senate Bill S6727

2019-2020 Legislative Session

Relates to the liability of payroll processing companies

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Current Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (11)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 28, 2020 referred to judiciary
delivered to assembly
passed senate
Jan 22, 2020 amended on third reading 6727b
Jan 21, 2020 advanced to third reading
Jan 15, 2020 2nd report cal.
Jan 14, 2020 1st report cal.150
Jan 08, 2020 print number 6727a
Jan 08, 2020 amend and recommit to judiciary
referred to judiciary
Sep 18, 2019 referred to rules

S6727 - Details

See Assembly Version of this Bill:
A8653
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §11-108, Gen Ob L

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.

S6727 - Sponsor Memo

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

S6727A - Details

See Assembly Version of this Bill:
A8653
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §11-108, Gen Ob L

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.

S6727A - Sponsor Memo

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

S6727B (ACTIVE) - Details

See Assembly Version of this Bill:
A8653
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §11-108, Gen Ob L

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.

S6727B (ACTIVE) - Sponsor Memo

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
                      [ ] is old law to be omitted.
                                                           LBD13797-10-0

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