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A00486 Summary:

BILL NOA00486B
 
SAME ASSAME AS S02844-B
 
SPONSORRosenthal L (MS)
 
COSPNSRMosley, Gottfried, Otis, Weprin, Ortiz, Perry, Davila, Dinowitz, Simon, Miller MG, Lifton, Barron, Seawright, Richardson, Benedetto, Steck, Bronson, Crespo, Hunter, Rozic, Colton, Taylor, Pichardo, Epstein, Reyes, DeStefano, Zebrowski, Carroll, McMahon, Ramos, Jaffee, Cruz
 
MLTSPNSRCook, De La Rosa, Hevesi, Kim, Lentol, Rivera
 
Amd Lien L, generally; amd 199-a & 663, Lab L; amd 6201, 6210 & 6211, R6212, CPLR; amd 624 & 630, BC L; amd 609 & 1102, Lim Lil L
 
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.
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A00486 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A486B
 
SPONSOR: Rosenthal L (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 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 strengthens the 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 SPECIFIC 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. Section 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 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 wage s 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: 2017-18: A.628 - Third Reading Calendar; S.579 - Referred to Judiciary 2015-16: A.5501-D - Passed Assembly; S.2232-F - Referred to Judiciary   FISCAL IMPLICATIONS: Undetermined.
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