Senate Bill S6727B

2019-2020 Legislative Session

Relates to the liability of payroll processing companies

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Archive: Last Bill Status - In Assembly 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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Bill Amendments

2019-S6727 - Details

Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §11-108, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2021-2022: S761
2023-2024: S533

2019-S6727 - Summary

Relates to the liability of payroll processing companies; provides that payroll processing companies that intentionally and wrongfully prevent the distribution of payroll shall be liable to employees that failed to receive an expected payment for an amount up to three times the expected amount; and provides an action to recover damages may be maintained as a class action.

2019-S6727 - Sponsor Memo

2019-S6727 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6727
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                            September 18, 2019
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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



              

2019-S6727A - Details

Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §11-108, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2021-2022: S761
2023-2024: S533

2019-S6727A - Summary

Relates to the liability of payroll processing companies; provides that payroll processing companies that intentionally and wrongfully prevent the distribution of payroll shall be liable to employees that failed to receive an expected payment for an amount up to three times the expected amount; and provides an action to recover damages may be maintained as a class action.

2019-S6727A - Sponsor Memo

2019-S6727A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6727--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                            September 18, 2019
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  recommitted  to
   the Committee on Judiciary in accordance with Senate Rule 6, sec. 8 --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee

 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  AND
 WRONGFULLY  PREVENTS  THE  DISTRIBUTION  OF SUCH PAYROLL PURSUANT TO THE
 CONTRACT WITH THE EMPLOYER SHALL BE LIABLE TO AN EMPLOYEE OF THE EMPLOY-
 ER 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,
 NOTWITHSTANDING  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.
                                                            LBD13797-02-0



              

2019-S6727B (ACTIVE) - Details

Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §11-108, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2021-2022: S761
2023-2024: S533

2019-S6727B (ACTIVE) - Summary

Relates to the liability of payroll processing companies; provides that payroll processing companies that intentionally and wrongfully prevent the distribution of payroll shall be liable to employees that failed to receive an expected payment for an amount up to three times the expected amount; and provides an action to recover damages may be maintained as a class action.

2019-S6727B (ACTIVE) - Sponsor Memo

2019-S6727B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6727--B
     Cal. No. 150
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                            September 18, 2019
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  recommitted  to
   the Committee on Judiciary in accordance with Senate Rule 6, sec. 8 --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- reported favorably from said  commit-
   tee,  ordered  to first and second report, ordered to a third reading,
   amended and ordered reprinted, retaining its place  in  the  order  of
   third reading
 
 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.    1.  FOR  THE
 PURPOSES OF THIS SECTION, "PAYROLL PROCESSING COMPANY" MEANS A PERSON OR
 BUSINESS  ENTITY  UNDER  CONTRACT  TO  AN EMPLOYER THAT: (A) CALCULATES,
 PROCESSES AND PRODUCES WAGE PAYMENTS TO THE EMPLOYER'S  EMPLOYEES  UNDER
 SUCH  EMPLOYER'S  FEDERAL  EMPLOYER IDENTIFICATION NUMBER; (B) WITHHOLDS
 AND REMITS APPLICABLE TAXES TO GOVERNMENT AGENCIES USING THE  EMPLOYER'S
 FEDERAL  EMPLOYMENT  IDENTIFICATION NUMBER; (C) ISSUES FEDERAL AND STATE
 INCOME TAX FORMS TO  THE  EMPLOYER'S  EMPLOYEES  USING  SUCH  EMPLOYER'S
 FEDERAL EMPLOYER IDENTIFICATION NUMBER; AND (D) CONDITIONS WAGE PAYMENTS
 TO  THE  EMPLOYER'S  EMPLOYEES ON THE ADVANCE RECEIPT OF FUNDS FROM SUCH
 EMPLOYER TO FULLY COVER SUCH  WAGE  PAYMENTS.  A  PERSON  ACTING  AS  AN
 EMPLOYER  UNDER 26 U.S.C. 3401(D)(1) THAT OTHERWISE MEETS THE DEFINITION
 OF A PAYROLL PROCESSING COMPANY SHALL NOT BE CONSIDERED A PAYROLL  PROC-
 ESSING  COMPANY IF THE PERSON ACTING AS AN EMPLOYER AND THE EMPLOYEE ARE
 SUBJECT  TO  A  COLLECTIVE  BARGAINING  AGREEMENT  AND  SUCH  COLLECTIVE
 BARGAINING AGREEMENT EXPRESSLY PROVIDES FOR THE RECOVERY OF UNPAID, LOST
 OR STOLEN WAGES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

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