A04283 Summary:
BILL NO | A04283 |
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SAME AS | SAME AS S02051 |
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SPONSOR | Steck |
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COSPNSR | Cruz, DeStefano, Epstein, Reyes, Simon |
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MLTSPNSR | |
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Amd §190, add §193-a, Lab L | |
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Includes bonus in the definition of wages for purposes of the labor law when the formula under which a bonus is determined is available to the employer or when the amount of a bonus has been declared; relates to the forfeit of wages. |
A04283 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)   BILL NUMBER: A4283 SPONSOR: Steck
  TITLE OF BILL: An act to amend the labor law, in relation to including bonus compen- sation in the definition of wages and forfeit of wages   PURPOSE OR GENERAL IDEA OF BILL: Labor Law 190(1) does not define bonus compensation as wages even if such bonus compensation is contractually due the employee and is fully earned. The bill corrects this defect in the law.   SUMMARY OF PROVISIONS: The bill provides that bonus compensation, if fully earned, will be treated as any other form of wages.   JUSTIFICATION: The Court of Appeals has held that bonus compensation is wages only if it is akin to commissions. This is unrealistic for many employees and contrary to the law in other States. Many employees who are not in sales have their bonus determined according to a formula based on firm profit. For example, there is no reason why stockbrokers' bonuses should receive protection as wages but the same not be true for the bonuses of stock analysts or any other employees who receive bonuses based on a favorable evaluation of their performance rather than based on specific sales.   LEGISLATIVE HISTORY: 2014: A7619 referred to labor 2015/16: A768 referred to labor 2017/18: A2500 referred to labor 2019/20: A0391 referred to labor 2020/22: A262 referred to labor   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately
A04283 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 4283 2023-2024 Regular Sessions IN ASSEMBLY February 14, 2023 ___________ Introduced by M. of A. STECK, CRUZ, DeSTEFANO, EPSTEIN, REYES, SIMON -- read once and referred to the Committee on Labor AN ACT to amend the labor law, in relation to including bonus compen- sation in the definition of wages and forfeit of wages The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 190 of the labor law, as amended 2 by chapter 328 of the laws of 1972, is amended and a new subdivision 10 3 is added to read as follows: 4 1. "Wages" means the earnings of an employee for labor or services 5 rendered, regardless of whether the amount of earnings is determined on 6 a time, piece, commission, bonus, or other basis. The term "wages" also 7 includes benefits or wage supplements as defined in section one hundred 8 ninety-eight-c of this article, except for the purposes of sections one 9 hundred ninety-one and one hundred ninety-two of this article. 10 10. "Bonus" constitutes wages as defined in subdivision one of this 11 section, regardless of the source of revenue, when (a) the formula under 12 which a bonus is determined is certain and all the data utilized in 13 calculating the amount of a bonus under the formula is available to the 14 employer or (b) when the amount of a bonus has been declared by the 15 employer. 16 § 2. The labor law is amended by adding a new section 193-a to read as 17 follows: 18 § 193-a. Wages non-forfeitable. All wages covered under this article 19 shall be non-forfeitable once the amount of the wage is known or can 20 with reasonable certainty be known. 21 § 3. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05472-01-3