New York 2025-2026 Regular Session

New York Senate Bill S00792

Introduced
1/8/25  
Refer
1/8/25  
Engrossed
1/22/25  
Refer
1/22/25  
Engrossed
2/5/25  
Enrolled
2/12/25  
Chaptered
2/14/25  

Caption

Removes the requirement that a state call center contractor must hire employees of a former call center contractor whose contract is terminated unless provided in the contract; makes provisions of new law applicable only to the state and its public authorities or public benefit corporations.

Summary

This bill narrows and softens a 2024 labor law governing call center contracts for government work. It limits the law’s coverage to the State of New York and state public authorities or public benefit corporations, removing political subdivisions such as counties, cities, towns, and villages from the definition of “governmental body.” It also changes several mandatory protections for call center workers into discretionary ones, including the successor contractor’s obligation to retain incumbent employees, use seniority in filling positions, maintain a preferential hiring list, and require a written performance evaluation at the end of the 90-day transition period. The bill also revises procurement rules for government call center contracts. Instead of requiring agencies to include employee-retention obligations in solicitations and contracts, the bill allows them to require such terms. It likewise changes the worksite-accessibility provision from a requirement to a discretionary option, while preserving the concept that a successor contractor may be asked to locate work within 10 miles of the prior site unless the work is remote. The bill repeals section 793 of the prior law and renumbers section 794 as section 793, aligning the statute with the revised framework. In practical terms, the bill reduces the scope and enforceability of worker-protection rules for call center employees serving government contracts. It affects state labor law provisions governing successor contractors, subcontractors, and public procurement, and it may reduce the number of situations in which displaced call center workers are entitled to preferential hiring or transition protections. It also limits the law’s application to state-level entities, leaving local governments outside the revised statutory scheme. The overall sentiment reflected in the voting history suggests broad support, though not unanimity. The bill passed the Senate Rules Committee 18-3, the Senate floor 54-5, and the Assembly 144-1, indicating that most lawmakers accepted the bill’s narrower approach. The available record does not include committee debate transcripts, so the discussion context is inferred primarily from the strong bipartisan vote margins and the bill’s text. The main point of contention appears to be whether call center worker protections should be mandatory or optional, and whether they should apply broadly to local governments as well as state entities. Supporters of the bill likely favored flexibility for contracting agencies and contractors, while opponents may have objected to weakening job-retention protections and removing coverage for political subdivisions. The bill’s changes also suggest a policy dispute over balancing procurement flexibility against workforce stability for displaced call center employees.

Impact

The bill amends the Labor Law provisions governing government call center contracts by narrowing the definition of covered governmental bodies to the state, public authorities, and public benefit corporations, and by converting several mandatory successor-contractor obligations into permissive ones. It repeals one section of the prior 2024 enactment and renumbers the remaining section, thereby revising the statutory structure for call center worker protections in public contracting. The practical effect is to reduce mandatory retention and hiring protections for affected employees and to give contracting agencies and successor contractors more discretion in how they structure transition employment and site-location requirements.

Sentiment

The voting record indicates strong overall support for the bill, with large majorities in both chambers and only a small number of dissenting votes. That pattern suggests lawmakers generally favored the bill’s more flexible approach to government call center contracting. Because no committee transcript is available, there is no direct record of floor or committee arguments, but the vote margins imply limited organized opposition rather than a highly divisive measure.

Contention

The central controversy is the rollback of mandatory employee-retention protections for call center workers when government contracts change hands. Critics would likely focus on the shift from “shall” to “may,” which weakens successor contractors’ obligations to hire incumbent workers, use seniority, maintain preferential hiring lists, and provide certain transition protections. Another likely point of dispute is the bill’s exclusion of political subdivisions from the definition of governmental body, which removes counties, cities, towns, and villages from the law’s coverage. Supporters, by contrast, appear to favor greater procurement flexibility and reduced administrative burdens for state contracting entities.

Companion Bills

NY A02434

Same As Removes the requirement that a state call center contractor must hire employees of a former call center contractor whose contract is terminated unless provided in the contract; makes provisions of new law applicable only to the state and its public authorities or public benefit corporations.

Previously Filed As

NY A02434

Removes the requirement that a state call center contractor must hire employees of a former call center contractor whose contract is terminated unless provided in the contract; makes provisions of new law applicable only to the state and its public authorities or public benefit corporations.

NY S3131

Establishes registry of out-of-state contractors who are awarded public works contracts in this State.

NY A2078

Establishes registry of out-of-state contractors who are awarded public works contracts in this State.

NY A02052

Prevents the displacement of call center workers who provide call center services for the government in certain circumstances; provides protections for call center workers when contracts with call center contractors are terminated; requires new call center contractors to hire existing call center workers; protects collective bargaining agreements.

NY SB553

Professions and Businesses; repeal Chapter 14, relating to electrical contractors, plumbers, conditioned air contractors, low voltage contractors, and utility contractors and enact a new Chapter 14

NY HB1915

Establishes rules to govern contracts between contractors, subcontractors, and other parties to construction contracts

NY HB3166

Establishes rules to govern contracts between contractors, subcontractors, and other parties to construction contracts

NY A2079

Requires Division of Taxation conduct audits of out-of State contractors that have entered into State and private contracts.

NY S3132

Requires Division of Taxation conduct audits of out-of-State contractors that have entered into State and private contracts.

NY H740

Limit Contractor Liability in State Contracts

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