NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7781
SPONSOR: Simon TITLE OF BILL:
An act to amend the labor law, in relation to banning individuals who
have violated wage theft laws from bidding on public works projects
PURPOSE:
To ban individuals who have previously violated wage theft laws from
being able to bid on public works projects
SUMMARY OF PROVISIONS:
Before the awarding of a contract for any public works project, an indi-
vidual, the LLC, LLP, Corporation, Partnership, or any other legal enti-
ty bidding on such public works project must reveal to the Commissioner
for review the full names of all
members/managers/individuals/stockholders, of such LLC, LLP, Corpo-
ration, Partnership, or any other legal entity or person bidding on such
project.
A public works contract shall not be awarded to any person, LLC, LLP,
Corporation, Partnership, or any other legal entity, who has any
members/managers/stock-holders who have interest in such legal entity,
who has previously been found guilty and/or debarred for wage theft.
At no time after the awarding of a public works project, shall a person,
LLC, LLP, Corporation, Partnership, or any other legal entity authorize
an individual as manager/member/stock holder who has ever been debarred
and/or found guilty of wage theft to hold any interest in such legal
entity. The violation of this provision shall result in the immediate
termination of the contract.
Any individual who knowingly or intentionally commits wage theft shall
permanently be barred from bidding themselves, or being a part, member,
manager, and/or stock-holder of any LLC, UP, Corporation, Partnership,
or any other legal entity, that bids on or is awarded any public works
project.
JUSTIFICATION:
To combat the rise of wage theft, stricter laws are required. Current-
ly, various legal entities (who are awarded public works projects) exist
(and because of how they are set up) make it difficult to determine the
actual members of such legal entities. When a wage theft violation
occurs by these legal entities, many of the individuals who make up
these entities are not held accountable because they are unknown.
Because they are unknown, it is possible many members continuously
commit wage theft violations on current and future projects. This bill
would force legal entities bidding on public works projects to reveal
all their members to the commissioner. This would allow the commissioner
to determine if these legal entities have any individuals who have
committed wage theft and/or have been debarred. This bill would also
ban any individual who has ever knowingly or intentionally ever commit-
ted a wage theft violation and/or is debarred from being able to bid or
be granted a public works project, either individually or as part of any
legal entity. This bill would also prevent any legal entity (attempting
to obtain a public works project) who hires or who has as a manager,
share-holder, member of such legal entity, any individual who has
committed a wage theft violation and/or is debarred from bidding and/or
being granted a public works project.
LEGISLATIVE HISTORY:
2021-2022: A1922 Barnwell-referred to labor
2019-2020: A2505 Barnwell-referred to labor
2017-2018: A5497 Barnwell-referred to labor
FISCAL IMPACT:
to be determined
EFFECTIVE DATE:
this act shall take effect immediately
STATE OF NEW YORK
________________________________________________________________________
7781
2023-2024 Regular Sessions
IN ASSEMBLY
June 15, 2023
___________
Introduced by M. of A. SIMON -- read once and referred to the Committee
on Labor
AN ACT to amend the labor law, in relation to banning individuals who
have violated wage theft laws from bidding on public works projects
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 224-f to
2 read as follows:
3 § 224-f. Prohibition against awarding public works project contracts
4 due to wage theft. 1. For the purpose of this section, "wage theft"
5 shall mean the denial of wages or employee benefits that are rightfully
6 owed to an employee.
7 2. Before the awarding of a contract for any public works project, an
8 individual; limited liability company; limited liability partnership;
9 corporation; partnership or any other legal entity bidding on such
10 public works project must reveal to the commissioner for review the full
11 names of all members; managers; individuals; and/or stockholders of such
12 limited liability company; limited liability partnership; corporation;
13 partnership or any other legal entity or person bidding on such project.
14 3. A public works contract shall not be awarded to any person; limited
15 liability company; limited liability partnership; corporation; partner-
16 ship or any other legal entity, who has any members; managers; and/or
17 stockholders who have interest in such legal entity, who has previously
18 been found guilty and/or debarred for wage theft.
19 4. At no time after the awarding of a public works project, shall a
20 person; limited liability company; limited liability partnership; corpo-
21 ration; partnership or any other legal entity authorize an individual as
22 manager; member and/or stockholder who has ever been debarred and/or
23 found guilty of wage theft to hold any interest in such legal entity.
24 The violation of this subdivision shall result in the immediate termi-
25 nation of the contract.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09714-01-3
A. 7781 2
1 5. Any individual person who knowingly or intentionally commits wage
2 theft, shall permanently be barred from bidding themselves, or being a
3 part; member; manager; and/or stockholder of any limited liability
4 company, limited liability partnership, corporation, partnership or any
5 other legal entity that bids on or is awarded any public works project.
6 § 2. This act shall take effect immediately.
