N.Y. Labor Law § 565 (2026)

§ 565. Governmental entities. 1. Definition. A governmental entity
shall mean the state of New York, municipal corporations and other
governmental subdivision and any instrumentality of one or more of the
foregoing.
  2. Exclusions. In addition to services not included pursuant to the
provisions of section five hundred eleven of this article, the term
"employment" does not include services rendered for a governmental
entity by:
  (a) an elected official;
  (b) a member of a legislative body or of the judiciary;
  (c) a member of the state national guard or air national guard, except
a person who renders such services as a regular state employee;
  (d) a person serving on a temporary basis in case of fire, storm,
snow, earthquake, flood or similar emergency;
  (e) a person in a major nontenured policymaking or advisory position;
  (f) a person in a policymaking or advisory position, the duties of
which ordinarily do not require more than eight hours per week to
perform; and
  (g) an incarcerated individual of a custodial or penal institution.
  3. Coverage. A governmental entity shall be liable for contributions
under this article unless it becomes liable for payments in lieu of
contributions.
  4. Election of payments in lieu of contributions. A governmental
entity or a group of such entities liable for contribution under this
article may elect to become liable for payments in lieu of contributions
as of the first day of any calendar year by filing with the commissioner
a written notice to this effect before the beginning of such year or, if
the governmental entity was not liable in the preceding calendar year,
by filing the notice not later than thirty days after the end of the
calendar quarter in which it first became liable. The commissioner may
for good cause shown extend the time for the filing of such notice.
  5. Obligation upon election.  (a) A governmental entity which has
elected to become liable for payments in lieu of contributions shall pay
into the fund an amount equal to the amount of benefits paid to
claimants and charged to its employer's account in accordance with the
provisions of paragraph (e) of subdivision one of section five hundred
eighty-one of this article on the basis  of remuneration paid on or
after the date on which such liability became effective.  The amount of
payments so required shall be determined by the commissioner as soon as
practicable after the end of each calendar quarter or any other period.
Such amount shall be payable quarterly or at such times and in such
manner as the commissioner shall prescribe and, when paid, the
employer's account of the governmental entity shall be discharged
accordingly.
  (b) If governmental entities elect payments in lieu of contributions
as a group, the members of the group shall be severally and jointly
liable for payments of amounts equal to the amounts of benefits paid to
claimants and charged to the employer's accounts of all members of the
group. The commissioner may prescribe conditions and methods for such
group elections and for the discharge of the obligations and
responsibilities of the group and its members.
  6. Termination of election. (a) A governmental entity may terminate
its election to become liable for payments in lieu of contributions as
of the first day of any calendar year by filing a written notice to this
effect with the commissioner before the beginning of such year.
  (b) The commissioner may cancel at any time the election of a
governmental entity which has failed to make any of the payments
required hereunder within thirty days after the commissioner has
notified it of the liability for and the amount of such payment. Such
cancellation shall remain in force and effect until the governmental
entity files a new notice of election in accordance with the provisions
of subdivision four of this section after having satisfied conditions
and requirements prescribed by the commissioner for this purpose.
  (c) If such election is terminated by a governmental entity or
cancelled by the commissioner, the governmental entity shall remain
liable for payments in lieu of contributions with respect to all
benefits charged to its account on the basis of remuneration paid before
the date on which such termination or cancellation took effect.
  7. Joint accounts. Any two or more governmental entities may form a
joint account by complying with rules and regulations prescribed by the
commissioner for the establishment, maintenance and dissolution of such
accounts.
  8. Assessment and collection of payments in lieu of contributions. The
amount of payments in lieu of contributions due hereunder from
governmental entities but not paid upon notice shall be assessed and
collected by the commissioner, together with interest and penalties, if
any, in the same manner and subject to the same conditions under which
contributions due from other employers may be assessed and collected
under provisions of this article.
  9. Special provisions applicable to the state. (a) In lieu of
contributions, the state of New York shall pay into the fund an amount
equivalent to the amount of benefits paid to claimants and charged to
the account of the state of New York in accordance with the provisions
of paragraph (e) of subdivision one of section five hundred eighty-one
of this article.
  (b) The amount of payments into the fund required shall be ascertained
by the commissioner as soon as practicable after the end of each
calendar year or any other shorter period and shall be payable from the
general funds of the state, except if a claimant to whom benefits were
paid remuneration by the state of New York during his base period from a
special or administrative fund provided for by law, other than an income
fund of the state university or the mental hygiene services fund, the
payment into the fund shall be made from such special or administrative
fund with the approval of the director of the budget. Such payments by
the state shall be made at such times and in such manner as the
commissioner, with the approval of the director of the budget, may
determine and prescribe.