A Central New York legislator is taking farm owners’ plea for a quarterly farm worker overtime tax credit payment to the state Legislature.

Assemblywoman Marjorie Burnes, R-Avon, has introduced legislation (A.8549) creating a quarterly advance payment schedule for the state’s farm employee overtime tax credit.

The Farm Employer Overtime Credit was created as part of the 2022-23 state budget after a wage board recommended the threshold for farm workers to receive overtime pay should decrease from the current 60 hours a week to 40 hours a week by 2032. The overtime tax credit will be available starting this year. The overtime threshold for farmworkers this year will be 56 hours a week. The number of hours to qualify for overtime will decrease to 52 hours in 2026, 48 hours in 2028, 44 hours in 2030 and 40 hours in 2032. The maximum number of hours for farm workers will be capped at 60 hours a week.

Farmers will be able to claim the credit for overtime between 56 hours worked and 60 hours worked as of Jan. 1. The credit equals 118% of the additional cost of the eligible overtime paid to eligible farm employees.Licensed farm wineries and cideries whose sale of wine or cider accounts for more than 50% of farm income may only claim the credit for employees employed directly on agricultural property, such as production employees but not retail staff members.

The overtime tax credit, as currently written, does allow for an advance payment, but only once a year. Eligible farmers can request an advance payment for the portion of the credit on the overtime paid from Jan. 1 to July 31 by applying to the state Department of Agriculture & Markets by Sept. 30. Allowing the credit to be claimed quarterly has been a request made by farmers since the credit was first discussed because farmers fear not receiving the payment quarterly could reduce their operating margins throughout the year, leading to price increases or farms to close.

“While the intention is to ensure fair compensation for laborers, several factors make it challenging for farmers. This legislation is related to the cost implication,” Byrnes wrote in her legislative justification. “Small and medium-sized farms, in particular, may struggle with the increased labor costs. Agriculture often operates on thin profit margins, and the additional expense of paying overtime could significantly impact their financial viability. Farmers might face difficult choices, such as reducing work hours, scaling back operations, or potentially increasing prices for consumers to offset these additional costs.This bill will help to alleviate the cost implications by allowing quarterly application and payment of the overtime tax credit to the farmer.”

Byrnes’ bill could be discussed during the current legislative session that began Tuesday.