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S07773 Summary:

S07773 Actions:

S07773 Committee Votes:

S07773 Floor Votes:

S07773 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7773
 
                    IN SENATE
 
                                    January 11, 2022
                                       ___________
 
        Introduced  by  Sen.  RAMOS  -- 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 general business law, in  relation
          to  actions  for  non-payment  of wages; and to amend a chapter of the
          laws of 2021, amending the labor law  and  the  general  business  law
          relating  to actions for non-payment of wages, as proposed in legisla-
          tive bills numbers S. 2766-C and A. 3350-A, in relation to the  effec-
          tiveness thereof
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivisions 1, 2, 4, 9 and 10  of  section  198-e  of  the
     2  labor law, as added by a chapter of the laws of 2021, amending the labor
     3  law  and the general business law relating to actions for non-payment of
     4  wages, as proposed in legislative bills numbers S. 2766-C and A. 3350-A,
     5  are amended to read as follows:
     6    1. A contractor making or taking a construction contract shall [assume
     7  liability] be liable for any debt resulting from an action under section
     8  one hundred ninety-eight of this article, owed to [a wage  claimant]  an
     9  employee  or  third  party  on  the [wage claimant's] employee's behalf,
    10  incurred by a subcontractor at any tier acting under,  by,  or  for  the
    11  contractor  or  its  subcontractors for the [wage claimant's] employee's
    12  performance of labor. The provisions of this section shall not be deemed
    13  to limit the liability of a  subcontractor  under  section  one  hundred
    14  ninety-eight of this article.
    15    2.  No  agreement  or release by an employee or subcontractor to waive
    16  liability [assigned to] of a contractor  under  this  section  shall  be
    17  valid  except  as  otherwise  provided  herein.   The provisions of this
    18  section shall not be deemed to impair the  rights  of  a  contractor  to
    19  maintain  an  action  against a subcontractor for amounts for owed wages
    20  that are paid by a contractor pursuant to this section.
    21    4. In the case of a private civil action by an employee, such employee
    22  may designate any person, organization or  collective  bargaining  agent
    23  authorized  to  file  a  complaint  with  the  commissioner  pursuant to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04456-14-2
        S. 7773                             2
 
     1  section one hundred ninety-six-a of this article, to make a [wage] claim
     2  pursuant to this section on  his or her behalf.
     3    9.  [Any] A contractor's liability [assigned to a contractor] pursuant
     4  to the provisions of this section shall be  applicable  only  for  [any]
     5  claims occurring no [later] earlier than three years prior to the initi-
     6  ation  of  such  claim  in  a  court  of  competent  jurisdiction or the
     7  commencement of a civil action brought forth by the attorney general  or
     8  department.  Before bringing a civil action pursuant to this section, an
     9  employee,  or  third  party  on  such  employee's  behalf, must give the
    10  contractor notice  of  the  alleged  violation.  The  notice  need  only
    11  describe the general nature of the claim and shall not limit the liabil-
    12  ity  of the contractor or preclude subsequent amendments of an action to
    13  encompass additional  employees  employed  by  the  subcontractor.    An
    14  employee,  or  third  party  on  such employee's behalf, may not bring a
    15  civil action until ten business days after giving the contractor  notice
    16  of  the  alleged  violation  and  may  not  bring  a civil action if the
    17  contractor corrects the alleged violation. An employee, or  third  party
    18  on  such employee's behalf, is not required to give notice to a contrac-
    19  tor pursuant to this subdivision before bringing a civil action pursuant
    20  to this section if any  employee,  or  third  party  on  any  employee's
    21  behalf,  previously  has  given  notice  to  such contractor of the same
    22  alleged violation or a prior alleged violation by the  same  subcontrac-
    23  tor.  The  provisions  of  this section shall not be deemed to diminish,
    24  impair, or otherwise  infringe  on  any  other  rights  of  an  employee
    25  provided pursuant to this chapter, including the right of an employee to
    26  bring an action against any employer under the provisions of section one
    27  hundred ninety-eight of this article.
    28    10.  Nothing  in  this section shall be deemed to diminish the rights,
    29  privileges, or remedies of any employee under any collective  bargaining
    30  agreement.  [The]  On  behalf  of  an  employee  subject to a collective
    31  bargaining agreement, the provisions of this section may be waived by  a
    32  collective   bargaining   agreement   with  a  bona  fide  building  and
    33  construction trade labor  organization  which  has  established  itself,
    34  and/or  its  affiliates, as the collective bargaining representative for
    35  persons performing work on a project, provided that for such  waiver  to
    36  be  valid, it shall explicitly reference this section.  Provided, howev-
    37  er, that such waiver shall not diminish  or  impair  the  rights  of  an
    38  employee provided under any other section of this chapter.
    39    §  2.  Subdivision  1 of section 756-f of the general business law, as
    40  added by a chapter of the laws of 2021, amending the labor law  and  the
    41  general  business  law  relating to actions for non-payment of wages, as
    42  proposed in legislative bills  numbers  S.  2766-C  and  A.  3350-A,  is
    43  amended to read as follows:
    44    1.  Upon  request of a contractor, or a contractor's subcontractor, to
    45  any subcontractor which performs any portion of work within the scope of
    46  the contractor's construction contract with an owner, such subcontractor
    47  shall provide certified payroll records which, at a minimum, contain all
    48  lawfully required information required by articles six and  nineteen  of
    49  the  labor  law  for  all employees providing labor on the project. Such
    50  payroll records shall contain  sufficient  information  to  apprise  the
    51  contractor  or  subcontractor  of such subcontractor's payment status in
    52  paying wages and [making any applicable fringe or other benefit payments
    53  or contributions to a third  party  on  its]  benefits,  as  defined  by
    54  section  one hundred ninety-eight-c of the labor law, including payments
    55  or contributions on the employee's  behalf.  Payroll  records  shall  be
    56  marked  or  redacted to an extent only to prevent disclosure of an indi-
        S. 7773                             3
 
     1  vidual's full social security number but shall  provide  the  last  four
     2  digits of the social security number.
     3    §  3.  Section  4 of a chapter of the laws of 2021, amending the labor
     4  law and the general business law relating to actions for non-payment  of
     5  wages, as proposed in legislative bills numbers S. 2766-C and A. 3350-A,
     6  is amended to read as follows:
     7    § 4. This act shall take effect on the one hundred twentieth day after
     8  it  shall  have  become  a law and shall apply to construction contracts
     9  entered into, renewed, modified or amended on or  after  such  effective
    10  date  and  shall  only apply to wages, benefits, and/or wage supplements
    11  earned on or after such effective date.
    12    § 4. This act shall take effect immediately; provided,  however,  that
    13  sections  one and two of this act shall take effect on the same date and
    14  in the same manner as a chapter of the laws of 2021, amending the  labor
    15  law  and the general business law relating to actions for non-payment of
    16  wages, as proposed in legislative bills numbers S. 2766-C and A. 3350-A,
    17  takes effect.