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Assembly Bill A5131

2017-2018 Legislative Session

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

download bill text pdf

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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2017-A5131 (ACTIVE) - Details

See Senate Version of this Bill:
S5966
Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
Limited Liability Company Law
Laws Affected:
Amd §609, Lim Lil L
Versions Introduced in Other Legislative Sessions:
2015-2016: A8712, S7526
2019-2020: A453, S2734

2017-A5131 (ACTIVE) - Summary

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

2017-A5131 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5131
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 6, 2017
                                ___________
 
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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