Relates to securing payment of wages for work already performed; creates an employee lien

4 Co-sponsors

• Joseph P. Addabbo Jr.
• Tony Avella
• Bill Perkins
• Diane J. Savino

Title of bill

An act to amend the lien law, in relation to employee liens; to amend the labor law, in relation to employee complaints; to amend the civil practice law and rules, in relation to grounds for attachment; to amend the business corporation law, in relation to streamlining procedures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft; and to amend the limited liability company law, in relation to creating a right for victims of wage theft to hold the ten members with the largest ownership interests in a company personally liable for wage theft

Purpose

This bill amends five sections of the law (Lien Law; Labor Law; Attachment under the Civil Practice Law and Rules; the Business Corporations Law; and the Limited Liability Company Law) to strengthen current laws to increase the likelihood that victims of "wage theft" will be able to secure payment of unpaid wages for work already performed from their employers.

Summary of provisions

Sections one through twenty-four amend the lien law to expand the mechanics' lien provisions and create an "employee's lien," that would provide a lien remedy for all employees, not just home improvement workers currently protected under the mechanics' lien provision. Sections twenty-five and twenty-six amend the labor law to ensure procedures used by the Department of Labor are consistent with procedures in the employee's lien process. Sections twenty-seven through thirty-one amend the civil practice law and rules to create a new ground for attachment, allowing victims of wage theft to seek attachment of the employers' assets during the pendency of a court action. Sections thirty-two and thirty-three amend the business corporation law to streamline the procedures pursuant to which employees can hold the largest shareholders of non-publicly traded corporations personally liable for wage theft. Sections thirty-four and thirty-five amend the limited liability company law to streamline the procedures pursuant to which employees can hold the ten members with the largest ownership interest in the company personally liable for wage theft.

Section thirty-six sets forth the effective date.

Justification

This bill is needed to increase the likelihood that victims of wage theft will be able to secure payment of wages due and owing from their employers. In too many instances, exploitative employers dissipate their assets or dissolve their business to avoid paying wages they owe to their employees. By the time workers have filed a lawsuit and are awarded a judgment, there are few, if any, assets to be found. By increasing the ability for workers to secure and collect the wages for work already performed, this bill strengthens the existing labor law provisions and the enforcement of such laws.

Prior legislative history

New bill.

Effective date

This act will take effect thirty days after it becomes law.