S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7182
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 11, 2019
                                ___________
 
 Introduced by M. of A. CRESPO -- (at request of the Department of Labor)
   -- read once and referred to the Committee on Labor
 
 AN ACT to amend the limited liability company law, in relation to domes-
   tic  and  foreign  limited liability companies; and to amend the labor
   law, in relation to the powers, duties and authority  of  the  commis-
   sioner  of labor when an employer is a domestic or foreign corporation
   or limited liability company
 
   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 AND EVERY FOREIGN LIMITED LIABILITY COMPANY,
 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 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 such member liable  under  this  section.
 Such  notice  shall be given within one hundred eighty days after termi-
 nation of such services. An action to enforce such  liability  shall  be
 commenced  within  ninety days after the return of an execution unsatis-
 fied against [the] SUCH limited liability company upon a judgment recov-
 ered 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 contrib-
 ution 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09499-01-9

 A. 7182                             2
 
 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 subdivision, "pro rata" means in proportion to  percent-
 age  ownership  interest.  Before  a  member may claim contribution from
 other members under this section, he or she shall give  them  notice  in
 writing that he or she intends to hold them so liable to him or her.
   §  2.  Subdivision  1  of  section  196 of the labor law is amended by
 adding a new paragraph f to read as follows:
   F. WHEN AN EMPLOYER IS A CORPORATION  OR  LIMITED  LIABILITY  COMPANY,
 INCLUDING FOREIGN AS WELL AS DOMESTIC, THE COMMISSIONER'S DUTIES, POWERS
 AND  AUTHORITY SHALL INCLUDE THE FOLLOWING WITH RESPECT TO THE TEN LARG-
 EST SHAREHOLDERS OF SUCH CORPORATION, WITHIN THE MEANING OF SECTION  SIX
 HUNDRED  THIRTY OF THE BUSINESS CORPORATION LAW, OR THE TEN MEMBERS WITH
 THE LARGEST PERCENTAGE OWNERSHIP  INTEREST  IN  SUCH  LIMITED  LIABILITY
 COMPANY,  WITHIN  THE MEANING OF SECTION SIX HUNDRED NINE OF THE LIMITED
 LIABILITY COMPANY LAW, IN CONNECTION WITH AN ASSIGNMENT,  INVESTIGATION,
 PROCEEDING,  ORDER,  OR  JUDGMENT  UNDER THIS ARTICLE, UNDER SECTION TWO
 HUNDRED FIFTEEN, OR UNDER ARTICLE EIGHT, EIGHT-A, NINE, NINETEEN,  NINE-
 TEEN-A OR TWENTY-FIVE-A OF THIS CHAPTER:
   (I)  TO  ORDER  THE EMPLOYER TO IDENTIFY SUCH SHAREHOLDERS AND MEMBERS
 AND, IF THE EMPLOYER SHALL FAIL TO IDENTIFY SUCH SHAREHOLDERS WITHIN TEN
 DAYS AFTER AN ORDER UNDER THIS SUBPARAGRAPH, TO BRING AN ACTION  IN  THE
 NAME  AND  ON BEHALF OF THE PEOPLE OF THE STATE OF NEW YORK AGAINST SUCH
 EMPLOYER IN THE SUPREME COURT TO COMPEL SUCH EMPLOYER TO  IDENTIFY  SUCH
 SHAREHOLDERS  AND  MEMBERS  AND  PAY A CIVIL PENALTY OF NO MORE THAN TEN
 THOUSAND DOLLARS;
   (II) TO SERVE WRITTEN NOTICES ON SUCH SHAREHOLDERS AND MEMBERS  PURSU-
 ANT  TO  SECTION  SIX HUNDRED THIRTY OF THE BUSINESS CORPORATION LAW AND
 SECTION SIX HUNDRED NINE OF THE LIMITED LIABILITY COMPANY LAW, ON BEHALF
 OF LABORERS, SERVANTS OR EMPLOYEES, WITHIN THE TIME PERIOD PRESCRIBED BY
 THOSE SECTIONS, WHICH TIME PERIOD SHALL BE TOLLED DURING THE COMMISSION-
 ER'S INVESTIGATION; AND
   (III) TO NAME SUCH SHAREHOLDERS AND MEMBERS IN ANY ORDER OR  JUDGEMENT
 WITHIN  THE  SCOPE  OF  THIS PARAGRAPH AND TO HOLD SUCH SHAREHOLDERS AND
 MEMBERS JOINTLY AND SEVERALLY LIABLE FOR ALL  WAGES,  PAY,  AND  COMPEN-
 SATION,  TOGETHER  WITH  INTEREST  ASSESSED UNDER THIS CHAPTER, FROM THE
 DATE OF ANY WRITTEN NOTICE PURSUANT TO SUBPARAGRAPH (II) OF  THIS  PARA-
 GRAPH, WHICH ORDERS AND JUDGEMENTS MAY BE ENFORCED AS PROVIDED FOR UNDER
 THIS  CHAPTER,  IN  LIEU  OF ACTIONS COMMENCED UNDER SECTION SIX HUNDRED
 THIRTY OF THE BUSINESS CORPORATION LAW AND SECTION SIX HUNDRED  NINE  OF
 THE LIMITED LIABILITY COMPANY LAW.
   §  3.  This  act  shall take effect immediately and shall apply to any
 liabilities owed to laborers, servants or employees whose  services  had
 not  been  terminated  more  than  one  hundred eighty days prior to the
 effective date of this act.