Court Approves Cap on New York Legislators’ Outside Income

Introduction to the Legislation

ALBANY, N.Y. (NEXSTAR) — Legislation passed in 2022 placed a limit on how much money lawmakers in the New York State Legislature could earn in addition to their government salary. A March court ruling ended a pause on implementing the rule, which was supposed to take effect in January, but Republican lawmakers are already appealing.

Details of the Law

S9617/A10730 created new pay and income rules for lawmakers, raising their annual pay to $142,000 while capping extra earnings. Lawmakers seem to approve of this aspect of the law. But it also restricted outside income from fees or services to $35,000 a year, a number taken from the existing cap on income for retired individuals in public service.

What the Law Covers

The law covers wages, fees, and other payments for services lawmakers perform outside of their official work. Some earnings do not count, like income from state pay, military service, royalties, pensions, investments, family business earnings, or pay from before January 2025 or before taking office.

Enforcement and Penalties

In terms of enforcement under the law as written, violators would forfeit both their state salary and their vote in the legislature. But the recent ruling—which you can read at the bottom of this story—deemed losing voting privileges unconstitutional.

Penalties for Violation

But they’d still face a fine of up to $40,000, plus the value of any gift, compensation, or benefit received with or for violating the law, if it takes effect. The statute includes language that lets the Legislative Ethics Commission refer violators to "the appropriate prosecutor" for potential class A misdemeanor charges.

Reaction from Lawmakers

While Supreme Court Judge Alison Napolitano struck down the forfeiture of voting rights in the legislature, she still decided to dismiss most of the other arguments against the law. But, some lawmakers already making over $35,000 pushed back, filing another motion to pause implementation while the case gets appealed to a higher court.

Concerns Raised by Lawmakers

Some legislators—including State Senate and Assembly Minority Leaders Rob Ortt and Will Barclay, whose similar affidavits are available at the bottom of this story—said that being forced to either resign or give up their outside job represents irreparable harm. They claimed that implementing the limit on income would spur expensive special elections and disenfranchise millions of voters.

Comparison with National Standards

Meanwhile, of all state legislatures in the U.S., New York’s pays the most. Adding together the base salary of $142,000 and the total allowed outside income of $35,000 would total $177,000.

Per Capita Income in New York

Per capita income calculates the average income per person, dividing the total income by the number of people. According to the U.S. Census, in New York, the per capita income in the past 12 months—in 2023 dollars—was $49,520, rounded to the nearest whole dollar.

Defense of the Law

The state defended the law as preventing conflicts of interest, maintaining high ethical standards, and keeping lawmakers focused on public service. In a March 17 filing opposing the motion for another pause—also available at the bottom of this story—the Attorney General’s office argued that such a pause lacks legal basis.

Argument Against Delay

Assistant Attorney General Susan Connolly used Giglio, Hawley, Lemondes, Slater, Ortt, and Barclay examples in her argument. She said each legislator knew the risks when they ran for office or reelection, having already had over a year to get their financial affairs in order. She traced a straight line from hardships on legislators back to their own choices, and also alleged that the Republican plaintiffs are purposefully delaying a valid law in a move that only damages public trust.

Conclusion

The court’s approval of the cap on New York legislators’ outside income marks a significant step towards preventing conflicts of interest and maintaining high ethical standards in the state’s government. While some lawmakers have raised concerns and are appealing the decision, the state has defended the law as necessary for ensuring that lawmakers remain focused on public service.

FAQs

• Q: What is the new cap on outside income for New York legislators?
  A: The new cap is $35,000 per year.
• Q: What is the annual salary for New York lawmakers?
  A: The annual salary is $142,000.
• Q: What types of income are exempt from the cap?
  A: Income from state pay, military service, royalties, pensions, investments, family business earnings, or pay from before January 2025 or before taking office are exempt.
• Q: What are the penalties for violating the law?
  A: Violators face a fine of up to $40,000, plus the value of any gift, compensation, or benefit received with or for violating the law, and potential class A misdemeanor charges.
• Q: Why are some lawmakers appealing the decision?
  A: They claim that the law represents an unfair bait-and-switch, is too vague, and would cause irreparable harm by forcing them to choose between their outside jobs and their legislative positions.