STATE OF NEW YORK
________________________________________________________________________
2734
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
___________
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when
printed to be committed to the Committee on Corporations, Authorities
and Commissions
AN ACT to amend the limited liability company law, in relation to
liability of members for wages due to laborers, servants or employees
by domestic and foreign limited liability companies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (c) of section 609 of the limited liability
2 company law, as added by chapter 537 of the laws of 2014, is amended to
3 read as follows:
4 (c) Notwithstanding the provisions of subdivisions (a) and (b) of this
5 section, the ten members with the largest percentage ownership interest,
6 as determined as of the beginning of the period during which the unpaid
7 services referred to in this section are performed, of every domestic
8 limited liability company, or of any foreign limited liability company,
9 when the unpaid services were performed in the state, shall jointly and
10 severally be personally liable for all debts, wages or salaries due and
11 owing to any of its laborers, servants or employees, for services
12 performed by them for such limited liability company. Before such labor-
13 er, servant or employee shall charge such member for such services, he
14 or she shall give notice in writing to such member that he or she
15 intends to hold such member liable under this section. Such notice shall
16 be given within one hundred eighty days after termination of such
17 services. An action to enforce such liability shall be commenced within
18 ninety days after the return of an execution unsatisfied against the
19 limited liability company upon a judgment recovered against it for such
20 services. A member who has paid more than his or her pro rata share
21 under this section shall be entitled to contribution pro rata from the
22 other members liable under this section with respect to the excess so
23 paid, over and above his or her pro rata share, and may sue them jointly
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03563-01-9
S. 2734 2
1 or severally or any number of them to recover the amount due from them.
2 Such recovery may be had in a separate action. As used in this subdivi-
3 sion, "pro rata" means in proportion to percentage ownership interest.
4 Before a member may claim contribution from other members under this
5 section, he or she shall give them notice in writing that he or she
6 intends to hold them so liable to him or her.
7 § 2. This act shall take effect on the sixtieth day after it shall
8 have become a law.
