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Sponsors
1 Co-sponsor
History
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Increases the amount of liquidated damages payable by an employer for failure to pay wages as legally required
Senate Floor Calendar · Sponsor Shirley L. Huntley
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:A10933
Title of bill
An act to amend the labor law, in relation to increasing the amount of liquidated damages for failure to pay wages as legally required
Purpose
To ensure compliance with state labor laws regarding payment of wages and fringe benefits by increasing and mandating civil penalties for certain violations.
Summary of provisions
Amends section 198, subdivision 1-a, of the labor law to increase liquidated damages on a wage claim from 25 percent to twice the total amount of wages found to be due. Adds provisions that the failure to pay wages either (1) must have persisted for more than thirty days, or (2) involved the failure to pay the wages of ten or more employees.
Adds anew subdivision to section 196 of the labor law to permit a class action wage recovery suit.
Justification
Articles 6 and 19 of the labor law prohibit certain employer actions, and require others, to ensure the workers receive their due and just compensation. Article 19, the Minimum Wage Act, controls the minimum wage. Article 6 determines the time limits within which wages must be paid and requires every employer to pay the full amount of wages, benefits and wage supplements due to employees. Article 6 also prohibits "kick-back" agreements whereby employment is contingent upon the employee returning a portion of wages earned.
Continuing investigations and reports reveal that there has been a proliferation of recent years of illegal garment factory "sweatshops". At least 5,000 now exist in New York, exploiting undocumented workers and others in dangerous factories in immigrant neighborhoods like China- town, Washington Heights, Sunset Park and Corona, There is a persistent lack of observance by certain small business owners and "sweat shop" operators with their employees' legal wage and benefits rights. The Apparel Industry Task Force has helped the State Department of Labor collect approximately $12 million in back wages for nearly 30,000 apparel employees in New York.
Wage violations continue in other industries as well. Increased investi- gations by the State Department of Labor of car washes, beauty salons and other businesses across the state have uncovered thousands of wage violations. Many of these violations involve low wage earners who rely on a full paycheck to support their families. New York's 25% cap on liquidated damages against employers that violate wage laws has not been raised in more than 40 years. Several other states have raised their liquidated damages cap to 200% as proposed in this bill. The present enforcement provisions are not a sufficient deterrent to employers who repeatedly violate the law. Substantial increases in civil penalties violations are, therefore, necessary.
Fiscal implications
None.
Prior legislative history
1999/00: A.6864 - S.2807 2001/02: A.851 - S.4073 2003/04: A,1708 - S.637 2005/06: A.6564 - S.1007 2007/08: A.4507 - S.4275
Effective date
90 days following enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.