Determination by Employer
The District has the primary responsibility for determining whether an individual is rendering services as an employee or as an independent contractor. When making such a determination the District must consider the factors enumerated in Commissioner’s Regulations Sections 315.2 and 315.3. An individual serving the District as an independent contractor or consultant is not an employee and should not be reported to the New York State and Local Retirement System (NYSLRS).
Charging for Professional Services
A lawyer shall not simultaneously be an independent contractor and an employee of the School District for the purpose of providing legal services to the District.
A lawyer who is not an employee of the School District shall not seek to be or be considered, treated or otherwise reported by the District as an employee thereof for purposes of compensation, remuneration, health insurance, pension and all employment-related benefits and emoluments associated therewith [Education Law Section 2051(2)].
Any person who shall knowingly:
a) Violate the provisions of Education Law Section 2051(2);
b) Make a false statement of material fact; or
c) Falsify or permit to be falsified any record or records of the retirement system in an attempt to defraud the retirement system as a result of such act for the purpose of obtaining a credit towards pension benefits, or a benefit or payment in excess of $1000 from such retirement system for a professional services provider to which such professional services provider would not be entitled, shall be guilty of a Class E felony.
Reports Regarding Lawyers
The District shall, on or before the 45th day after the commencement of its fiscal year, file with the State Education Department, the State Comptroller and the Attorney General a report specifying those requirements enumerated in Education Law Section 2053.
Protection Against Fraud
Any person who shall knowingly make any false statement, or shall falsify or permit to be falsified any record or records of the retirement system in any attempt to defraud the system as a result of such act, shall be guilty of a misdemeanor, and shall be punishable under the laws of New York State.
Any violation of applicable law that results in a member or beneficiary of the retirement system receiving a benefit or payment in excess of $1000 more than he/she would have been entitled to shall be a class E felony. Any violation of applicable law that results in a member or beneficiary of the retirement system receiving a benefit or payment in excess of $3000 more than he/she would have been entitled to shall be a class D felony.
Education Law Sections 525, 2050-2054
Retirement and Social Security Law Sections 111 and 411 8 New York Code of Rules and Regulations (NYCRR) Sections 315.2 and 315.3
NOTE: Refer also to Policy #6000 — Determination of Employment Status: Employee or Independent Contractor