to the work relationship, including eligibility for unemployment insurance, workers compensation and disability insurance, and tax liability and flexibility to adopt business practices geared to changing economic realities;

WHEREAS, employers face uncertainty in the proper classification of workers because there is no statute, code, rule or regulation that specifically identifies the factors or conditions constituting an independent contractor relationship;

WHEREAS, employers must deal with several state agencies with concurrent jurisdiction over this issue and these agencies sometimes provide contradictory determinations;

WHEREAS, it is in the interest of the State to provide a means by which workers are fairly categorized so that they do not suffer the loss of rights or benefits resulting from the improper or misleading classification of their status; and

WHEREAS, it is in the interest of the State to set forth a comprehensive policy to end the confusion that has unfairly caused concern to employers, employees and independent contractors;

NOW, THEREFORE, I, GEORGE E. PATAKI, Governor of the State of New York, by virtue of the authority vested in me by the Constitution and Laws of the State of New York, do hereby create the Governor's Task Force on Independent Contractors. The Task Force shall consist of thirteen members and shall include the Commissioner of Labor or his designee; the Commissioner of Taxation and Finance or his designee; the Chairman of the Workers' Compensation Board or his designee; the Director of the Governor's Office of Regulatory Reform or his designee; the Executive Director of the State Insurance Fund or his designee; four members appointed by the Governor upon recommendation of the New York State AFL-CIO and four members appointed by the Governor upon recommendation of the Business Council of New York State. The Task Force shall be chaired by the Commissioner of Labor.

1. The Task Force shall:
A. Identify and recommend guidelines to provide clarity concerning the proper classification of workers as independent contractors or employees;
B. Propose recommendations to achieve uniform determinations of independent contractor or employee status among the various state agencies;
C. Ensure that any recommendations are designed to continue the protections afforded legitimate employees;
D. Receive and evaluate information from labor unions, business groups and all other interested parties; and
E. Report to the Governor on or before April 1, 1999 with legislative and regulatory proposals.
2. The members of the Task Force shall receive no compensation but shall be entitled to reimbursement for any necessary expenses incurred in connection with the performance of their duties.
3. Every State department, agency, division, board, bureau, commission, and any other entity over which I have executive power shall provide any assistance necessary for the Task Force to carry out its duties.

Signed: George E. PatakiDated: December 8, 1998

[FN*] [Superceded by Executive Order No. 78.1 (George E. Pataki), infra.]

[FN[DAGGER]] [Revoked by Executive Order No. 5 (Eliot Spitzer), infra.]

[Revoked by Executive Order No. 9 (David A. Paterson), infra.]

[Revoked by Executive Order No. 2 (Andrew M. Cuomo), infra.]

[FN*] [Supersedes Executive Order No. 78 (George E. Pataki), supra]

[FN[DAGGER]] [Revoked by Executive Order No. 5 (Eliot Spitzer), infra.]

[Revoked by Executive Order No. 9 (David A. Paterson), infra.]

[Revoked by Executive Order No. 2 (Andrew M. Cuomo), infra.]

N.Y. Comp. Codes R. & Regs. Tit. 9 § 5.78

Superceded by Executive Order No. 78.1 (George E. Pataki), infra.