The phased-in, gradual reduction in the overtime pay threshold will begin on January 1, 2024, with the threshold set at 56 hours. The process will continue with the overtime threshold limit reducing by 4 hours every other year until reaching 40 hours in 2032.

Beginning in 2020, the Farm Laborers Wage Board held public hearings to gather testimony from farm owners, workers, advocacy groups, and academic researchers. A majority of the comments were in favor of not lowering the threshold and came primarily from farm owners, who said that the change could cause the collapse of not only their family-run business but the industry at large.

Civil and labor rights experts and advocates argued that farm workers should be entitled to a 40-hour work week like the rest of the workforce.

Governor Kathy Hochul and the New York State Legislature enacted new tax credits to assist farm employers to ease the implementation of the lower overtime standard.

These include increasing the Investment Tax Credit from 4 percent to 20 percent for farm businesses, providing an encouragement for potential automation of farm production.

The Farm Workforce Retention Tax Credit was increased to $1,200 per employee to provide near-term relief to farmers.

A refundable tax credit was established for overtime hours paid by farm employers at the level established by the new regulation up to 60 hours.

State Senator George Borrello issued a statement saying, “While not a surprise, the Commissioner of Labor’s final approval of the recommendation to lower the farm worker overtime threshold to 40 hours per week ends any hope that facts and common sense might somehow prevail on this issue.

We fought long and hard against this decision for more than two years. However, it became apparent during the process that the ‘decision’ had been made before a single hearing was held.

Our farmers are among the growing list of casualties of the politically driven agenda that governs every consequential action here in New York State. The costs of this decision will go beyond the balance sheet. Family legacies, rural economies and the strength of our food supply chain will be impacted by this historically bad decision in the years ahead.”

For more information about the new regulations, visit the Farm Laborers Wage Board website at https://dol.ny.gov/farm-laborers-wage-board

The board voted 2 to 1 Tuesday to lower the threshold from the current 60 hours per week to 40 hours per week over 10 years.

New York Farm Bureau President David Fisher was the sole no vote on the final report on the overtime threshold, saying the report is not a full and accurate depiction of the data and testimony gathered during the two-year long process. He said it includes a lack of significant economic data as well as detailed testimony from farmers, farm workers, and agricultural experts.

Senator Borrello issued a statement saying, “It was unfair and unethical of the Legislature’s majorities and New York’s former governor to require this decision of three unelected individuals, two-thirds of whom lack any agriculture background. While well-meaning individuals, these board members are ill equipped to render sound, informed decisions concerning this critically important industry. ”

Members of the Grow New York Farms Coalition called on Governor Kathy Hochul and Department of Labor Commissioner Roberta Reardon to reject the report and maintain the current overtime threshold at 60 hours per week.

Like Fisher, Grow NY said that the report is flawed that that it downplayed testimony and data from farm workers, farmers, and researchers from Cornell University, while also omitting reference of workforce training and workplace protections already in place.

The board’s final 21-page report reviews various testimony and cites several reasons for its recommendation, including the physical and emotional toll on farm workers, the economic impacts to the agricultural economy and equity and racial justice.

According to the report, if the recommendation is approved, New York will join California and Hawaii as states that have 40 hours as the threshold for overtime for farm workers.

Three tax credits were passed by the State Legislature and signed by Hochul this year in anticipation of the adoption of the lower overtime threshold recommendations. These include an Investment Tax Credit that was increased from four to 20% for farm businesses, the Farm Workforce Retention tax credit that was increased to $1,200 per employee, and a Refundable Overtime Tax Credit was established for overtime hours paid by farm employers.

Once the board delivers its report, Department of Labor Commissioner Reardon will have 45 days to review and announce her decision. Within five days of receipt, DOL will publish notice in at least 10 newspapers of general circulation in the state. Any objections to the report and recommendations can be sent to the Commissioner within 15 days after such publication.

George Borrello

State Senator George Borrello has proposed legislation that would eliminate the three-member Farm Laborers Wage Board.

The Farm Laborers Wage Board was established as part of the Farm Laborers Fair Labor Practices Act (FLFPA) passed in 2019.

The Wage Board is charged with making a recommendation on reducing the current 60-hour overtime threshold for farm workers to 40 hours. In January, after numerous public hearings on the issue that included testimony from farmers, farm workers and industry stakeholders, the board recommended lowering the threshold, despite the fact that more than 70 percent of the testimony conveyed the harm that would be caused by such a change.

Borrello, a ranking member of the Senate Agriculture Committee, issued a statement saying, “The Wage Board has just one member with an agricultural background, making it ill-equipped to render sound, informed decisions concerning New York State’s critically-important agriculture industry. The fact that the Board ignored the vast majority of testimony, as well as data from a Cornell study that found a lower threshold would hurt both farmers and farm workers, indicates the process was more optics than anything else. Regardless, a decision of this magnitude should not rest with three unelected, unaccountable individuals, which is why this legislation is necessary.”

Senator Borrello noted that the Wage Board is set to reconvene on September 6 to present its final report regarding the overtime recommendations. With many legislators calling for a special session before the end of the summer to tackle crime and inflation, there is potential to address this issue before the board’s scheduled meeting.

Assemblyman Chris Tague, ranking member of the Assembly Agriculture Committee, is sponsoring companion legislation in the lower house.