S T A T E O F N E W Y O R K
________________________________________________________________________
8653
2019-2020 Regular Sessions
I N A S S E M B L Y
October 2, 2019
___________
Introduced by M. of A. FAHY -- read once and referred to the Committee
on Judiciary
AN ACT to amend the general obligations law, in relation to the liabil-
ity of payroll processing companies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general obligations law is amended by adding a new
section 11-108 to read as follows:
§ 11-108. LIABILITY OF PAYROLL PROCESSING COMPANY. NOTWITHSTANDING
ANY OTHER PROVISION OF LAW TO THE CONTRARY, ANY PERSON UNDER CONTRACT TO
AN EMPLOYER TO DISTRIBUTE THE EMPLOYER'S PAYROLL THAT INTENTIONALLY
PREVENTS THE DISTRIBUTION OF SUCH PAYROLL PURSUANT TO THE CONTRACT WITH
THE EMPLOYER SHALL BE LIABLE TO AN EMPLOYEE OF THE EMPLOYER THAT FAILED
TO RECEIVE AN EXPECTED PAYMENT FOR AN AMOUNT UP TO THREE TIMES THE
EXPECTED PAYMENT. LIABILITY UNDER THIS SECTION IS IN ADDITION TO ANY
OTHER APPLICABLE PENALTIES AND CAUSES OF ACTION. AN ACTION TO RECOVER
DAMAGES UNDER THIS SECTION MAY BE MAINTAINED AS A CLASS ACTION, NOTWITH-
STANDING SUBDIVISION B OF SECTION NINE HUNDRED ONE OF THE CIVIL PRACTICE
LAW AND RULES.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13797-01-9