New legislation seeks to deny state economic incentives to employers that have been found to have engaged in unfair labor practices under the National Labor Relations Act, also known as Article 20 of New York labor law. 

Assemblymember Jon Rivera announced the new legislation, which would “ensure that taxpayer-funded programs meant to spur job creation and economic development do not reward corporations that violate federal and state labor laws or retaliate against workers seeking to organize.”

Under the legislation, any employer found to have violated Article 20 of New York labor law, or the NLRA, which guarantees workers the right to organize, collectively bargain and engage in protected union activity, would be deemed ineligible for state incentives such as tax credits, property tax abatements, and grants until matters have been resolved at the next annual compliance deadline.

“New York’s economic development programs are designed to create good jobs and strengthen our communities, not to subsidize corporations that trample on workers’ rights. If a business is caught engaging in union-busting or retaliation against workers exercising their legal rights, it should not be rewarded with taxpayer dollars. This legislation is about fairness, accountability, and sending a clear message: New York stands with its workers,” Rivera said.

The bill would also establish a notification system to ensure that appropriate state agencies are made aware when a business has been charged with or found to have committed an unfair labor practice, closing a loophole that currently allows violators to continue receiving economic benefits.

The Western New York Area Labor Federation, AFL-CIO, is currently reviewing the legislation.