West NY News

Senator George Borrello is urging Governor Kathy Hochul to amend the Farm Employer Overtime Tax Credit as part of her 30-day budget amendments. The senator aims to ensure that all farm employers, regardless of payroll structure, receive the promised financial relief.

In a letter addressed to Governor Hochul, Senator Borrello requested a technical correction to the tax credit. This amendment would allow all farm employers to be reimbursed for increased labor costs due to New York's overtime pay mandates for farm employees. A drafting error in the original law inadvertently created a loophole, excluding many farm owners from claiming the credit.

“New York’s farmers have endured relentless regulatory and financial burdens, and this tax credit was meant to provide meaningful relief as they adjust to the state’s overtime mandate,” stated Senator Borrello. He emphasized that a previous vetoed bill addressing this issue should now be resolved through the budget process.

The farms excluded from accessing the tax credit are those managing payroll via professional employer organizations or corporate entities handling benefits across multiple operations. Many family-owned farms in New York utilize these structures but have been denied access to essential relief.

The Farm Employer Overtime Tax Credit was introduced in the FY 2022-23 state budget to help farms cope with increased labor costs following New York's decision to lower the farmworker overtime threshold. As of January 1, 2024, farm workers are entitled to overtime pay after working more than 56 hours per week, with this threshold decreasing every two years until it reaches 40 hours per week by 2032.

Senator Borrello expressed his commitment to supporting New York’s agricultural community by ensuring that state policies facilitate their success rather than hinder it. “Our state’s farmers have already suffered under policies that prioritize radical special interests over what is best for our farmers and agriculture. We must correct this oversight and ensure that all farm employers receive the support they were promised,” he continued.

The senator urged Governor Hochul to address this issue by including legislative corrections in her upcoming budget amendments, stressing its importance for New York's farmers and the future of agriculture in the state.