Bill > A00866

This bill establishes a more stringent set of criteria for determining whether an individual providing labor or services should be classified as an employee rather than an independent contractor in New York State. Specifically, the bill amends multiple sections of labor and workers' compensation laws to create a three-part test for worker classification: (1) the worker must be free from the hiring entity's control and direction both contractually and in actual practice, (2) the work performed must be outside the usual course of the hiring entity's business, and (3) the worker must be customarily engaged in an independently established trade, occupation, or business of the same nature as the work being performed. If a hiring entity cannot demonstrate that all three of these conditions are met, the worker will be considered an employee for legal purposes. This means the worker would be entitled to protections and benefits typically associated with employee status, such as minimum wage, overtime, workers' compensation, and other labor law provisions. The bill applies these new classification standards across various sections of New York labor law, including areas related to employment classification, work hours, and workers' compensation, effectively making it more difficult for businesses to classify workers as independent contractors.

Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/A866