Assemblymember Phil Steck (D-Colonie) announced that a bill he authored to protect workers in New York State when companies go out of business was signed into law (Ch. 421 of 2015).

“It is simply unacceptable for corporations to exploit their workers by failing to properly compensate them,” said Assemblymember Steck. “Thankfully, this new law will hold businesses accountable even when they fail.”

The measure, which was authored by Assemblymember Phil Steck and passed both the Assembly and the Senate unanimously, expands protections for workers by holding the 10 largest shareholders of any company that operates in New York State accountable for unpaid wages when a business fails. Previously, courts had ruled that this was true only for corporations formed in New York State. Now, out-of-state and foreign companies will be held to the same standard when they operate within our state’s borders.

An example of this egregious loophole is evident in the case of Wurld Media, a business that incorporated in Delaware but operated solely in New York State. The company stopped paying wages to its employees even as many of them continued to work after being promised they would eventually be compensated. Wurld Media was sold and several individuals were prosecuted in connection with the matter, but the employees never received the wages they were owed.

This bipartisan legislation levels the playing field for all corporations operating in the state and helps ensure workers are treated fairly, Assemblymember Steck noted.