Exempts an employer that is required by contract to provide services to another entity by means of having one or more of its employees work at the facilities of the other entity for the entire daily work period and that must pay an additional employee to provide substitute services in the absence of the original contracted-for employee from the requirement to provide paid sick leave.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9403
SPONSOR: Buttenschon TITLE OF BILL:
An act to amend the labor law, in relation to providing an exception to
an employer's obligation to provide paid sick leave to its employees for
certain businesses
PURPOSE OR GENERAL IDEA OF BILL:
This bill would exclude an employer that is required by contract to
provide services to another entity from having to provide paid sick
leave to the employee. The employer would still be required to provide
unpaid sick leave in accordance with the paid sick leave policy and size
of the employer.
SUMMARY OF PROVISIONS:
Section 1 establishes that employers who are required by contract to
provide services to another entity (i) by means of having one or more of
its employees work at the facilities of the other entity for the entire
daily work period and (ii) that must pay an additional employee to
provide substitute services in absence of the original contracted for
employee shall not be required to provide paid sick leave. Nothing in
the subdivision shall be construed to limit the amount of unpaid sick
leave the employer is required to provide.
Section 2 marks the effective date of the legislation.
JUSTIFICATION:
Businesses that provide contractual services to other businesses or
individuals face an unusual situation and burden when it comes to the
application of the New York State Sick Leave law passed as part of the
SFY 2020-21 budget. Businesses that provide services to clients at
specifically contracted times are required to have employees present
based on the agreed upon contract. In the case that one employee is
unable to be present for a shift, the businesses are required to bring
in another employee to provide services for the time period they are
contracted for.
In the case of a small business that provides contractual security the
business is required to have a security officer present for select
contracted times. If the business has an employee that is scheduled to
work a shift and that calls in sick, not only does the business have to
provide paid sick leave, but they must still provide the client with a
security officer for that shift. This means that the business is only
receiving compensation from a client for one security officer who is
working, but must provide pay to both employees. Businesses that do not
provide contractual services would not have to do the same thing should
one of their employees need to use their sick leave.
This legislation would still require the businesses providing contractu-
al services to provide unpaid sick leave to employees based on their
size.
PRIOR LEGISLATIVE HISTORY:
2021-2022: A.1113 - Referred to Labor
2019-2020: A.11090 - Referred to Labor
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become law.
STATE OF NEW YORK
________________________________________________________________________
9403
2025-2026 Regular Sessions
IN ASSEMBLY
December 19, 2025
___________
Introduced by M. of A. BUTTENSCHON -- read once and referred to the
Committee on Labor
AN ACT to amend the labor law, in relation to providing an exception to
an employer's obligation to provide paid sick leave to its employees
for certain businesses
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 12, 13 and 14 of section 196-b of the labor
2 law are renumbered subdivisions 13, 14 and 15 and a new subdivision 12
3 is added to read as follows:
4 12. Notwithstanding the provisions of this section to the contrary, an
5 employer that is required by contract to provide services to another
6 entity (i) by means of having one or more of its employees work at the
7 facilities of the other entity for the entire daily work period and (ii)
8 that must pay an additional employee to provide substitute services in
9 the absence of the original contracted-for employee, shall not be
10 required to provide paid sick leave as provided in paragraph b of subdi-
11 vision one of this section. Nothing in this subdivision shall be
12 construed to limit the amount of unpaid sick leave the employer is
13 required to provide pursuant to subdivision one of this section.
14 § 2. This act shall take effect on the ninetieth day after it shall
15 have become a law. Effective immediately, the addition, amendments
16 and/or repeal of any rule or regulation necessary for the implementation
17 of this act on its effective date are authorized to be made and
18 completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14296-01-5
