Increases penalties for wage payment violations; relates to liability of members of limited liability companies and establishes the wage theft prevention account

Summary of specific provisions

Section 1 amends Subdivision 1(a) of Section 195 of the Labor Law to strike the annual notice requirement from the Wage Theft Prevention Act when the same information is provided in another manner.

Section 2 amends Subdivisions 1-b and 1-d of Section 198 of the Labor Law to increase penalties for employers' failure to comply with certain sections of the Wage Theft Prevention Act.

Section 3 amends Subdivision 1 of Section 218 of the Labor Law if an order directing payment of wages, benefits, wage supplements, and liqui- dated damages is issued to an employer who had previously committed wage theft, or to an employer whose violation is willful or egregious, the employer will be required to report specified employee and wage data to the Commissioner of Labor, which will be published on the Department of Labor's website. Section 3 also adds a new Subdivision 5 of Section 218 of the Labor Law to provide that an employer similar in operation or ownership to a prior employer who had previously committed wage theft is liable for the acts of the prior employer for the purposes of civil penalties.

Section 4 adds a new Subdivision 4 to Section 219 of the Labor Law to provide that an employer similar in operation or ownership to a prior employer who had previously committed wage theft is liable for the acts of the prior employer for the purposes of orders directing payment of wages from the Commissioner of Labor or other decisions.

Section 5 amends Subdivision 3 of Section 198 of the Labor Law to provide that the Commissioner's investigation into employer retaliation against an employee for reporting wage theft will cover the entire six- year statute of limitations period unless he otherwise notifies all affected employees.

Section 6 amends Subdivision 1(b) of Section 215 of the Labor. Law to authorize the Commissioner to assess a greater civil penalty for those employers who have committed wage theft and had a previous violation within the previous six years.

Section 7 amends Subdivision 3 of Section 218 of the Labor. Law to require rather than allow the Commissioner to assign the money due to an

employee, and that an order or decision regarding civil penalties can be filed in the name of an employee as well as the Commissioner.

Section 8 amends Subdivision 3 of Section 219 of the Labor. Law to require rather than allow the Commissioner to assign the money due to an employee, and that orders directing payment of wages from the Commis- sioner of Labor or other decisions can be filed in the name of an employee as well as the Commissioner.

Section 9 amends Subdivision of Section 663 of the Labor. Law to provide that the Commissioner's investigation related to civil actions will cover the entire six-year statute of limitations period unless he other- wise notifies all affected employees.

Section 10 adds a new Section 861-g of the Labor Law to provide that if a contractor is found to have committed wage theft, the contractor will be required to notify all of its employees and its subcontractors' employees of the violations.

Section 11 adds new Subdivisions (c) and (d) to the Limited Liability Company Law requiring that the ten members with the largest percentage ownership in a limited liability company be personally liable for all debts, wages, or salaries due and owing to any of its laborers, servants or employees, for services performed by them for such limited liability company. The bill requires written notice of one hundred and eighty days after termination of services before any laborer, servant, or employee may charge any of those ten members under this section. An action to enforce such liability shall be commenced within ninety days. After the return of an execution unsatisfied against the limited liability company upon a judgment recovered against it for such services. The bill allows for any member who has paid more than his or her pro rata share to be entitled to contribution pro rata from the other members liable under this section with respect to the excess so paid, over and above his or her pro rata share, and may sue them jointly or severally or any number of them to recover the amount due from them. The bill defines wages or salaries as all compensation and benefits payable by an employer to or for the account of the employee, servant or laborer, for services performed by them for such limited liability company;

Section 12 would add a new Section 97-pppp of the State Finance Law to create the Wage Theft Prevention Enforcement Account which would be established in the custody of the state comptroller. The fund shall consist of moneys collected pursuant to the provisions of Articles five, six, nineteen, and nineteen-A and sections two hundred fifteen and two hundred eighteen of the Labor Law, and the regulations promulgated ther- eunder.. The bill prohibits the moneys to be paid out without a certif- icate of allocation and a schedule of amounts to be made available upon issuance by the director of the budget, and a copy of such certificate to have been filed with the, comptroller.

Section 13 is the effective date.

Justification

The Wage Theft Prevention Act was enacted in 2010 to provide the Department of Labor with the tools necessary to ensure that workers across the State of New York are paid the wages to which they are entitled. However, many employees are still vulnerable to wage theft by unscrupulous employers. This bill would better ensure that all New York workers receive the wages they have rightfully earned.

Prior legislative history

2013 - similar bill died in Labor Committee in both Houses

Fiscal implications for state and local governments

None known.

Effective date

This bill shall take effect 60 days after enactment.