BILL NUMBER:A10933
TITLE OF BILL: An act to amend the labor law, in relation to increasing
the amount of liquidated damages for failure to pay wages as legally
required
PURPOSE: To ensure compliance with state labor laws regarding payment of
wages and fringe benefits by increasing and mandating civil penalties
for certain violations.
SUMMARY OF PROVISIONS: Amends section 198, subdivision 1-a, of the labor
law to increase liquidated damages on a wage claim from 25 percent to
twice the total amount of wages found to be due. Adds provisions that
the failure to pay wages either (1) must have persisted for more than
thirty days, or (2) involved the failure to pay the wages of ten or more
employees.
Adds anew subdivision to section 196 of the labor law to permit a class
action wage recovery suit.
JUSTIFICATION: Articles 6 and 19 of the labor law prohibit certain
employer actions, and require others, to ensure the workers receive
their due and just compensation. Article 19, the Minimum Wage Act,
controls the minimum wage. Article 6 determines the time limits within
which wages must be paid and requires every employer to pay the full
amount of wages, benefits and wage supplements due to employees. Article
S T A T E O F N E W Y O R K
________________________________________________________________________
10933
I N A S S E M B L Y
May 4, 2010
___________
Introduced by M. of A. ROBINSON -- read once and referred to the Commit-
tee on Labor
AN ACT to amend the labor law, in relation to increasing the amount of
liquidated damages for failure to pay wages as legally required
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1-a of section 198 of the labor law, as
amended by chapter 372 of the laws of 2009, is amended and a new subdi-
vision 4 is added to read as follows:
1-a. On behalf of any employee paid less than the wage to which he or
she is entitled under the provisions of this article, the commissioner
may bring any legal action necessary, including administrative action,
to collect such claim and as part of such legal action, in addition to
any other remedies and penalties otherwise available under this article,
the commissioner may assess against the employer an additional amount as
liquidated damages equal to twenty-five percent of the total amount of
wages found to be due, unless the employer proves a good faith basis for
believing that its underpayment of wages was in compliance with the law;
HOWEVER, IF SUCH UNDERPAYMENT OF WAGES PERSISTED FOR MORE THAN THIRTY
DAYS OR INVOLVED A FAILURE TO PAY THE WAGES OF TEN OR MORE EMPLOYEES,
THE COMMISSIONER MAY ASSESS AGAINST THE EMPLOYER AN ADDITIONAL AMOUNT AS
LIQUIDATED DAMAGES EQUAL TO TWICE THE TOTAL AMOUNT OF WAGES FOUND TO BE
DUE. In any action instituted in the courts upon a wage claim by an
employee or the commissioner in which the employee prevails, the court
shall allow such employee reasonable attorney's fees and, unless the
employer proves a good faith basis to believe that its underpayment of
wages was in compliance with the law, an additional amount as liquidated
damages equal to twenty-five percent of the total amount of the wages
found to be due; HOWEVER, IF SUCH UNDERPAYMENT OF WAGES PERSISTED FOR
MORE THAN THIRTY DAYS OR INVOLVED A FAILURE TO PAY THE WAGES OF TEN OR
MORE EMPLOYEES, THE COURT SHALL ALLOW SUCH ADDITIONAL AMOUNT AS LIQUI-
DATED DAMAGES EQUAL TO TWICE THE TOTAL AMOUNT OF THE WAGES FOUND TO BE
DUE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01280-06-0
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