Relates to securing payment of wages for work already performed; creates a lien remedy for all employees; provides grounds for attachment; relates to procedures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft; relates to rights for victims of wage theft to hold the ten members with the largest ownership interests in a company personally liable for wage theft.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5501D
SPONSOR: Rosenthal (MS) 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 corpo-
rations 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 OF BILL:
This bill amends five sections of the law (Lien Law; Labor Law; Attach-
ment 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 work-
ers currently protected under the mechanics' lien provision.
Sections twenty-five and twenty-six amend the labor law to ensure proce-
dures 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 thir-
ty-two and thirty-three amend the business corporation law to streamline
the procedures pursuant to which employees can hold the largest share-
holders 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.
LEGISLATIVE HISTORY:
New bill, 2015
EFFECTIVE DATE:
This act will take effect thirty days after it becomes law.
