PRESS INQUIRIES
New York City Council
Committee on Civil Service and Labor
Legislation Expanding the Earned Safe and Sick Time Act – Ints. 78, 563, 617
Thank you, Chairs De La Rosa and Velazquez and members of the committees, for the opportunity to testify on legislation expanding the Earned Safe and Sick Time Act (ESTA). The Partnership for New York City represents private sector employers of more than one million New Yorkers. We work together with government, labor, and the nonprofit sector to maintain the city’s position as the preeminent global center of commerce, innovation, and economic opportunity.
The Partnership was involved in crafting the original sick leave law and supports efforts to ensure that workers can access sick leave that they are entitled to under ESTA. A 2021 report by the Community Service Society found that half of low-income workers had heard little or nothing about their right to paid sick leave. That report recommended passage of the provisions of Int. 78 as well as additional outreach to ensure employers are aware of the law. We agree and enthusiastically support Int. 78.
The Partnership is deeply concerned, however, about the Council’s continuing imposition of additional burdens on employers that make operating a business or nonprofit in New York City increasingly difficult, particularly for small entities. Int. 563 and Int. 617 would do just that. We urge the Council not to pass these bills.
Int. 563 would allow workers to sue in court for claimed violations of ESTA. Aggrieved individuals already could seek relief under ESTA by filing a complaint with the NYC Department of Consumer and Worker Protection. The private right of action, which was purposely excluded from the original ESTA, would encourage expensive lawsuits. This provision will do nothing to improve workers’ awareness of their rights or employers’ knowledge about their responsibilities but would expose employers to litigation even when claims are spurious. The costs outweigh any benefit.
Int. 617 would expand eligibility for ESTA to workers who are independent contractors. It is often hard to distinguish an independent contractor from a business vendor, resulting in confusion over who is eligible for ESTA and imposing an additional burden on employers. This law would be complicated to interpret or enforce, in addition to increasing costs for employers at a time when many are struggling to stay in business in this high-cost city.
The City Council has passed more than 40 new laws in recent years that have added to the expenses of employers, including the legal and insurance costs associated with increased litigation. This has contributed to New York being tied with Singapore in 2022 as the most expensive city in the world. Yet the Council has established no process for analyzing the cumulative impact of its legislation on the affordability challenges associated with living or running a business or nonprofit in the city. We would urge such an analysis of every bill the Council considers. The Partnership would be happy to identify experts to help develop and carry out such analyses and hope you will take this proposal seriously. The costs you impose on employers are passed along to consumers and customers, including government.
Thank you.