Requires or allows licensing entities to suspend business licenses for certain businesses that are charged or convicted of wage theft; establishes reporting requirements for wage theft convictions.
STATE OF NEW YORK
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9951
IN SENATE
November 20, 2024
___________
Introduced by Sen. MAYER -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the labor law and the criminal procedure law, in
relation to business license suspensions resulting from wage theft
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 190 of the labor law is amended by adding three new
2 subdivisions 10, 11 and 12 to read as follows:
3 10. "Successor business" means an entity engaged in work that is
4 substantially similar to that of the predecessor, where there is
5 substantial continuity of operation with that of the predecessor.
6 11. "Agency" means any agency, department, board, or commission of the
7 state, or of any political subdivision of the state, that issues a
8 license for the purposes of operating a business within the state.
9 12. "License" means any agency permit, certificate, approval, regis-
10 tration, charter, or similar form of authorization that is required by
11 law and issued by any agency for the purposes of operating a business
12 within the state. "License" shall include, but shall not be limited to:
13 a. a certificate of incorporation issued pursuant to section four
14 hundred two of the business corporation law, including a certificate of
15 incorporation for a benefit corporation issued pursuant to section one
16 thousand seven hundred three of the business corporation law, or a
17 certificate of authority issued pursuant to section one thousand five
18 hundred thirty of the business corporation law;
19 b. articles of organization issued pursuant to section two hundred
20 three of the limited liability company law, or a certificate of authori-
21 ty issued pursuant to section eight hundred five of the limited liabil-
22 ity company law;
23 c. a certificate of incorporation issued pursuant to section four
24 hundred two of the not-for-profit corporation law, or a certificate of
25 authority issued pursuant to section one thousand three hundred four of
26 the not-for-profit corporation law;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16311-02-4
S. 9951 2
1 d. a certificate of limited partnership issued pursuant to section
2 121-201 of the partnership law, or a certificate of authority issued
3 pursuant to section 121-904 of the partnership law;
4 e. any certificate to conduct business under an assumed name or as
5 partners filed pursuant to section one hundred thirty of the general
6 business law that is on file in the office of the clerk of the county in
7 which such business is conducted or transacted, or the office of the
8 secretary of state;
9 f. any license, certificate, permit, or registration issued pursuant
10 to section sixty-four of the alcoholic beverage control law, section two
11 hundred twelve-a or article eight of the labor law, or the agriculture
12 and markets law;
13 g. any license required by or issued pursuant to the general business
14 law, including but not limited to licenses for employment agencies
15 pursuant to article eleven of the general business law; nail specialty,
16 natural hair styling, esthetics, and cosmetology pursuant to article
17 twenty-seven of the general business law; or barbering pursuant to arti-
18 cle twenty-eight of the general business law; and
19 h. any license issued by a municipal agency for conducting business
20 within such municipality, including but not limited to licenses for home
21 improvement contractors; skilled trades; construction; restaurant,
22 catering, or other food service; and taxi, limousine, or other for-hire
23 vehicle services.
24 § 2. Subdivision 1 of section 196 of the labor law is amended by
25 adding a new paragraph f to read as follows:
26 f. (i) Upon notification that an employer has been convicted of fail-
27 ing to pay the wages of an employee pursuant to subdivision one of
28 section one hundred ninety-eight-a of this article, failing to pay mini-
29 mum wage or overtime pay pursuant to section six hundred sixty-two of
30 this article, or wage theft under section 155.05 of the penal law, the
31 commissioner shall, after affording such employer notice and an opportu-
32 nity to be heard pursuant to subparagraph (iv) of this paragraph, issue
33 a written determination directing any appropriate agency to suspend one
34 or more licenses that were issued to or filed by such employer, or such
35 employer's successor business, for a period of time to be determined by
36 the commissioner. The commissioner may prohibit such employer or succes-
37 sor business from being eligible to reapply for a license suspended
38 pursuant to this paragraph, or any other license issued for the purpose
39 of operating a business in the state, for a period up to but not exceed-
40 ing two years.
41 (ii) In determining the length of a license suspension determination
42 pursuant to subparagraph (i) of this paragraph, the commissioner shall
43 consider the following factors:
44 (1) The number of employees for which the employer or successor busi-
45 ness failed to pay required wages, benefits, taxes, or other contrib-
46 utions or assessments;
47 (2) The total amount of wages, benefits, taxes, or other contributions
48 or assessments which the employer or successor business failed to pay;
49 (3) Any other harm resulting from the employer's failure to pay
50 required wages, benefits, taxes, or other contributions or assessments;
51 (4) Whether the employer or successor business made good faith efforts
52 to comply with any applicable requirements, as determined by the commis-
53 sioner;
54 (5) The duration of the employer's or successor business's failure to
55 pay required wages, benefits, taxes, or other contributions or assess-
56 ments;
S. 9951 3
1 (6) The role of the directors, officers, or agents of the employer or
2 successor business;
3 (7) Any prior misconduct by the employer or successor business; and
4 (8) Any other relevant factors, as determined by the commissioner.
5 (iii) Upon the conviction of an employer for failing to pay the wages
6 of an employee pursuant to subdivision one of section one hundred nine-
7 ty-eight-a of this article, failing to pay minimum wage or overtime pay
8 pursuant to section six hundred sixty-two of this article, or wage theft
9 under section 155.05 of the penal law, the court shall notify the
10 commissioner of such conviction.
11 (iv) Prior to issuing a written determination directing any appropri-
12 ate agency to suspend one or more licenses that were issued to or filed
13 by an employer pursuant to subparagraph (i) of this paragraph, the
14 commissioner shall notify the employer, or such employer's successor
15 business, in writing, of the commissioner's intent to issue such deter-
16 mination and the reasons therefor, and shall afford such employer or
17 successor business an opportunity to be heard in person or by counsel in
18 reference thereto. Such notice shall notify the employer or successor
19 business that a request for a hearing must be made within fifteen days
20 after the issuance of such notification. If the employer requests a
21 hearing within such fifteen-day period, such hearing shall be held at
22 such time and place as the commissioner shall prescribe. If the employer
23 does not request a hearing within such fifteen-day period, then such
24 notification shall be deemed the final written determination by the
25 commissioner. The commissioner shall have subpoena powers pursuant to
26 the civil practice law and rules in carrying out the provisions of this
27 paragraph. If the commissioner, after such hearing, issues a determi-
28 nation directing the suspension of the employer's license or licenses,
29 the commissioner shall notify such employer, in writing, of such deter-
30 mination and the reasons therefor.
31 § 3. Section 198-a of the labor law is amended by adding two new
32 subdivisions 4 and 5 to read as follows:
33 4. The court may prohibit any employer, including any person with an
34 ownership interest in such employer, who is charged with a criminal
35 offense pursuant to subdivision one of this section from applying for a
36 license to operate a business in the state under a different business
37 name, and/or opening or operating any successor business that is engaged
38 in the same or equivalent trade or activity, for the pendency of the
39 criminal proceeding.
40 5. The court shall notify the commissioner of any employer convicted
41 of a criminal offense pursuant to subdivision one of this section.
42 § 4. Section 662 of the labor law is amended by adding two new subdi-
43 visions 3 and 4 to read as follows:
44 3. The court may prohibit any employer, including any person with an
45 ownership interest in such employer, who is charged with a criminal
46 offense pursuant to subdivision one of this section from applying for a
47 license to operate a business in the state under a different business
48 name, and/or opening or operating any successor business that is engaged
49 in the same or equivalent trade or activity, for the pendency of the
50 criminal proceeding.
51 4. The court shall notify the commissioner of any employer convicted
52 of a criminal offense pursuant to subdivision one of this section.
53 § 5. The criminal procedure law is amended by adding a new section
54 380.98 to read as follows:
55 § 380.98 Notification to the commissioner of labor of certain
56 convictions.
S. 9951 4
1 Upon judgment of conviction of an employer for a criminal offense
2 pursuant to subdivision one of section one hundred ninety-eight-a or
3 subdivision one of section six hundred sixty-two of the labor law, or
4 wage theft pursuant to section 155.05 of the penal law, the clerk of the
5 court shall include notification and a copy of the written determination
6 in a report of such conviction to the commissioner of labor.
7 § 6. Subdivision 3-a of section 500.10 of the criminal procedure law
8 is amended by adding a new paragraph (k) to read as follows:
9 (k) When a principal is charged with a criminal offense pursuant to
10 subdivision one of section one hundred ninety-eight-a or subdivision one
11 of section six hundred sixty-two of the labor law, or wage theft pursu-
12 ant to section 155.05 of the penal law, the court may prohibit such
13 principal from applying for a license to operate a business in the state
14 under a different business name, and/or opening or operating any succes-
15 sor business that is engaged in the same or equivalent trade or activ-
16 ity, for the pendency of the criminal proceeding.
17 § 7. The criminal procedure law is amended by adding a new section
18 530.15 to read as follows:
19 § 530.15 Protection for victims of wage theft.
20 When a criminal action is pending involving a complaint charging an
21 employer with a criminal offense pursuant to subdivision one of section
22 one hundred ninety-eight-a or subdivision one of section six hundred
23 sixty-two of the labor law, or wage theft pursuant to section 155.05 of
24 the penal law, the court, in addition to any other powers conferred upon
25 it by this chapter, may prohibit such employer from applying for a
26 license to operate a business in the state under a different business
27 name, and/or opening or operating any successor business that is engaged
28 in the same or equivalent trade or activity, for the pendency of the
29 criminal proceeding.
30 § 8. This act shall take effect immediately.
