NY State Senate Bill 2019-S7665

Archive: Last Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 04, 2020	referred to labor

co-Sponsors

2019-S7665 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Add §198-e, Lab L
Versions Introduced in 2021-2022 Legislative Session:: S2766

2019-S7665 (ACTIVE) - Summary

Provides that a contractor making or taking a construction contract shall assume liability for any debt resulting from making a wage claim, 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.

2019-S7665 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7665

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the labor law, in relation to actions for non-payment of
wages

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to amend the existing wage theft law to
increase the likelihood that exploited workers in the construction
industry will be able to secure payment and collect unpaid wages and
benefits for work that has already been performed.

 
SUMMARY OF PROVISIONS:

Section one adds a new section 198-e to the labor law pertaining to
construction industry wage theft. Pursuant to this new section, a
construction contractor, as defined within, would assume liability for
any unpaid wages, benefits, damages, attorney fees related to a civil or

administrative action by a wage claimant or the Department of Labor
against a subcontractor, as defined within, of such contractor.

Section two provides a severability clause.

Section three establishes an effective date.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

Not applicable.

 
JUSTIFICATION:

This bill would provide New York construction workers with a new remedy
against wage theft. Currently a worker may bring a private lawsuit
against his/her direct employer to collect any unpaid wages, including
overtime and fringe benefits. This is a major issue in the construction
industry where, oftentimes, such direct employer is an unscrupulous
subcontractor or labor broker willing to hide assets, change corporate
identity and take part in other unscrupulous practices to avoid liabil-
ity and make themselves judgment proof from a wage theft action.

By holding the prime contractor of the construction project liable for
all subcontractors that it chooses to utilize on a jobsite, New York
State would go a long way towards ensuring that exploited construction
workers are quickly able to collect unpaid wages, while creating an
incentive for the construction industry to better self-police itself. In
turn, this will hopefully lead to a decreased burden on State and City
Agencies, including the Department of Labor and Workers' Compensation
Board, in terms of enforcement resources.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.
 
EFFECTIVE DATE:
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.

2019-S7665 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7665
 
                             I N  S E N A T E
 
                             February 4, 2020
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed 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

 S. 7665                             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.

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Senate Bill S7665

Sponsored By

Archive: Last Bill Status - In Senate Committee Labor Committee

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co-Sponsors

2019-S7665 (ACTIVE) - Details

2019-S7665 (ACTIVE) - Summary

2019-S7665 (ACTIVE) - Sponsor Memo

2019-S7665 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jessica Ramos

Archive: Last Bill Status - In Senate Committee Labor Committee

Actions

co-Sponsors

Alessandra Biaggi

Jen Metzger

James Skoufis

2019-S7665 (ACTIVE) - Details

2019-S7665 (ACTIVE) - Summary

2019-S7665 (ACTIVE) - Sponsor Memo

2019-S7665 (ACTIVE) - Bill Text download pdf

Comments