New York State Assembly

 
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A00453 Summary:

A00453 Actions:

A00453 Committee Votes:

Committee:CORPORATIONS, AUTHORITIES AND COMMISSIONS   Chair:Paulin      
DATE:02/12/2019AYE/NAY:18/6  Action: Favorable refer to committee Codes        
Paulin
Aye
Lawrence
Nay
Cook
Aye
Blankenbush
Nay
Galef
Aye
Friend
Nay
Rodriguez
Excused
Malliotakis
Aye
Quart
Aye
Palmesano
Nay
Otis
Aye
Lalor
Nay
Rozic
Aye
LiPetri
Nay
Kim
Excused
Buchwald
Aye
Seawright
Aye
Dilan
Aye
Richardson
Aye
De La Rosa
Aye
Pheffer Amato
Aye
Vanel
Aye
Carroll
Aye
Niou
Aye
Fall
Aye
Jean-Pierre
Aye

Committee:CODES   Chair:Lentol      
DATE:03/05/2019AYE/NAY:16/6  Action: Favorable         
Lentol
Aye
Ra
Nay
Schimminger
Aye
Giglio
Nay
Pretlow
Aye
Montesano
Nay
Cook
Aye
Morinello
Nay
Cymbrowitz
Aye
Palumbo
Nay
O'Donnell
Aye
Garbarino
Nay
Lavine
Aye
Perry
Aye
Zebrowski
Aye
Abinanti
Aye
Weprin
Aye
Mosley
Aye
Hevesi
Aye
Fahy
Aye
Seawright
Aye
Rosenthal
Aye

A00453 Floor Votes:

A00453 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A453
 
SPONSOR: Steck

 
TITLE OF BILL:
 
An act to amend the limited liability company law, in relation to
liability of members for wages due to laborers, servants or employees by
domestic and foreign limited liability companies
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
The bill ensures that wage theft from employees of Limited Liability
Companies does not occur when the LLC is established in a foreign state
but employs workers in the State of New York.
 
 
SUMMARY OF PROVISIONS:
 
Section 1. Amends subdivision (c) of section 609 of the Limited Liabil-
ity Company Law, as added by chapter 537 of the laws of 2014.
 
Section 2. The amendment adds language requiring that the 10 major
shareholders be liable for unpaid wages due to laborers, servants or
employees for foreign as well as domestic limited liability companies.
 
Section 3. Effective date.
 
 
JUSTIFICATION:
 
Limited Liability Company Law § 609 imposes liability for unpaid wages
on the members with the 10 largest ownership interests after a judgment
against the corporation has been returned unsatisfied. This bill ensures
that all foreign Limited Liability Companies employing workers in New
York State are treated the same in the eyes of the law as domestic LLCs.
In 2015, legislation was enacted which ended the distinction under which
foreign corporations had been exempted by court decision from this rule.
Likewise, the law should be clear that foreign LLCs should abide by the
same rule as domestic LLCs, thereby eliminating any incentive for an LLC
doing business in New York State to form under the laws of a foreign
state.
 
 
LEGISLATIVE HISTORY:
 
2016
2017/18
 
 
FISCAL IMPLICATIONS:
 
None to state.
 
 
EFFECTIVE DATE:
Shall be effective after 60 days.

A00453 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           453
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 9, 2019
                                       ___________
 
        Introduced  by M. of A. STECK -- read once and referred to the Committee
          on Corporations, Authorities and Commissions
 
        AN ACT to amend the  limited  liability  company  law,  in  relation  to
          liability  of members for wages due to laborers, servants or employees
          by domestic and foreign limited liability companies
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision  (c)  of section 609 of the limited liability
     2  company law, as added by chapter 537 of the laws of 2014, is amended  to
     3  read as follows:
     4    (c) Notwithstanding the provisions of subdivisions (a) and (b) of this
     5  section, the ten members with the largest percentage ownership interest,
     6  as  determined as of the beginning of the period during which the unpaid
     7  services referred to in this section are performed,  of  every  domestic
     8  limited  liability company, or of any foreign limited liability company,
     9  when the unpaid services were performed in the state, shall jointly  and
    10  severally  be personally liable for all debts, wages or salaries due and
    11  owing to any of  its  laborers,  servants  or  employees,  for  services
    12  performed by them for such limited liability company. Before such labor-
    13  er,  servant  or employee shall charge such member for such services, he
    14  or she shall give notice in writing  to  such  member  that  he  or  she
    15  intends to hold such member liable under this section. Such notice shall
    16  be  given  within  one  hundred  eighty  days  after termination of such
    17  services. An action to enforce such liability shall be commenced  within
    18  ninety  days  after  the  return of an execution unsatisfied against the
    19  limited liability company upon a judgment recovered against it for  such
    20  services.  A  member  who  has  paid more than his or her pro rata share
    21  under this section shall be entitled to contribution pro rata  from  the
    22  other  members  liable  under this section with respect to the excess so
    23  paid, over and above his or her pro rata share, and may sue them jointly
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03563-01-9
        A. 453                              2
 
     1  or severally or any number of them to recover the amount due from  them.
     2  Such  recovery may be had in a separate action. As used in this subdivi-
     3  sion, "pro rata" means in proportion to percentage  ownership  interest.
     4  Before  a  member  may  claim contribution from other members under this
     5  section, he or she shall give them notice in  writing  that  he  or  she
     6  intends to hold them so liable to him or her.
     7    §  2.  This  act  shall take effect on the sixtieth day after it shall
     8  have become a law.

A00453 LFIN:

 
NO LFIN

A00453 Chamber Video/Transcript: