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Assembly Bill A8712

2015-2016 Legislative Session

Relates to liability of members for wages due to laborers, servants or employees by domestic and foreign limited liability companies

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Archive: Last Bill Status - In Assembly Committee

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2015-A8712 (ACTIVE) - Details

See Senate Version of this Bill:
S7526
Current Committee:
Assembly Corporations, Authorities And Commissions
Law Section:
Limited Liability Company Law
Laws Affected:
Amd ยง609, Lim Lil L
Versions Introduced in Other Legislative Sessions:
2017-2018: A5131, S5966
2019-2020: A453, S2734

2015-A8712 (ACTIVE) - Summary

Relates to liability of members for wages due to laborers, servants or employees by domestic and foreign limited liability companies.

2015-A8712 (ACTIVE) - Bill Text download pdf 

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

                                  8712

                          I N  A S S E M B L Y

                            January 13, 2016
                               ___________

Introduced  by M. of A. STECK -- read once and referred to the Committee
  on Corporations, Authorities and Commissions

AN ACT to amend the  limited  liability  company  law,  in  relation  to
  liability  of members for wages due to laborers, servants or employees
  by domestic and foreign limited liability companies

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  (c)  of section 609 of the limited liability
company law, as added by chapter 537 of the laws of 2014, is amended  to
read as follows:
  (c) Notwithstanding the provisions of subdivisions (a) and (b) of this
section, the ten members with the largest percentage ownership interest,
as  determined as of the beginning of the period during which the unpaid
services referred to in this section are performed,  of  every  DOMESTIC
limited  liability company, OR OF ANY FOREIGN LIMITED LIABILITY COMPANY,
WHEN THE UNPAID SERVICES WERE PERFORMED IN THE STATE, shall jointly  and
severally  be personally liable for all debts, wages or salaries due and
owing to any of  its  laborers,  servants  or  employees,  for  services
performed by them for such limited liability company. Before such labor-
er,  servant  or employee shall charge such member for such services, he
or she shall give notice in writing  to  such  member  that  he  or  she
intends to hold such member liable under this section. Such notice shall
be  given  within  one  hundred  eighty  days  after termination of such
services. An action to enforce such liability shall be commenced  within
ninety  days  after  the  return of an execution unsatisfied against the
limited liability company upon a judgment recovered against it for  such
services.  A  member  who  has  paid more than his or her pro rata share
under this section shall be entitled to contribution pro rata  from  the
other  members  liable  under this section with respect to the excess so
paid, over and above his or her pro rata share, and may sue them jointly
or severally or any number of them to recover the amount due from  them.
Such  recovery may be had in a separate action. As used in this subdivi-
sion, "pro rata" means in proportion to percentage  ownership  interest.
Before  a  member  may  claim contribution from other members under this

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

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