A04283 Summary:

COSPNSRCruz, DeStefano, Epstein, Reyes, Simon
Amd §190, add §193-a, Lab L
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.
Go to top    

A04283 Actions:

02/14/2023referred to labor
01/03/2024referred to labor
Go to top

A04283 Committee Votes:

Go to top

A04283 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

A04283 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  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
Go to top

A04283 Text:

                STATE OF NEW YORK
                               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.
Go to top