senate Bill S626A

Relates to actions brought by employees for unpaid wages; and creates the employee wage safety fund

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO JUDICIARY
  • 08 / Jan / 2014
    • REFERRED TO JUDICIARY
  • 21 / Jan / 2014
    • AMEND AND RECOMMIT TO JUDICIARY
  • 21 / Jan / 2014
    • PRINT NUMBER 626A

Summary

Creates a fund for the compensation of unpaid or underpaid employees; requires the division of labor standards to provide instruction and assistance pertaining to tax filing and reporting requirements to persons who claim unpaid wages; directs the commissioner of taxation and finance to provide for the collection of income taxes from judgments for unpaid wages.

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Bill Details

See Assembly Version of this Bill:
A168A
Versions:
S626
S626A
Legislative Cycle:
2013-2014
Current Committee:
Senate Judiciary
Law Section:
Civil Practice Law and Rules
Laws Affected:
Add §5020-b, CPLR; add §99-v, St Fin L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S1534A, A5925A
2009-2010: S3192, A481

Sponsor Memo

BILL NUMBER:S626A

TITLE OF BILL: 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

PURPOSE OR GENERAL IDEA OF BILL:

Creates the Wage Safety Act. 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".
These funds 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 determined by the commissioner
of labor. The commissioner of taxation and finance will be 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 employee. The division of labor standards will provide people
with assistance in obtaining tax ID numbers and translation of tax
information if needed.

SUMMARY OF SPECIFIC PROVISIONS:

the civil practice law and rules is amended by adding a new section
5020-b: This bill will amend the civil practice law and rules, in
relation to money judgments in satisfaction of actions brought by
employees for unpaid or underpaid wages; the state finance law is
amended by adding a new section 99-u in relation to creating the
employee wage safety fund; and to require dissemination of certain
information by the division of labor standards.

JUSTIFICATION:

Employees who file a complaint for unpaid and underpaid wages with the
division of labor standards will be provided either a social security
number or, in case of noncitizen or undocumented immigrant, his or her
tax identification number. Each applicant will be advised of his or
her duty to report his or her income to the department of taxation and
finance and shall provide him or her with an I-1099 tax form.
Instructions and assistance, will be available to all applicants
completing such forms, including but not limited to, translation of
such instructions for non-English speaking individuals or those with
limited English proficiency.

PRIOR LEGISLATIVE HISTORY:

This legislation was previously introduced.

FISCAL IMPLICATIONS:;

None to the state.


EFFECTIVE DATE:

This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2015.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 626--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary  --  recommitted
  to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

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-V 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
LABOR.
  S 3. The state finance law is amended by adding a new section 99-v  to
read as follows:
  S  99-V. THE EMPLOYEE WAGE SAFETY FUND. 1. THERE IS HEREBY ESTABLISHED
IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND  THE  COMMISSIONER  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03066-02-4

S. 626--A                           2

TAXATION  AND  FINANCE  A  FUND TO BE KNOWN AS THE "EMPLOYEE WAGE SAFETY
FUND."
  2.  THE  FUND  SHALL  CONSIST  OF THE ADDITIONAL FEE OR SUCH CHARGE ON
MONEY JUDGMENTS ENTERED AGAINST EMPLOYERS ON CLAIMS FOR UNPAID OR UNDER-
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
employee.
  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, 2015.

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