In a significant legal development, Suffolk County state Supreme Court Judge Alison Napolitano temporarily halted a law that would limit the outside income of New York state lawmakers. This decision, which was rendered on July 17, 2024, marks a notable victory for Republican lawmakers who are actively seeking to overturn the cap as the law is set become effective on Wednesday, Jan. 1, 2025.
The ruling
Napolitano issued a ruling to block the enforcement of the income cap while a lawsuit initiated by Republican lawmakers proceeds. The state attorney general—representing New York in this case—retains the right to appeal the state Supreme Court’s decision to the Appellate Division, Second Department.
In 2022, the Legislature passed Chapter 841 of the Laws of 2022, which increased the annual salary of state legislators from $110,000 to $142,000—the highest salary for any state Legislature at the time, and introduced a phased-in cap on outside income, beginning on Jan. 1, 2025, which would limit state legislators to earning no more than $35,000 annually from nongovernment sources.
The term “outside earned income” encompasses wages, salaries, fees, and other forms of compensation for services rendered. However, the legislation includes several exemptions, such as compensation for military service, royalties from copyrights and patents, payouts from retirement and pension plans, income from investments and capital gains, earnings from family businesses, and any delayed compensation received prior to taking office as a legislator.
The lawsuit
The lawsuit—spearheaded by 11 Republican lawmakers—argues that the income cap violates the state constitution.
They claim that the constitution sets forth only three fundamental requirements for a candidate seeking a seat in the state Legislature: U.S. citizenship, five years of residency in the state, and one year of residency in their district before the election.
The Republicans further argue that the law’s definitions of outside income and certain exceptions are unconstitutionally vague. At its core, the lawsuit reflects the plaintiffs’ belief in the Founding Fathers’ vision of citizen legislators, as opposed to career politicians.
Judicial perspective
In her ruling, Napolitano opined that the lawsuit had a strong likelihood of success. She noted that enforcing the cap during the legal proceedings could harm lawmakers and candidates who might have to make permanent decisions about their outside employment or businesses.
Napolitano considered whether the harm to plaintiffs from not granting the injunction would outweigh the harm to the defendants from granting it. Since the outside income would take effect on Jan. 1, 2025, candidates running in the November 2024 election need to decide whether to quit a job or close a business that pays over the $35,000 limit.
Broader implications
As the law set to take effect on Jan. 1, 2025, remains in limbo, this injunction allows the lawsuit to proceed without immediate consequence to the plaintiffs.
While the state attorney general may appeal the decision, the ruling highlights the ongoing debate over balancing public service with private income, as well as the ongoing debate of citizen legislators versus career politicians.
The outcome of this legal battle will have lasting implications for the structure and integrity of New York state’s legislative body.
PIA will continue to monitor the developments of this case as it progresses.
Theophilus Alexander
Theophilus W. Alexander joined PIA Northeast as a government & industry affairs specialist for the Government & Industry Affairs Department in 2023. Prior to joining PIA, Theo had served in both houses of the New York State Legislature. Previously, he worked as a legislative analyst for Hon. New York State Sen. Samra G. Brouk, D-55, and he served at the New York State Assembly, as a policy analyst with New York Assembly Program & Counsel. Theo received his Bachelor of Arts degree in Politics from Ithaca College in Ithaca, N.Y.
