Congressman Mike Lawler is calling on Governor Kathy Hochul to explain why New York awarded approximately $7 million in taxpayer-funded incentives to Rippling, a technology company facing allegations of anti-worker practices and retaliation against employees who used paid family leave.
In a letter sent Wednesday, Lawler questioned the state’s decision to provide economic development subsidies to the company despite reports that former employees were penalized for exercising workplace rights. He argued that New York taxpayers should not be funding companies accused of mistreating workers, particularly in a state known for its strong support of organized labor.
“Recent reporting uncovered concerns with the company, including allegations that employees were penalized for using paid family leave,” Lawler wrote. “Rippling has no place in one of the most union-friendly states in the U.S.”
The congressman also raised concerns about Rippling founder and CEO Parker Conrad, citing past regulatory actions involving his former company, Zenefits. Lawler noted that the New York State Department of Financial Services fined Zenefits $1.2 million for violations of insurance laws and that Conrad previously agreed to a settlement with the U.S. Securities and Exchange Commission.
Lawler’s letter asks Hochul’s administration to disclose what incentives were provided to Rippling, what due diligence was conducted before approving the subsidies, whether labor and employment practices were considered during the review process, and what safeguards exist to protect taxpayers. He also questioned whether a company reportedly valued at approximately $16 billion should be receiving public subsidies at all.
The congressman requested a response and related records, including subsidy agreements and due diligence materials, by July 4.
Lawler highlighted his record supporting organized labor, including his recent vote for the Faster Labor Contracts Act and his support for legislation aimed at strengthening collective bargaining rights and workplace protections. He said the allegations surrounding Rippling raise serious questions about how New York evaluates companies seeking taxpayer-funded incentives.
