The New York State Senate

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

                                  9658

                          I N  A S S E M B L Y

                            February 3, 2020
                               ___________

Introduced by M. of A. CRESPO -- read once and referred to the Committee
  on Labor

AN ACT to amend the labor law, in relation to actions for non-payment of
  wages

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

  Section 1. The labor law is amended by adding a new section  198-e  to
read as follows:
  §  198-E.  CONSTRUCTION INDUSTRY WAGE THEFT. 1. A CONTRACTOR MAKING OR
TAKING A CONSTRUCTION CONTRACT  SHALL  ASSUME  LIABILITY  FOR  ANY  DEBT
RESULTING  FROM AN ACTION UNDER SECTION ONE HUNDRED NINETY-EIGHT OF THIS
ARTICLE, OWED TO A WAGE CLAIMANT OR THIRD PARTY ON THE  WAGE  CLAIMANT'S
BEHALF, INCURRED BY A SUBCONTRACTOR AT ANY TIER ACTING UNDER, BY, OR FOR
THE CONTRACTOR FOR THE WAGE CLAIMANT'S PERFORMANCE OF LABOR.
  2.  NO  AGREEMENT  OR RELEASE BY AN EMPLOYEE OR SUBCONTRACTOR TO WAIVE
LIABILITY ASSIGNED TO A CONTRACTOR UNDER THIS SECTION  SHALL  BE  VALID.
THE  PROVISIONS OF THIS SECTION SHALL NOT BE DEEMED TO IMPAIR THE RIGHTS
OF A CONTRACTOR TO MAINTAIN AN ACTION AGAINST A SUBCONTRACTOR  FOR  OWED
WAGES THAT ARE PAID BY A CONTRACTOR PURSUANT TO THIS SECTION.
  3.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE REMEDIES AVAILABLE
FOR A CLAIM PURSUANT TO SUBDIVISION ONE OF THIS SECTION  SHALL  ONLY  BE
CIVIL  AND  ADMINISTRATIVE  ACTIONS. IN THE CASE OF A CIVIL ACTION BY AN
EMPLOYEE, SUCH EMPLOYEE MAY DESIGNATE A THIRD PARTY TO MAKE A WAGE CLAIM
ON HIS OR HER BEHALF. IN THE CASE OF AN ACTION AGAINST A  SUBCONTRACTOR,
THE  CONTRACTOR SHALL BE CONSIDERED JOINTLY AND SEVERALLY LIABLE FOR ANY
UNPAID WAGES, BENEFITS, WAGE SUPPLEMENTS, PENALTIES, LIQUIDATED DAMAGES,
ATTORNEYS' FEES AND ANY OTHER COSTS RESULTING FROM SUCH ACTION.
  4. AS USED IN THIS SECTION:
  A. "CONSTRUCTION CONTRACT" MEANS A WRITTEN OR ORAL AGREEMENT  FOR  THE
CONSTRUCTION, RECONSTRUCTION, ALTERATION, MAINTENANCE, MOVING OR DEMOLI-
TION OF ANY BUILDING, STRUCTURE OR IMPROVEMENT, OR RELATING TO THE EXCA-
VATION  OF  OR OTHER DEVELOPMENT OR IMPROVEMENT TO LAND. FOR PURPOSES OF
THIS SECTION, A CONSTRUCTION CONTRACT SHALL  NOT  INCLUDE  ANY  CONTRACT
WHICH IS SUBJECT TO ARTICLE EIGHT OF THIS CHAPTER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD14453-04-0

A. 9658                             2

  B.  "CONTRACTOR"  MEANS  ANY  PERSON,  FIRM, PARTNERSHIP, CORPORATION,
ASSOCIATION,  COMPANY,  ORGANIZATION  OR  OTHER  ENTITY,   INCLUDING   A
CONSTRUCTION  MANAGER,  OR  ANY COMBINATION THEREOF, WHICH ENTERS INTO A
CONSTRUCTION CONTRACT WITH AN OWNER.
  C.  "OWNER" MEANS ANY PERSON, FIRM, PARTNERSHIP, CORPORATION, COMPANY,
ASSOCIATION OR OTHER ORGANIZATION OR OTHER ENTITY, OR A  COMBINATION  OF
ANY THEREOF, (WITH AN OWNERSHIP INTEREST, WHETHER THE INTEREST OR ESTATE
IS  IN FEE, AS VENDEE UNDER A CONTRACT TO PURCHASE, AS LESSEE OR ANOTHER
INTEREST OR ESTATE LESS THAN FEE) THAT CAUSES A BUILDING,  STRUCTURE  OR
IMPROVEMENT,  NEW  OR  EXISTING,  TO  BE CONSTRUCTED, ALTERED, REPAIRED,
MAINTAINED, MOVED OR DEMOLISHED OR THAT CAUSES LAND TO BE  EXCAVATED  OR
OTHERWISE DEVELOPED OR IMPROVED.
  D.  "SUBCONTRACTOR"  MEANS ANY PERSON, FIRM, PARTNERSHIP, CORPORATION,
COMPANY, ASSOCIATION, ORGANIZATION OR OTHER ENTITY, OR  ANY  COMBINATION
THEREOF,  WHICH  IS  A  PARTY TO A CONTRACT WITH A CONTRACTOR OR ANOTHER
SUBCONTRACTOR TO PERFORM A PORTION OF WORK PURSUANT  TO  A  CONSTRUCTION
CONTRACT.
  § 2. Severability. If any provision of this act, or any application of
any  provision of this act, is held to be invalid, that shall not affect
the validity or effectiveness of any other provision of this act, or  of
any  other  application of any provision of this act, which can be given
effect without that provision or  application;  and  to  that  end,  the
provisions and applications of this act are severable.
  § 3. This act shall take effect on the one hundred twentieth day after
it  shall  have  become  a law and shall apply to construction contracts
entered into, renewed, modified or amended on or  after  such  effective
date.