Amd SS195, 198, 218, 215, 219 & 663, add S861-g, Lab L; amd S609, Lim Lil L; add S97-pppp, St Fin L
Increases penalties for wage payment violations; relates to liability of members of limited liability companies and establishes the wage theft prevention enforcement account.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8106C
SPONSOR: Heastie (MS) TITLE OF BILL: An act to amend the labor law, in relation to
increased penalties for violations of wage payment provisions and
contractor accountability; to amend the limited liability company law,
in relation to liability of members; and to amend the state finance law,
in relation to establishing the wage theft prevention account
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to provide additional protections for
employees against wage theft.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends Subdivision 1(a) of Section 195 of the Labor Law to
strike the annual notice requirement from the Wage Theft Prevention Act
when the same information is provided in another manner.
Section 2 amends Subdivisions 1-b and 1-d of Section 198 of the Labor
Law to increase penalties for employers' failure to comply with certain
sections of the Wage Theft Prevention Act.
Section 3 amends Subdivision 1 of Section 218 of the Labor Law if an
order directing payment of wages, benefits, wage supplements and liqui-
dated damages is issued to an employer who had previously committed wage
theft, or to an employer whose violation is willful or egregious, the
employer will be required to report specified employee and wage data to
the Commissioner of Labor, which will be published on the Department of
Labor's website. Section 3 also adds a new Subdivision 5 of Section 218
of the Labor Law to provide that an employer similar in operation or
ownership to a prior employer who had previously committed wage theft is
liable for the acts of the prior employer for the purposes of civil
penalties.
Section 4 adds a new Subdivision 4 to Section 219 of the Labor Law to
provide that an employer similar in operation or ownership to a prior
employer who had previously committed wage theft is liable for the acts
of the prior employer for the purposes of orders directing payment of
wages from the Commissioner of Labor or other decisions.
Section 5 amends Subdivision 3 of Section 218 of the Labor Law to
provide that the Commissioner's investigation into employer retaliation
against an employee for reporting wage theft will cover the entire six-
year statute of limitations period unless he otherwise notifies all
affected employees.
Section 6 amends Subdivision 1(b) of Section 215 of the Labor Law to
authorize the Commissioner to assess a greater civil penalty for those
employers who have committed wage theft and had a previous violation
within the previous six years.
Section 7 amends Subdivision 3 of Section 218 of the Labor Law to
require rather than allow the Commissioner to assign the money due to an
employee, and that an order or decision regarding civil penalties can be
filed in the name of an employee as well as the Commissioner.
Section 8 amends Subdivision 3 of Section 219 of the Labor Law to
require rather than allow the Commissioner to assign the money due to an
employee, and that orders directing payment of wages from the Commis-
sioner of Labor or other decisions can be filed in the name of an
employee as well as the Commissioner.
Section 9 amends Subdivision 3 of Section 663 of the Labor Law to
provide that the Commissioner's investigation related to civil actions
will cover the entire six-year statute of limitations period unless he
otherwise notifies all affected employees.
Section 10 adds a new Section 861-g of the Labor Law to provide that if
a contractor or sub-contractor is found to have committed wage theft,
the contractor or sub-contractor will be required to notify all of its
employees of the violations.
Section 11 adds new Subdivisions (c) and (d) to the Limited Liability
Company Law requiring that the ten members with the largest percentage
ownership in a limited liability company be personally liable for all
debts, wages, or salaries due and owing to any of its laborers, servants
or employees, for services performed by them for such limited liability
company. The bill requires written notice of one hundred and eighty days
after termination of services before any laborer, servant, or employee
may charge any of those ten members under this section. An action to
enforce such liability shall be commenced within ninety days after the
return of an execution unsatisfied against the limited liability company
upon a judgment recovered against it for such services. The bill allows
for any member who has paid more than his or her pro rata share to be
entitled to contribution pro rata from the other members liable under
this section with respect to the excess so paid, over and above his or
her pro rata share, and may sue them jointly or severally or any number
of them to recover the amount due from them. The bill defines wages or
salaries as all compensation and benefits payable by an employer to or
for the account of the employee, servant or laborer, for services
performed by them for such limited liability company.
Section 12 would add a new Section 97-pppp of the State Finance Law to
create the Wage Theft Prevention Enforcement Account which would be
established in the custody of the state comptroller. The fund shall
consist of moneys collected pursuant to the provisions of Articles five,
six, nineteen, and nineteen-A and sections two hundred fifteen and two
hundred eighteen of the Labor Law, and the regulations promulgated ther-
eunder. The bill prohibits the moneys to be paid out without a certif-
icate of allocation and a schedule of amounts to be made available upon
issuance by the director of the budget, and a copy of such certificate
to have been filed with the comptroller.
Section 13 is the effective date.
JUSTIFICATION:
The Wage Theft Prevention Act was enacted in 2010 to provide the Depart-
ment of Labor with the tools necessary to ensure that workers across the
State of New York are paid the wages to which they are entitled. Howev-
er, many employees are still vulnerable to wage theft by unscrupulous
employers. This bill would better ensure that all New York workers
receive the wages they have rightfully earned.
PRIOR LEGISLATIVE HISTORY:
2013: A.8106 (Heastie) - Referred to Labor.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None known.
EFFECTIVE DATE:
This bill shall take effect 60 days after enactment.
