Labor Day Message from NYS Comptroller DiNapoli

Labor Day Message from NYS Comptroller DiNapoli

On the first Monday in September each year, we gather to honor the contributions that American workers have made to our country’s economic strength, cultural vitality and democratic way of life. The tradition of celebrating Labor Day began in New York City in 1882 and quickly spread throughout the country; the U.S. Congress passed a law establishing Labor Day as a federal holiday in 1894. Then as now, people marked the occasion with parades and picnics, savoring the last days of summer in the company of friends and family.

As we pause from our own labors this September 2nd, we have an opportunity to reflect on all that working men and women have achieved through the generations in building this nation we love. I wish you all a joyful and refreshing Labor Day.
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Employee disciplined for off-duty misconduct

Employee disciplined for off-duty misconduct

OATH Index No. 1304/13

An OATH Administrative Law Judge ruled that a New York City correction officer was subject to disciplinary action because there was a sufficient nexus between the employee's fraudulent off-duty misconduct and his position with the New York City Department of Correction. 

Disciplinary charges were filed against a correction officer who had pled guilty to operating a home improvement business without a license. The officer had been arrested and indicted on charges of grand larceny in the third degree, a class D felony, and

petit larceny, a class A misdemeanor. He subsequently entered a guilty plea to a violation of the New York City Administrative Code.

ALJ Ingrid M. Addison found that the correction officer used the name and license number of a corporation with which he was not affiliated to hold himself out as a licensed contractor, contracted with a home owner, took a $35,000 advance, and failed to perform the work under the contract. 

The ALJ also found that the correction officers off-duty conduct “violated the Department’s rules and was of a nature to bring discredit upon the Department [and] his conduct [bore] a nexus to his job as a correction officer.

Noting that the officer made restitution to the home-owner “only when he faced significant jail time,” Judge Addison recommended termination of the officer’s employment. 

The decision is posted on the Internet at:

http://archive.citylaw.org/oath/13_Cases/13-1304.pdf

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IRS announces it will treat same-sex marriages the same as heterosexual ones

IRS announces it will treat same-sex marriages the same as heterosexual ones

Source: Washington Post National News Alert

The Treasury Department and Internal Revenue Service announced on Thursday that they would treat legal same-sex marriages the same as heterosexual marriages for federal tax purposes. 

The new policy, which comes in response to a June Supreme Court ruling that overturned a key portion of the Defense of Marriage Act, allows same-sex spouses to file tax returns as married couples regardless of whether they live in jurisdictions that recognize gay unions.

Read more at:
http://www.washingtonpost.com/blogs/federal-eye/wp/2013/08/29/irs-to-treat-same-sex-marriages-equally-for-tax-purposes/
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Correction officers disciplined after being found guilty of using unnecessary force against an inmate

Correction officers disciplined after being found guilty of using unnecessary force against an inmate

OATH Index Nos. 734/13

The New York City Department of Correction brought charges against two correction officers alleging they used of excessive or unnecessary force against an inmate.

The Department charged that one officer struck the inmate in the face and the other pulled the inmate’s legs out from under him, causing him to fall to the ground.

The Department also charged the two officers with submitting false or misleading statements during Mayoral Executive Order [MEO] 16 interviews. Three other officers were also charged with filing false and/or misleading MEO 16 statements. 

OATH Administrative Law Judge Astrid B. Gloade found that all the charges were sustained.

Noting that most of the officers had no prior disciplinary record, ALJ Gloade recommended suspensions of 60 days for the officer who struck the inmate, 25 days for the officer who caused the inmate to fall; and 15- and 20-day suspensions for those who filed false reports.

The decision is posted on the Internet at:

http://archive.citylaw.org/oath/13_Cases/13-734.pdf
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Private sector prevailing wage rates and the public sector

Private sector prevailing wage rates and the public sector

OATH Index No. 126/13

OATH Administrative Law Judge Alessandra F. Zorgniotti commenced her analysis of this complaint filed by The International Brotherhood of Teamsters (Local 237) by citing §220(3)(a)] of the New York State Labor Law. This provision requires public employers, including the City of New York, to pay “laborers, workmen, or mechanics” in its employ the prevailing rate of wages and supplemental benefits paid in the private sector “for a day’s work in the same trade or occupation in the locality” where the work is performed.

Although the statute refers to the rates paid in the “same” trade or occupation, courts have recognized that a comparison may be made to workers doing similar jobs. The City’s Comptroller was thus required to determine the prevailing rate of wages paid to those workers whose trade or occupation was “comparable” to city-employed maintenance workers.

Local 237's complaint sought a determination of the prevailing wages and benefits for elevator mechanics, supervisor elevator mechanics, and elevator mechanic helpers employed by the City should be that set by the Elevator Manufacturers Association of New York and the International Union of Elevator Constructors Local Union No.1. 

The Comptroller had made a preliminary determination that elevator mechanics and their supervisors should be paid the same as comparable private sector titles covered by the Local 1 contract and that helpers should be paid the same as helpers covered by the contract between the Elevator Industries Association, Inc.and the International Brotherhood of Electrical Workers Local 3.  

Judge Alessandra F. Zorgniotti upheld the Comptroller’s preliminary determination finding that because Local 1 was the prevailing union and had comparable titles, elevator mechanics and supervisors should be paid at Local 1 rates. 

The ALJ noted that as there was no comparable permanent helper title in Local 1, the helpers were properly found to be comparable to the Local 3 helpers.  

The decision is posted on the Internet at:

http://archive.citylaw.org/oath/13_Cases/13-126.pdf
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Employer pension contribution rates announced for fiscal year 2014-15

Employer pension contribution rates announced for fiscal year 2014-15

Source: Office of the State Comptroller

On August 27, 2013, Comptroller Thomas P. DiNapoli reported that employer contribution rates for the New York State and Local Retirement System will decline slightly in Fiscal Year 2014-15.

The average contribution rate for the Employee Retirement System (ERS) will decrease by 0.8 percent of payroll, from 20.9 percent to 20.1 percent. The average contribution rate for the Police and Fire Retirement System (PFRS) will decrease by 1.3 percent of payroll, from 28.9 percent to 27.6 percent.

“The New York State Common Retirement Fund’s strong gains over the last four years have mitigated some of the impact of the financial market collapse of 2008-2009,” DiNapoli said. “Strong investment performance, along with a revision in actuarial smoothing, has lowered the employer contribution rate for 2014-15.”

Employer rates are determined based on actuarial assumptions recommended by the Retirement System’s actuary and approved by DiNapoli.

The Retirement System’s actuary recommended a change based on a recommendation from Buck Consultants, LLC, as part of an independent actuarial review which is performed every five years. The previous method separated assets into equities and non-equities, while the new method expects the entire fund to earn the assumed rate of return and smoothes any unexpected gains or losses. According to Buck, the new method is generally used by the majority of public pension systems nationwide.

In 2012, DiNapoli directed the Retirement System to give employers access to a full projection of their annual pension bill by September 1, six weeks earlier than in previous years. Employers use this projection for preparation of their local budgets and calculation of tax levies subject to the property tax cap effective for fiscal years that begin in 2014.

Projections of required contributions will vary by employer depending on factors such as retirement plans, salaries and the distribution of their employees among the six retirement tiers. The employer contribution rates announced today will apply to each employer’s salary base during the period of April 1, 2014 through March 31, 2015. Payments based on those rates are due by February 1, 2015, but may be pre-paid on December 15, 2014.

N.B. The property tax cap generally limits the amount a government entity can increase its annual tax levy to two percent or the rate of inflation, whichever is less. The cost of pensions above a change in the average contribution rate by more than two percentage points is excluded from the tax cap. Since the ERS and PFRS rates have declined, there will not be any exclusion for this period.
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