Assemblymember Steck’s Legislation Preventing Wage Theft by Foreign LLCs Passes Assembly

Assemblymember Phil Steck (D-Colonie) announced that legislation he authored to prevent limited liability companies (LLCs) located in other countries and states from committing wage theft has passed the Assembly (A.5131). The bill holds foreign LLCs to the same standards as New York-based LLCs.

“I’ve seen firsthand during my time as a labor attorney the lengths certain companies will go to exploit their employees and avoid responsibility for paying wages to their employees,” Steck said. “Workers pour their hearts and souls into their jobs and deserve their hard-earned paychecks. This legislation protects them from unlawful business practices and ensures they aren’t being taken advantage of by shady companies looking to cheat them.”

To prevent potential wage theft, the bill holds the 10 largest partners of foreign LLCs responsible for paying back wages owed to New York employees if the company fails.

This measure furthers Steck’s commitment to New York workers. It builds on legislation he authored in 2015 that was signed into law to impose liability for unpaid wages on the 10 largest shareholders of an out-of-state corporation if a judgment is made that the corporation didn’t sufficiently pay New York employees (Ch. 421 of 2015). Steck also authored and passed legislation last year to crack down on unconscionable contracts that put New York employees and consumers at risk, including ones that force them into arbitration in other states (A.2855).