Temporary Disability Insurance (TDI) Increase Bill Fails – NYECA Again Stops Unacceptable Version of this Legislation
For the second year in a row, NYECA has stopped legislation that would have immediately and directly increased payroll costs for its members. A.84/S.172 proposed a dramatic increase in Temporary Disability Insurance (TDI) income for workers suffering from an injury or illness that occurred off the worksite (for example, in their homes). While there were other flaws with the bill, NYECA primarily opposed it due to its anticipated, devastating financial impact on NYECA’s closed, self-insured disability insurance plan. And just like last year NYECA was also clear this year: NYECA could support a reasonable increase in TDI benefits if there were adequate considerations and protections included to protect NYECA’s self-insured plan. Since there were still no adequate protections in this year’s bill, we had no choice but to oppose it again, which we did successfully, working with other allied trade associations who also had concerns with the proposal.
NYECA Joins Coalition to Reform Unfair NYS Health Care Tax – Goal is to Reduce Payroll Taxes for NYECA Members
This year NYECA joined a coalition in support of “HCRA” revenue reform. Since taking effect in 1997, the NYS Health Care Reform Act (HCRA) imposes taxes on employer-provided healthcare benefits, including the health benefits NYECA members provide to their workers. These taxes, which go into a dedicated fund to pay for Medicaid and other public goods such as indigent care, are only imposed on employers who provide health benefits. Employers who provide no benefits to workers pay no HCRA taxes – crazy, but true!
After nearly three decades of relative obscurity, the HCRA tax has ballooned into the fourth-largest revenue stream for the state (about $6.5 billion annually). These HCRA taxes have been raised 14 times without question or debate. We estimate that HCRA taxes increase benefit costs by over 4% annually (or about $250 per employee and $1,000 per family). This adds up: the Pension, Hospitalization Benefit Plan of the Electrical Industry paid over $22 million in HCRA taxes in 2023 alone. While HCRA taxes are imposed across all industries, they are exacerbated in the building trades where NYECA bids for contracts directly against contractors who provide no benefits to their workers and pay no HCRA taxes to the state. Given those employers reduce their costs by pushing workers onto the very public goods that our HCRA taxes pay for, NYECA is in effect subsidizing its competition!
With HCRA up for renewal in 2026, a coalition of stakeholders, including NYECA, is supporting S.8157 Ramos/A.8642 Hevesi that would repeal HCRA taxes and replace them with broad based business tax surcharges. Under this legislation, those who currently pay HCRA taxes would see a steep reduction in their tax bills, and those who burden the system by providing no health benefits would be subjected to an increased tax. This HCRA reform effort is in its early stages, and we will continue to update you as it develops.
NYECA Priority Bill Status Update
Below is a report on priority NYECA legislation status at the end of the regular session, which recessed on June 17:
A.84 Solages/S.172 Ramos – Increases Temporary Disability Income (TDI) benefits. PRIORITY OPPOSE
Did not pass
A.5405 Hunter)/S.5655 Ryan – Compliance with the statutory requirement of a maximum 5% retainage in construction contracts. PRIORITY SUPPORT
Passed
A.7235 Bichotte Hermelyn/S.6315 Sanders – Establishes expanded construction mentorship opportunities for small and minority and women-owned business enterprises. SUPPORT
Passed
A.2212 Braunstein/S.4750 Martinez – Prohibits the retention for any amount due for materials delivered and accepted for a public or private construction project. OPPOSE
Did not pass
A.2747-A Bronson/S.2536-A Jackson – Inclusion of certain off-site custom fabrication as public work for the purposes of payment of prevailing wage. NEUTRAL
Passed
A.4727 Bronson/S.50 Comrie – Relates to paid family leave benefits NEUTRAL
Passed
A.6063 Lunsford/S.4423 Hoylman-Sigal – Provides for the types of damages that may be awarded to the persons for whose benefit an action for wrongful death is brought. OPPOSE
Passed
A.2245-B Braunstein/S.2130-A Ramos – Enacts the Small Contractor Relief Act SUPPORT
Did not pass
A.3077 Dilan/S.2225 Ramos – Relates to modular construction work. SUPPORT
Did not pass
A.3800 Weprin/S.5231 Comrie – Establishes the crime of staging a construction site accident. SUPPORT
Did not pass
S.2523 Ramos/A.3996 Bronson – Establishes a jobs and housing pilot program to create jobs in the construction industry and address the housing crisis. SUPPORT
Did not pass
Other Important Bills that Passed the Legislature
The below bills, which we were also tracking for NYECA, passed both houses of the legislature and are currently awaiting delivery to the Governor for final action.
A.2730-A Barrett/S.4881-A Scarcella-Spanton – Requires contractors and subcontractors performing construction work for covered renewable energy systems to use apprenticeship agreements.
A.3279-A Vanel/S.4728-A Sanders – Establishes the NYS cryptocurrency and blockchain study task force.
A.8465 Otis/S.7485 Mayer – Prevailing wage for those involved in hauling concrete and asphalt.
A.8678 Burke/S.8405 Sepulveda – Extends the effectiveness of certain provisions relating to joint bidding on contracts for public work projects.
A.8679 Burke/S.8404 Sepulveda – Extends the effectiveness of certain provisions of the coordinated construction act for lower Manhattan relating to joint bidding on contracts for public work projects.
S.1218 Bailey/A.333 Cruz – Directs state agencies to develop a growth plan to increase participation of MWBEs with respect to state contracts and subcontracts.
S.3799-C Comrie/A.357-B Rajkumar – Access to adjoining property to make improvements or repairs.
S.5149 Comrie/A.5524 Jackson – Relates to the debriefing of certain contracts.
New Priority Bill Introductions
A.8900 Bronson – Relates to assessment rates for employers who have an established alternate dispute resolution. PRIORITY SUPPORT (and more on this in next month’s Power On).
If you have any questions or would like additional information on any New York State or New York City legislative matter, including copies of any legislation or regulations mentioned in this article, please contact Peter Rescigno or NYECA lobbyist Perry Ochacher at (914) 319-9173.