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.
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.