S T A T E O F N E W Y O R K
2013-2014 Regular Sessions
I N S E N A T E
January 9, 2013
Introduced by Sen. STAVISKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to money
judgments in satisfaction of actions brought by employees for unpaid
or underpaid wages; to amend the state finance law, in relation to
creating the employee wage safety fund; and to require dissemination
of certain information by the division of labor standards
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "wage safety act".
S 2. The civil practice law and rules is amended by adding a new
section 5020-b to read as follows:
S 5020-B. JUDGMENTS; TAXES PAID IN CERTAIN CASES. IN CASES OF MONEY
JUDGMENTS IN SATISFACTION OF ACTIONS BROUGHT BY EMPLOYEES FOR UNPAID OR
UNDERPAID WAGES, THE JUDGMENT DEBTOR SHALL BE REQUIRED TO PAY AN AMOUNT
EQUAL TO TEN PERCENT OF SUCH JUDGMENT INTO THE EMPLOYEE WAGE SAFETY FUND
ESTABLISHED IN SECTION NINETY-NINE-U OF THE STATE FINANCE LAW. MONIES
IN SUCH FUND SHALL BE AVAILABLE TO MAKE FULL OR PARTIAL PAYMENTS ON
JUDGMENTS FOR UNPAID OR UNDERPAID WAGES WHERE SUCH JUDGMENTS REMAIN
UNSATISFIED FOR A PERIOD OF TIME TO BE SPECIFIED BY THE COMMISSIONER OF
S 3. The state finance law is amended by adding a new section 99-u to
read as follows:
S 99-U. THE EMPLOYEE WAGE SAFETY FUND. 1. THERE IS HEREBY ESTABLISHED
IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF
TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "EMPLOYEE WAGE SAFETY
2. THE FUND SHALL CONSIST OF THE ADDITIONAL FEE OR SUCH CHARGE ON
MONEY JUDGMENTS ENTERED AGAINST EMPLOYERS ON CLAIMS FOR UNPAID OR UNDER-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 626 2
PAID WAGES PURSUANT TO SECTION FIVE THOUSAND TWENTY-B OF THE CIVIL PRAC-
TICE LAW AND RULES.
3. MONIES FROM THIS FUND SHALL BE PAYABLE TO EMPLOYEES WHO MEET THE
REQUIREMENTS SET FORTH IN SUBDIVISION FOUR OF THIS SECTION ON THE AUDIT
AND WARRANT OF THE COMPTROLLER BASED ON VOUCHERS CERTIFIED BY THE
COMMISSIONER OF LABOR.
4. THE COMMISSIONER OF LABOR SHALL CERTIFY VOUCHERS FOR PAYMENTS SET
FORTH IN SUBDIVISION THREE OF THIS SECTION UPON APPROVAL OF APPLICATIONS
BY EMPLOYEES FOR COMPENSATION OR PAYMENTS BY THE FUND FOR UNSATISFIED
MONEY JUDGMENTS WHICH WERE ENTERED AGAINST EMPLOYERS FOR UNPAID OR
UNDERPAID WAGES. THE COMMISSIONER OF LABOR MAY AUTHORIZE FULL OR
PARTIAL PAYMENT ON CLAIMS BASED UPON CRITERIA SET FORTH IN REGULATIONS
TO BE ADOPTED AND IN CONSIDERATION OF THE AMOUNTS AVAILABLE THEREFOR. A
JUDGMENT SHALL BE CONSIDERED UNSATISFIED WHERE THE DIVISION OF LABOR
STANDARDS IS UNABLE, AFTER REASONABLE EFFORTS ARE MADE, TO COLLECT SUCH
JUDGMENT AMOUNT FROM AN EMPLOYER OR FORMER EMPLOYER. AN EMPLOYEE MAKING
A CLAIM THROUGH THE DIVISION SHALL COOPERATE FULLY IN SUCH EFFORTS.
S 4. The department of labor, by and through the division of labor
standards shall require all applicants filing a complaint for unpaid
wages with the division to provide either his or her social security
number or, in case of a noncitizen or undocumented immigrant, his or her
tax identification number. The division shall inform each applicant of
his or her duty to report his or her income to the department of taxa-
tion and finance and shall provide him or her with an I-1099 tax form.
The division shall make available to all applicants instruction and
assistance in completing such forms, including but not limited to,
translation of such instructions for non-English speaking individuals or
those with limited English proficiency.
S 5. The commissioner of taxation and finance is hereby directed to
implement procedures to provide for the payment or partial payment of
income taxes due on judgments for unpaid or underpaid wages at the time
that the division of labor standards distributes an award to an eligible
S 6. The commissioner of labor is hereby authorized to promulgate any
rules or regulations necessary for the implementation of this act on or
before its effective date.
S 7. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2014.