FINANCE

NEW YORK STATE SENATE FINANCE COMMITTEE — State labor and workforce development officials testified before the Legislature on Wednesday about Governor Kathy Hochul's 2025-2026 budget proposal, highlighting wage theft enforcement, apprenticeship expansion, and civil service hiring reforms. Department of Labor Commissioner Roberta Reardon reported that the state has recovered and disbursed more than $243 million in stolen wages since 2017, with nearly $34 million recovered last year for over 46,000 workers. She said the Governor's proposal to strengthen wage theft enforcement through liens and asset seizure will help return money directly to workers. The department is also seeking $10 million in new funding to expand registered apprenticeships, which currently serve 17,000 active apprentices in around 900 programs statewide, and $8 million for training in key industries including artificial intelligence and cybersecurity. Department of Civil Service Commissioner Timothy Hogues highlighted the success of the NY HELPS program, which waives entrance exams for most public jobs and has resulted in nearly 24,000 state appointments and 6,000 local government appointments since its 2023 launch. The department is opening 12 computer-based testing centers by the end of 2026 and undertaking a comprehensive study to modernize the civil service pay structure, which dates to the 1950s. Hogues also announced that NYSHIP health insurance members will see zero percent premium increases for the Empire Plan in 2025, thanks to a new five-year pharmacy benefit manager contract estimated to save $600 million annually. Governor's Office of Employee Relations Director Michael Volforte reported that four collective bargaining agreements covering law enforcement employees were negotiated over the past year, all including paid parental leave of 12 weeks at full pay. He said the office has increased tuition reimbursement caps to $5,000 for most employees and is implementing a voluntary payroll advance program for new state employees to address payroll lag issues. Workers' Compensation Board Chair Clarissa Rodriguez outlined the Governor's five-point plan to improve injured workers' access to medical care, including universal authorization of licensed healthcare providers and increased medical fee schedules. She announced that the minimum workers' compensation weekly benefit increased to $325 per week on January 1, more than double the amount from a decade prior. The board also reported a 22 percent decrease in assessment rates expected to save New York businesses approximately $191 million. Sen. Robert Jackson, chair of the Civil Service and Pensions Committee, asked all agency officials about their capacity to absorb federal government workers who were laid off, referencing the Governor's public call for these workers to come to New York State. GOER Director Volforte indicated the state has approximately 8,000 open positions available. The hearing was the 11th of 14 joint budget hearings conducted by the Senate Finance Committee and Assembly Ways and Means Committee on the Governor's proposed budget. NEW YORK STATE LABOR AGENCIES TOUT HIRING SURGE, FACE QUESTIONS ON SUSTAINABILITY State labor officials testified before the Legislature on Wednesday that they are prepared to absorb a potential wave of federal employees seeking work in New York, citing the success of the NY HELPS program that has streamlined state hiring. But lawmakers raised pointed questions about whether the state can retain these new workers and adequately enforce labor protections amid budget constraints. Department of Civil Service Commissioner Hogues reported that approximately 24,000 individuals have been appointed through the NY HELPS program at the state level, with an additional 6,000 at the local level. The program temporarily eliminates civil service exam requirements for entry-level positions while maintaining minimum qualification standards. Hogues emphasized that appointments do not equate to new employees, as some represent internal transfers, and that attrition rates have not increased significantly. Governor's Office of Employee Relations Director Volforte said state agencies have numerous vacancies and are welcoming applicants, including federal employees. "We've got so many vacancies that agencies are happy to have any influx of talent to consider," Volforte said. But lawmakers signaled concerns about long-term workforce stability. Assemblywoman Pheffer Amato raised alarm about the lack of promotional exams, noting that some positions have not held exams since 2005 or 2011. "We're hiring people, that's great. They're still in that beginning phase of being excited. But I really want to take care of those people to keep continuing to be into the system and not leave public service," she said. Department of Labor Commissioner Reardon faced tough questioning on multiple fronts. The UI trust fund faces a $6.3 billion deficit, with $8 billion needed to achieve solvency and raise benefits. Reardon said the fund will reach solvency in 2027 under the federal repayment schedule, but Assemblyman Harry Bronson pressed him on whether the state should explore legislative reforms to the funding formula to avoid future borrowing. On wage theft enforcement, Reardon reported $34 million recovered for over 46,000 workers. But Senator Jessica Ramos questioned whether the department has adequate investigators and asked for success rates on cases. She also expressed skepticism about proposed DOL authority to reduce child labor penalties, saying she feared "special treatment for anyone who's trying to break the law." Sen. Ramos also challenged GOER Director Volforte on workplace bullying, referencing a Public Employees Federation member's suicide and her vetoed anti-bullying bill (S4925). She noted that GOER maintains no centralized tracking of discipline across agencies. "So if I were to ask you which agency is the most toxic, you wouldn't be able to answer me," she said. Workers' Compensation Board Commissioner Rodriguez discussed system improvements, including elimination of 12 custom forms and new medical portals. But Assemblyman Bronson argued the real problem is form complexity and slow hearing timelines, not just provider authorization. On childcare, Senator Brisport pressed Reardon on the urgency of stabilizing the childcare workforce, citing the April 2024 Childcare Availability Task Force Report. Reardon acknowledged the crisis: many childcare workers with master's degrees earn barely above minimum wage, creating unsustainable churn in a workforce that is mostly women and immigrants. The hearing, held before the Senate Finance Committee on February 26, revealed a state labor apparatus attempting to manage multiple crises—federal employment disruptions, UI insolvency, wage theft, and childcare workforce collapse—while lawmakers questioned whether agencies have the tools, staffing, and accountability mechanisms to succeed. NEW YORK STATE SENATE FINANCE COMMITTEE — A joint legislative hearing on the 2025-2026 executive budget for labor and workforce development revealed significant challenges across multiple state agencies, with particular focus on a corrections officer staffing crisis and systemic problems in the unemployment insurance system. The most contentious exchange centered on corrections officers being recalled from workers' compensation and family medical leave with threats of losing health insurance if they don't return. Sen. Weik pressed agency officials on the legality of these actions, while Sen. Mattera sharply criticized DOL Commissioner Reardon for not doing enough to protect the workers, calling the situation "a disgrace." Commissioner Reardon testified that the unemployment insurance trust fund carries a $6.3 billion debt, with $8 billion total needed before benefits can be raised. He projected solvency by 2027 unless a recession occurs. However, he acknowledged a crisis in the UI call center, where phone traffic is running 3.5 times higher than pre-pandemic levels at comparable unemployment rates—a problem he attributed to broader societal changes in how people seek assistance. On childcare, Reardon confirmed that workforce shortages are directly causing reduced capacity, with programs serving 28,462 fewer children than their licensed capacity. He attributed this to staffing ratios required by law. Wage theft enforcement in construction emerged as another key issue. Assemblymember Durso pressed Reardon on why the Department of Labor operates on a complaint-driven model rather than proactively investigating job sites, particularly on Long Island. Reardon cited budget constraints and the sheer size of the construction industry, but said stronger enforcement tools—specifically property seizure authority—would make a "huge difference." On workers' compensation, Sen. Rhoads raised concerns about the Governor's proposal to increase provider participation, noting that the Medical Society and Injured Workers Bar Association oppose it because the real problem is administrative burden, not provider availability. WCB Chair Rodriguez acknowledged the authorization process is "antiquated" and predates the internet. Civil Service Commissioner Hogues reported 8,000 open positions and discussed recruitment efforts, including the HELPS program that temporarily eliminated civil service exam requirements for entry-level positions. However, she acknowledged that current employee benefits communication is not reaching workers as hoped. Assemblymember Jacobson, a former workers' compensation judge, cited a Resume Builder survey showing over 40 percent of jobs posted in 2024 don't actually exist, and introduced legislation to require restrictions on job posting timelines. The hearing, held Feb. 26, highlighted persistent workforce challenges across state government and the private sector, with agency officials generally requesting stronger enforcement tools and legislative support for their proposals. NEW YORK STATE SENATE FINANCE COMMITTEE — State labor officials faced pointed questioning Wednesday about corrections officer safety, wage theft enforcement, and workforce recruitment during a joint legislative hearing on the 2025-2026 executive budget. Senator O'Mara challenged the Department of Labor and other agencies for failing to address unsafe working conditions in state prisons, citing a documented 50 percent increase in inmate-on-staff assaults and an 80 percent increase in inmate-on-inmate assaults since the HALT law took effect in 2022. He questioned why corrections officers are required to work mandatory double shifts of up to 24 hours and asked why DOL has not engaged on these labor issues. DOL Commissioner Reardon responded that prison conditions fall under another agency's jurisdiction, drawing criticism from O'Mara, who said the agencies are "passing the buck" on a crisis affecting officer safety and mental health. Senator Rolison raised concerns about stress on corrections officers' families, noting he met with more than 30 family members from across the state. He asked whether the Governor's Office of Employee Relations is equipped to meet their mental health needs. On wage theft, Assemblywoman Simon questioned the effectiveness of enforcement, noting that a July press release cited $63 million recovered for 65,000 workers—averaging under $1,000 each. She pressed Reardon on staffing levels needed to investigate a significant portion of wage theft claims. Reardon defended the recovery efforts, citing an example of one worker who recovered $122,000 in back wages. Chairwoman Krueger shifted focus to federal employee recruitment, proposing aggressive social media campaigns to attract laid-off federal workers, including park rangers. She asked about potential benefits transfers and extra hiring points for federal employees. DCS Commissioner Hogues described expanded marketing efforts using social media, billboards, and LinkedIn, as well as the HELPS program, which temporarily eliminates minimum qualification requirements for certain positions. Assemblywoman Giglio advocated for expanded workforce training at community colleges, citing programs at Mohawk Valley Community College in trades like plumbing, welding, and HVAC. She referenced Denmark's model where 95 percent of the population works or attends school until age 70. The hearing also addressed civil service modernization, unemployment insurance system upgrades in testing phase, and paid family leave eligibility for state employees. GOER Director Volforte confirmed state employees qualify for paid family leave and noted that GOER negotiated 12 weeks of paid parental leave for birth, adoption, and foster-care placement. Chairman Pretlow noted that wage inspector salaries, averaging $47,000-$49,000, have not increased since 2010 despite a 46 percent rise in the Consumer Price Index. Reardon explained that civil service wage adjustments require Department of Civil Service audits and are not within his direct authority. New York State faces a critical workforce crisis driven by chronic understaffing, dangerous working conditions, and inadequate compensation, according to testimony at a joint legislative hearing on the 2025-2026 labor budget held February 26. Public employee unions and retiree advocates painted a dire picture of state agencies struggling to retain workers despite recent hiring efforts. The state spent $1.2 billion on overtime last year, with 70 percent concentrated in corrections, child welfare, mental health, and developmental disability facilities, according to Randi DiAntonio, vice president of the Public Employees Federation, which represents 54,000 state workers. DiAntonio testified that staff are facing "assaults, rapes, exposure to illegal drugs, bodily fluids" in state facilities, describing the situation as "indicative of a broken system." Joshua Terry of the Civil Service Employees Association noted that 50 percent of DMV license examiners have experienced workplace violence. The hearing revealed a paradox: while the state hired 17,000 new employees in 2023, it lost 15,500 through retirements and separations, resulting in minimal net gains. Commissioner Hogues reported reducing vacancies from over 15,000 in June 2022 to 8,000 currently, but testified that post-pandemic staffing challenges persist, particularly in recruiting test monitors for civil service exams. Legislators pressed agency officials on multiple fronts. Sen. Jackson urged resolution of expired union contracts for State Police investigators and graduate students, and expressed concern about the ongoing correctional officers' strike. Assemblyman Bronson criticized the Governor's veto of workplace violence prevention legislation and questioned whether the Department of Labor is adequately enforcing safety standards for state employees. Retired Public Employees Association President Diana Hinchcliff testified that the average state pension is $28,000, with 70 percent of retirees receiving less than $40,000 annually. She urged restoration of Medicare Part B reimbursement eliminated in the Executive Budget and an increase to the cost-of-living adjustment, unchanged since 2000 despite cumulative inflation of 87 percent. Union representatives identified Tier 6 pension reforms—particularly standardizing contribution rates and reducing early retirement penalties—as critical to retention. Sen. Weik sought specific answers on these issues, while multiple legislators emphasized that worker safety and respect are essential to keeping employees in state service. NEW YORK STATE SENATE FINANCE COMMITTEE — Labor and workforce development dominated a joint legislative hearing on the 2025-2026 executive budget, with union representatives, worker advocates, and manufacturers presenting competing priorities for state spending and policy. Public employee retention emerged as a critical concern, with the Civil Service Employees Association and Public Employees Federation highlighting systemic failures in workplace safety and compensation. Josh Terry of CSEA called for Tier 6 pension reform, arguing that requiring workers to labor until age 63 is unsustainable for physically demanding jobs like sanitation and firefighting. He noted that Air National Guard firefighters, who earned $45,000-$50,000 starting salary, worked $3 million in overtime last year while municipalities offered $60,000-$70,000 to compete for the same talent. Randi DiAntonio of PEF presented harrowing testimony about workplace violence in state facilities. She described employees being sexually assaulted and then returned to work in the same units where the assault occurred, and detailed how many state facilities have non-functional alarm systems and lack body scanner technology that could prevent weapons from entering. "Most often not" do agencies move employees or patients to different units after assault, DiAntonio said, signaling systemic indifference to worker safety. Wage theft enforcement dominated testimony from worker advocates. Jaron Benjamin of Popular Democracy in Action and Hugh Baran of the National Employment Lawyers Association both urged the Legislature to include the EmPIRE Worker Protection Act in the budget. The act would generate an estimated $103 million annually for the Department of Labor by allowing workers and unions to file public enforcement actions for wage violations. Benjamin cited Governor Hochul's wage theft crackdown, which recovered $63 million for nearly 65,000 workers over two years, as evidence of the scale of the problem. Baran noted that New York DOL has only 129 labor standards investigators—fewer than half the number in the 1960s—leaving the state unable to address an estimated $3 billion in annual wage theft. Manufacturers presented a different workforce challenge. Michael Frame of MACNY highlighted the Manufacturers Intermediary Apprenticeship Program, which served nearly 200 apprentices last year with 60 percent from underrepresented populations. He requested level-funding for MIAP and $1 million to expand the Real Life Rosies pre-apprenticeship program for women, citing projections of 71,000 new manufacturing jobs by 2030 and a potential skills gap of over 100,000 positions. Senators pressed witnesses on specific concerns. Sen. Weik sought clarity on whether recalling DOCCS workers from workers' compensation is legal, expressing frustration that witnesses were "dodging the bullet." Sen. Rolison questioned PESH's staffing capacity and responsiveness to workplace safety complaints. Sen. Mattera expressed strong support for union priorities and asked detailed questions about BOCES workforce development coordination. The hearing reflected broader tensions in New York's labor policy: public sector retention crises, inadequate enforcement of existing worker protections, and competition for skilled workers in emerging industries. New York State legislators heard testimony on February 26 about the 2025-2026 Executive Budget's labor and workforce development proposals, with advocates pressing for stronger worker protections and funding for job training programs while a think tank researcher challenged the adequacy of the governor's unemployment insurance proposal. The hearing, held jointly by the Senate and Assembly Finance committees, featured testimony on wage theft enforcement, apprenticeship programs, workforce reentry initiatives, digital equity, educator shortages, and unemployment insurance reform. Hugh Baran of NELA New York and Jaron Benjamin urged lawmakers to include the EmPIRE Act in the state budget, arguing it would protect workers from retaliation when reporting wage theft. Baran identified construction, restaurants, food service, hospitality, and home care as industries most affected by wage theft. He also opposed the governor's proposal to weaken weekly pay protections for manual laborers under Labor Law Section 191, saying it would "retroactively immunize employers from violations." Jim Martin of the Association of Community Employment Programs for the Homeless requested $500,000 in state funding for workforce development programs serving individuals with histories of homelessness, addiction, and incarceration. Martin reported that 72 percent of ACE participants secured full-time employment over five years, with 66 percent remaining employed one year after placement. Ellie Fitzgerald of TEACHMEducation Services requested $8 million for educator apprenticeship programs, citing New York officials' estimate of needing 180,000 new teachers in the next decade and a 53 percent drop in teacher program enrollment over the last decade. James Parrott of the Center for New York City Affairs at The New School challenged the governor's proposal to spend $165 million on unemployment insurance interest payments, calling it insufficient. He noted the UI trust fund debt stands at $6.4 billion and has declined only $2 billion over two years. Parrott proposed comprehensive reform including raising the taxable wage base from $12,800 to $100,000 and implementing a temporary surcharge to shift the tax burden from small businesses to larger employers in finance, tech, and media. Assemblyman Harry Bronson questioned Parrott's math on the governor's claim the debt would be paid off by 2027, saying "the math doesn't work." Assemblywoman Pheffer Amato, a former small business owner, highlighted the burden unemployment insurance taxes place on restaurants and other small employers. Sen. Rhoads raised concerns about worker safety in state correctional facilities, citing a 50 percent increase in inmate-on-worker violence and 80 percent increase in inmate-versus-inmate violence since the HALT Act, and criticized the Department of Labor for taking no action despite these conditions.