Senate Finance Committee and Assembly Ways and Means Committee
Wire Brief
New York State lawmakers heard testimony Wednesday on Governor Hochul's proposed 2025-2026 budget for labor and workforce development, with agency officials and advocates highlighting both progress and persistent challenges in recruitment, retention, and worker protections.
The Department of Labor reported recovering $34 million in stolen wages for 46,000 workers last year—part of $243 million recovered since 2017—but acknowledged this represents only a fraction of the estimated $3 billion in annual wage theft. Commissioner Roberta Reardon requested legislative approval of the Governor's proposal to give DOL authority to seize assets and levy liens against wage thieves, calling it essential enforcement power.
The state faces an 8,000-position vacancy crisis across agencies. The Department of Civil Service's NY HELPS program, which temporarily waives civil service exams, has resulted in 24,000 state appointments and 6,000 local government appointments. However, union representatives and workforce advocates warned that hiring without addressing retention will fail. The Public Employees Federation reported the state spent $1.2 billion on overtime in 2024, with 70 percent coming from corrections, child welfare, mental health, and developmental disability facilities—settings plagued by staffing shortages and documented safety concerns.
Corrections emerged as a flashpoint. Multiple senators pressed agency officials on whether the state's practice of recalling workers on workers' compensation leave or family medical leave is legal, and whether the Department of Labor should be investigating unsafe conditions in prisons. Commissioner Reardon said workplace safety in corrections is primarily a DOCCS responsibility, drawing sharp criticism from Sen. Thomas O'Mara, who noted a 50 percent increase in inmate-on-staff assaults since the HALT Act took effect in 2022.
On unemployment insurance, economist James Parrott challenged the Governor's proposal to spend $165 million paying interest on the trust fund debt, calling it insufficient. The fund owes $6.4 billion to the federal government. Parrott proposed raising the taxable wage base from $12,800 to $100,000 and restructuring the tax system to shift burden from small employers in hospitality and construction to large, profitable firms in finance and tech.
Workers' compensation board officials announced improvements: hearing times down 30 percent, minimum weekly benefits increased to $325 (more than double the 2014 level), and a 22 percent decrease in employer assessment rates expected to save businesses $191 million. The board proposed universal authorization of healthcare providers to treat injured workers, though some attorneys warned this could overwhelm providers unfamiliar with the system's complexity.
Advocates pushed for the EmPIRE Worker Protection Act, which would allow workers and unions to sue employers for wage theft violations, generating an estimated $103 million annually for DOL enforcement. The bill has support from 61 Assembly members and 29 senators. Opponents of the Governor's proposal to weaken weekly pay protections for manual laborers also testified.
Workforce development programs showed promise. The Manufacturers Association reported its apprenticeship program served 200 apprentices with 60 percent from underrepresented populations, and its Real Life Rosies program for women in manufacturing achieved 79 percent employment in 2024. Educators testified about a crisis requiring 180,000 new teachers over the next decade, proposing $8 million in registered apprenticeship funding.
The hearing underscored tensions between agency capacity and legislative expectations. While officials touted modernization efforts—new testing centers, digitized systems, expanded apprenticeships—lawmakers questioned whether these initiatives address root causes of workforce instability: low wages, unsafe conditions, inadequate pensions, and insufficient enforcement resources.
Topic Summary
This joint hearing examined Governor Hochul's proposed 2025-2026 budget for the Department of Labor, Department of Civil Service, Governor's Office of Employee Relations, and Workers' Compensation Board. Key topics included workforce recruitment and retention amid 8,000 state vacancies, the NY HELPS program, wage theft enforcement, unemployment insurance trust fund solvency, workplace safety in state facilities (particularly corrections), and various workforce development initiatives.
Testimony (15)
Roberta Reardon
agency_official
supportive
New York State Department of Labor, Commissioner
Commissioner Reardon testified on DOL's efforts in wage theft recovery, workforce development, and child labor protections. She highlighted that since 2017, the department recovered $243 million in stolen wages, with $34 million recovered last year for 46,000 workers. She discussed the Governor's proposal to strengthen wage theft enforcement through liens and asset seizure, expansion of registered apprenticeships with $10 million in new funding, and digitization of working papers. She also addressed unemployment insurance trust fund debt of $6.3 billion and the need for enforcement tools.
Timothy Hogues
agency_official
supportive
New York State Department of Civil Service, Commissioner
Commissioner Hogues discussed the NY HELPS program, which has resulted in nearly 24,000 state-level appointments and 6,000 local government appointments. He highlighted the opening of 10 Centers for Careers in Government and plans for 12 computer-based testing centers by end of 2026. He discussed efforts to modernize civil service, including updating minimum qualifications to allow experience to substitute for college degrees, and a comprehensive compensation study to modernize the pay structure dating to the 1950s.
Michael Volforte
agency_official
supportive
New York State Governor's Office of Employee Relations, Director
Director Volforte discussed collective bargaining agreements negotiated over the past year, including paid parental leave benefits providing 12 weeks at full pay. He highlighted initiatives to make life more affordable for state employees, including elimination of the five-day salary deferral program, increased tuition reimbursement caps (up to $5,000 for many bargaining units), and a voluntary payroll advance program for new employees. He also discussed diversity, equity and inclusion training and pre-tax benefit programs with over 22,000 enrollments.
Clarissa Rodriguez
agency_official
supportive
New York State Workers' Compensation Board, Chair and Commissioner
Chair Rodriguez discussed the Workers' Compensation Board's modernization efforts and the Governor's five-point plan to improve injured workers' access to medical care. She highlighted the OnBoard business modernization program, expansion of case indexing (tripling the number of indexed cases), and improvements in hearing timelines (reduced by more than 30 percent). She discussed increased minimum workers' compensation benefits ($325/week minimum as of January 1) and a 22 percent decrease in assessment rates expected to save businesses $191 million.
Joshua Terry
advocate
supportive
CSEA Local 1000 AFSCME, AFL-CIO, Legislative Director
Terry testified on behalf of CSEA regarding recruitment and retention of public-sector workforce. He expressed support for extending NY HELPS and waiving civil service exam fees, but noted these are Band-Aids not long-term solutions. He advocated for pension reform for firefighters at Division of Military and Naval Affairs, increased work-zone safety measures including speed cameras, and protections for DMV license examiners who face workplace violence (50 percent have experienced it).
Randi DiAntonio
advocate
opposed
New York State Public Employees Federation (PEF), Vice President
DiAntonio testified on behalf of PEF representing 54,000 public employees. She characterized recruitment and retention as a complete crisis with 8,000 vacancies. She highlighted that the state spent $1.2 billion on overtime in 2024, with 70 percent from DOCCS, OCFS, OMH, and OPWDD. She described dangerous conditions including assaults, rapes, and exposure to illegal drugs. She criticized the implementation of criminal justice reforms (HALT, Less is More, Raise the Age) without adequate resources or staff input.
Barbara Zaron
advocate
neutral
Organization of NYS Management Confidential Employees (OMCE), President
Zaron testified on behalf of OMCE representing 11,000 management/confidential employees who are prohibited by law from joining a union. She expressed concerns about compensation not being comparable with union-negotiated salaries of subordinates or colleagues. She opposed elimination of state subsidy for IRMAA and expressed concerns about the transformation of the merit system. She supported continuing waiver of civil service exam fees but found the HELPS program extension problematic.
Diana Hinchcliff
advocate
opposed
Retired Public Employees Association, President
Hinchcliff testified on behalf of RPEA representing almost 500,000 New York State and local government retirees. She advocated for three priorities: restoring Medicare Part B income-related monthly adjustment amount (IRMAA) reimbursement, increasing the pension cost-of-living adjustment (COLA), and requiring parity between Medicare-primary and non-Medicare Empire Plan enrollees for skilled nursing facility coverage. She noted the average pension is $28,000 with half receiving under $30,000.
Jaron Benjamin
advocate
supportive
Popular Democracy in Action, Deputy Chief of Campaigns
Benjamin testified in support of the EmPIRE Worker Protection Act, which he argued should be included in the budget as a revenue raiser contributing $103 million annually to DOL's budget. He highlighted that DOL recovered $63 million in stolen wages for 65,000 workers over two years, representing only a fraction of billions stolen annually. He noted that in 1966 DOL had over 300 labor inspectors, declining to 115 by 2017. He cited California's PAGA law generating average of $98 million yearly.
Michael Frame
industry
supportive
Manufacturers Association of New York (MACNY), Executive Vice President
Frame testified on behalf of MACNY and eight partner organizations regarding workforce strategies in manufacturing. He highlighted the Manufacturers Intermediary Apprenticeship Program (MIAP) which has served nearly 200 apprentices with 60 percent from underrepresented populations. He discussed the Real Life Rosies pre-apprenticeship program for women in advanced manufacturing with 80 percent completion rate and 79 percent employment rate in 2024. He requested level-funding for MIAP and $1 million to expand Real Life Rosies.
Hugh Baran
advocate
supportive
National Employment Lawyers Association/New York, Board Member
Baran testified on behalf of NELA-NY regarding worker protections and enforcement. He described a triple threat to workplace rights: federal labor enforcement being stripped, anti-immigrant climate deterring workers from asserting rights, and forced arbitration with class-action waivers. He noted that more than 80 percent of private-sector non-union workers are denied right to collectively enforce rights. He advocated for the EmPIRE Worker Protection Act and opposed the Governor's proposal to gut manual laborers' weekly pay protections.
Jim Martin
advocate
supportive
Association of Community Employment Programs for the Homeless (ACE), Executive Director
Martin testified on behalf of ACE, which serves New Yorkers with histories of homelessness, addiction and incarceration. He requested $500,000 in FY26 budget ($400,000 for paid work experience, $100,000 for legal services). He noted that of the 2024 cohort, 85 percent had addiction history, 62 percent had mental health conditions, 58 percent were chronically homeless, and 95 percent were justice-involved. He reported 72 percent of participants secured full-time employment over five years, with 66 percent employed one year after.
Annmarie Lanesy
advocate
supportive
CanCode Communities, CEO and Founder
Lanesy testified on behalf of CanCode Communities regarding digital equity in workforce development. She noted that 92 percent of all jobs require digital skills. She highlighted concerns about insufficient federal funding ($36 million expected from NTIA) and delays in distribution. She requested release of already-secured federal funds: $15 million from 2021 budget through NYSED and $10 million from 2022 capital projects funds for digital inclusion programs.
Ellie Fitzgerald
advocate
supportive
TEACHMEducation Services, Project Manager
Fitzgerald testified on behalf of TEACHMEducation Services regarding educator workforce crisis. She noted New York State needs over 180,000 new teachers in the next decade, with 53 percent drop in program enrollment over the last decade due to prohibitive costs. She advocated for registered apprenticeship model for educators and requested $8 million in appropriations: $5 million categorical state aid for pilot year, $2 million for special education teacher expansion, and $1 million for Educator Workforce Development HUB.
James Parrott
academic
opposed
Center for New York City Affairs at The New School, Director of Economic and Fiscal Policies
Parrott testified on the state's Unemployment Insurance Program, opposing the Governor's proposal to use $165 million to pay interest payments. He characterized it as insufficient and argued the UI system needs solvency, tax fairness, and benefit adequacy. He noted the trust fund debt was $6.4 billion and at current repayment rates would take until 2030 to pay off. He proposed a temporary UI debt pay-down surcharge with $100,000 taxable wage base and 0.5 percent tax rate to pay off debt by September 2028.
Senator Engagement (9)
| Senator | Engagement | Stance | Focus Areas | Summary |
|---|---|---|---|---|
| Sen. Alexis Weik | high | skeptical | Civil service budget adequacy for recruitment and testing Corrections officer rehiring of retirees Legality of recalling workers on workers' compensation or family leave Tier 6 pension reform specifics Employee retention strategies | Sen. Weik asked practical questions about civil service modernization funding and corrections staffing solutions. She pressed repeatedly on the legality of recalling workers on protected leave and sought specific Tier 6 reform priorities. |
| Sen. Christopher Ryan | moderate | supportive | Stillbirth leave policies Wage theft enforcement tools and appeal processes Civil service wage competitiveness study progress | Sen. Ryan raised concerns about stillbirth leave not being covered and asked about wage theft enforcement mechanisms. He expressed support for increasing state employee wages and requested updates on the wage competitiveness study. |
| Sen. Jabari Brisport | moderate | supportive | Childcare workforce crisis and wage stabilization Childcare capacity reduction due to staffing shortages | Sen. Brisport asked about the childcare workforce crisis and the need for permanent funding to supplement wages. He noted that workforce shortages are causing decreased childcare capacity and suggested taxing the rich to fund universal childcare. |
| Sen. Jessica Ramos | high | skeptical | Uber and Lyft UI settlement compliance Federal funding cuts preparedness Wage theft recovery percentages and investigator staffing Bilingual investigator availability Child labor enforcement Workplace bullying and toxic work environments Workers' compensation pharmacy access and medication disputes | Sen. Ramos asked pointed questions about wage theft enforcement effectiveness, federal funding vulnerabilities, and workplace safety issues. She expressed concern about the DOL's authority to reduce penalties for child labor violations and advocated for stronger protections for injured workers accessing medications in the workers' compensation system. |
| Sen. Mario Mattera | high | opposed | Corrections officer family support and insurance loss Department of Labor engagement with corrections crisis Illegal immigrant hiring restrictions for union contractors Unemployment rate and workforce education BOCES program partnerships | Sen. Mattera was critical of the DOL's lack of direct engagement with corrections officers facing insurance loss, calling it a disgrace. He also raised concerns about immigration status restrictions on union hiring and questioned workforce education efforts. |
| Sen. Peter Oberacker | low | unclear | Sen. Oberacker was present but did not ask questions during the hearing. | |
| Sen. Robert Jackson | high | supportive | Federal employee hiring and transition to state employment NY HELPS program effectiveness Unemployment insurance applications and processing times Workers' compensation impact on federal employees NY HELPS program retention and satisfaction metrics | Sen. Jackson asked detailed questions about how state agencies would absorb federal employees being laid off, focusing on practical implementation through NY HELPS and other programs. He also inquired about unemployment insurance processing and workers' compensation impacts, and requested follow-up data on NY HELPS retention. |
| Sen. Steven Rhoads | high | skeptical | Workers' compensation provider participation barriers Medical fee schedules and administrative burden Health insurer payment for disputed workers' compensation claims Corrections officer workplace safety and legal status of recall orders Department of Labor enforcement of workplace safety standards | Sen. Rhoads questioned whether the Workers' Compensation Board's proposals would actually address provider participation barriers, noting that administrative burden and low fees are the real issues. He also pressed on the legality of recalling workers on workers' compensation or FMLA leave. |
| Sen. Thomas O'Mara | high | opposed | Corrections officer workplace safety and HALT Act impacts Double and triple shift requirements and labor law violations Department of Labor engagement in prison safety Hiring Pennsylvania residents as correction officers Criminal justice reform legislation consequences | Sen. O'Mara was highly critical of the DOL's lack of engagement with corrections officer safety issues, arguing that extended shifts and unsafe conditions violate labor laws. He blamed criminal justice reforms (particularly HALT) for exacerbating conditions and called for more proactive DOL involvement. |