S T A T E O F N E W Y O R K
________________________________________________________________________
3757
2017-2018 Regular Sessions
I N A S S E M B L Y
January 30, 2017
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Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend the limited liability company law, in relation to the
liability of members for wages due to laborers, servants or employees
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The limited liability company law is amended by adding a
new section 612 to read as follows:
§ 612. LIABILITY OF MEMBERS FOR WAGES DUE TO LABORERS, SERVANTS OR
EMPLOYEES. (A) NOTWITHSTANDING THE PROVISIONS OF SECTION SIX HUNDRED
NINE OF THIS ARTICLE, THE TEN LARGEST MEMBERS OF A LIMITED LIABILITY
COMPANY, AS DETERMINED BY THE FAIR VALUE OF THEIR BENEFICIAL INTEREST AS
OF THE BEGINNING OF THE PERIOD DURING WHICH THE UNPAID SERVICES REFERRED
TO IN THIS SECTION ARE PERFORMED, SHALL JOINTLY AND SEVERALLY BE
PERSONALLY LIABLE FOR ALL DEBTS, WAGES OR SALARIES DUE AND OWING TO ANY
OF ITS LABORERS, SERVANTS OR EMPLOYEES OTHER THAN CONTRACTORS, FOR
SERVICES PERFORMED BY THEM FOR SUCH LIMITED LIABILITY COMPANY. BEFORE
SUCH LABORER, 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 HIM OR HER LIABLE UNDER THIS SECTION. SUCH NOTICE
SHALL BE GIVEN WITHIN ONE HUNDRED EIGHTY DAYS AFTER TERMINATION OF SUCH
SERVICES, EXCEPT THAT IF, WITHIN SUCH PERIOD, THE LABORER, SERVANT OR
EMPLOYEE DEMANDS AN EXAMINATION OF THE RECORDS UNDER SUBDIVISION (B) OF
SECTION ONE THOUSAND ONE HUNDRED TWO OF THIS CHAPTER, SUCH NOTICE MAY BE
GIVEN WITHIN SIXTY DAYS AFTER HE OR SHE HAS BEEN GIVEN THE OPPORTUNITY
TO EXAMINE THE RECORDS. AN ACTION TO ENFORCE SUCH LIABILITY SHALL BE
COMMENCED WITHIN NINETY DAYS AFTER THE RETURN OF AN EXECUTION UNSATIS-
FIED AGAINST THE LIMITED LIABILITY COMPANY UPON A JUDGMENT RECOVERED
AGAINST IT FOR SUCH SERVICES.
(B) FOR THE PURPOSES OF THIS SECTION, WAGES OR SALARIES SHALL MEAN ALL
COMPENSATION AND BENEFITS PAYABLE BY AN EMPLOYER TO OR FOR THE ACCOUNT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07525-01-7
A. 3757 2
OF THE EMPLOYEE FOR PERSONAL SERVICES RENDERED BY SUCH EMPLOYEE. THESE
SHALL SPECIFICALLY INCLUDE BUT NOT LIMITED TO SALARIES, OVERTIME, VACA-
TION, HOLIDAY AND SEVERANCE PAY; EMPLOYER CONTRIBUTIONS TO OR PAYMENTS
OF INSURANCE OR WELFARE BENEFITS; EMPLOYER CONTRIBUTIONS TO PENSION OR
ANNUITY FUNDS; AND ANY OTHER MONEYS PROPERLY DUE OR PAYABLE FOR SERVICES
RENDERED BY SUCH EMPLOYEE.
(C) 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 BENEFICIAL SHARE INTEREST.
BEFORE A MEMBER MAY CLAIM CONTRIBUTION FROM OTHER MEMBERS UNDER THIS
SUBDIVISION, SUCH MEMBER SHALL, UNLESS HE OR SHE HAS BEEN GIVEN NOTICE
BY A LABORER, SERVANT OR EMPLOYEE UNDER SUBDIVISION (A) OF THIS SECTION,
GIVE THEM NOTICE IN WRITING THAT HE OR SHE INTENDS TO HOLD THEM SO
LIABLE TO HIM OR HER. SUCH NOTICE SHALL BE GIVEN BY HIM OR HER WITHIN
TWENTY DAYS AFTER THE DATE THAT NOTICE WAS GIVEN TO HIM OR HER BY A
LABORER, SERVANT OR EMPLOYEE UNDER SUBDIVISION (A) OF THIS SECTION.
§ 2. This act shall take effect immediately.