NY State Senate Bill S2766

Current Bill Status - In Senate Committee Labor Committee

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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 25, 2021	referred to labor

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S2766 (ACTIVE) - Details

See Assembly Version of this Bill:: A3350
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Add §198-e, Lab L
Versions Introduced in 2019-2020 Legislative Session:: S7665, A9658

S2766 (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.

S2766 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S2766

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):

N/A

 
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:

2019-20: S7665/A9658 - Referred to Senate & Assembly Labor committees

 
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 date.

S2766 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2766
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 25, 2021
                                ___________
 
 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 OR ITS SUBCONTRACTORS 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.
   4. IN THE CASE OF A PRIVATE CIVIL ACTION BY AN EMPLOYEE, SUCH EMPLOYEE
 MAY DESIGNATE ANY PERSON, ORGANIZATION OR  COLLECTIVE  BARGAINING  AGENT
 AUTHORIZED  TO  FILE  A  COMPLAINT  WITH  THE  COMMISSIONER  PURSUANT TO
 SECTION ONE HUNDRED NINETY-SIX-A OF THIS ARTICLE, TO MAKE A  WAGE  CLAIM
 ON  HIS OR HER BEHALF.
   5.  IN  THE  CASE OF AN ACTION AGAINST A SUBCONTRACTOR, THE CONTRACTOR
 SHALL BE CONSIDERED JOINTLY AND SEVERALLY LIABLE FOR ANY  UNPAID  WAGES,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04456-02-1

 S. 2766                             2
 
 BENEFITS,  WAGE  SUPPLEMENTS,  PENALTIES, LIQUIDATED DAMAGES, ATTORNEYS'
 FEES AND ANY OTHER COSTS RESULTING FROM SUCH ACTION.
   6.  NOTHING HEREIN SHALL PRECLUDE THE ATTORNEY GENERAL FROM BRINGING A
 CIVIL ACTION TO COLLECT UNPAID WAGES AND PENALTIES ON BEHALF OF  EMPLOY-
 EES PURSUANT TO THIS SECTION.
   7. 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.
   B. "CONTRACTOR" MEANS  ANY  PERSON,  FIRM,  PARTNERSHIP,  CORPORATION,
 ASSOCIATION,   COMPANY,   ORGANIZATION  OR  OTHER  ENTITY,  INCLUDING  A
 CONSTRUCTION MANAGER, GENERAL OR PRIME CONTRACTOR, JOINT VENTURE, 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, AND/OR THE
 CONTRACTOR'S SUBCONTRACTORS TO PERFORM ANY PORTION OF  WORK  WITHIN  THE
 SCOPE  OF THE CONTRACTOR'S CONSTRUCTION CONTRACT WITH THE OWNER, INCLUD-
 ING WHERE THE SUBCONTRACTOR HAS NO DIRECT PRIVITY OF CONTRACT  WITH  THE
 CONTRACTOR.
   § 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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The New York State Senate

senate Bill S2766

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Current Bill Status - In Senate Committee Labor Committee

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Co-Sponsors

S2766 (ACTIVE) - Details

S2766 (ACTIVE) - Summary

S2766 (ACTIVE) - Sponsor Memo

S2766 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S2766

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Sponsored By

Current Bill Status - In Senate Committee Labor Committee

Your Voice

Actions

Co-Sponsors

S2766 (ACTIVE) - Details

S2766 (ACTIVE) - Summary

S2766 (ACTIVE) - Sponsor Memo

S2766 (ACTIVE) - Bill Text download pdf

Comments