What's happening
This bill makes payroll processing companies liable for up to triple damages if they intentionally withhold employee payments.
Why it matters
Creates strong financial penalties for payroll processors. By making payroll processing companies liable for up to triple damages if they intentionally withhold employee payments, the law aims to deter misconduct and ensure that workers get paid what they're owed without delay.
Empowers affected employees to take legal action collectively. The bill specifically allows employees to bring class action lawsuits against payroll processing companies that violate the law, making it easier for groups of workers to seek justice together rather than individually.
Adds an extra layer of accountability beyond existing penalties. Liability for triple damages is in addition to any other legal penalties or causes of action, increasing the potential consequences for bad actors in the payroll industry and offering more robust protection for workers.
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Who cares
Headline styles
Hold Payroll Companies Accountable
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8653
2019-2020 Regular Sessions
IN ASSEMBLY
October 2, 2019
Introduced by M. of A. FAHY -- read once and referred to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to the liability of payroll processing companies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general obligations law is amended by adding a new section 11-108 to read as follows:
§ 11-108. Liability of payroll processing company. Notwithstanding any other provision of law to the contrary, any person under contract to an employer to distribute the employer's payroll that intentionally prevents the distribution of such payroll pursuant to the contract with the employer shall be liable to an employee of the employer that failed to receive an expected payment for an amount up to three times the expected payment. Liability under this section is in addition to any other applicable penalties and causes of action. An action to recover damages under this section may be maintained as a class action, notwithstanding subdivision b of section nine hundred one of the civil practice law and rules.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13797-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.