- Floor Votes
Go to top
STATE OF NEW YORK ________________________________________________________________________ 7268 IN SENATE April 12, 2016 ___________ Introduced by Sen. MARTINS -- (at request of the Department of Labor) -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to unemployment insurance The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The labor law is amended by adding a new section 573-a to 2 read as follows: 3 § 573-a. Personal liability for contributions, penalties and interest 4 regarding corporations, limited liability companies, and partnerships. 5 1. For purposes of this section, the term "person" shall mean: (a) any 6 officer of a corporation; (b) any manager or member of a limited liabil- 7 ity company formed under the limited liability company law or similar 8 statutes in other states or countries, who has an ownership interest in 9 or management authority over the limited liability company; and (c) all 10 partners under the partnership law including: (i) general partners and 11 (ii) any limited partners to the extent that such limited partners are 12 liable to third parties under the partnership law. 13 2. Notwithstanding any other provision of law, if a corporation, 14 limited liability company or partnership has failed to make employer 15 contributions as required by this article, or has failed to file quar- 16 terly combined withholding, wage reporting and unemployment insurance 17 returns as required by paragraph four of subsection (a) of section six 18 hundred seventy-four of the tax law, all persons shall be jointly and 19 severally liable for the total amount of such contributions not 20 collected, penalties and any interest accruing thereon. Such persons 21 shall be considered employers for purposes of collecting amounts due 22 pursuant to this subdivision pursuant to the provisions of this article 23 and other provisions of law. The liability of any person shall not be 24 relieved by the dissolution of the corporation, limited liability compa- 25 ny or partnership. 26 3. The commissioner, after issuing a determination that a person is 27 liable for amounts due under subdivision two this section, shall provide 28 notice of the basis for personal liability and the total amount due and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14152-01-6S. 7268 2 1 unpaid by such corporation, limited liability company or partnership in 2 such determination. 3 4. A person determined to be personally liable under this section 4 shall have all rights of appeal set forth in title eight of this article 5 solely with respect to such determination of his or her personal liabil- 6 ity. 7 § 2. This act shall take effect immediately, but shall apply to 8 amounts that become due for the quarter after such effective date.