S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7773
 
                             I N  S E N A T E
 
                             January 11, 2022
                                ___________
 
 Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the labor law and the general business law, in  relation
   to  actions  for  non-payment  of wages; and to amend a chapter of the
   laws of 2021, amending the labor law  and  the  general  business  law
   relating  to actions for non-payment of wages, as proposed in legisla-
   tive bills numbers S. 2766-C and A. 3350-A, in relation to the  effec-
   tiveness thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1, 2, 4, 9 and 10  of  section  198-e  of  the
 labor law, as added by a chapter of the laws of 2021, amending the labor
 law  and the general business law relating to actions for non-payment of
 wages, as proposed in legislative bills numbers S. 2766-C and A. 3350-A,
 are amended to read as follows:
   1. A contractor making or taking a construction contract shall [assume
 liability] BE LIABLE for any debt resulting from an action under section
 one hundred ninety-eight of this article, owed to [a wage  claimant]  AN
 EMPLOYEE  or  third  party  on  the [wage claimant's] EMPLOYEE'S behalf,
 incurred by a subcontractor at any tier acting under,  by,  or  for  the
 contractor  or  its  subcontractors for the [wage claimant's] EMPLOYEE'S
 performance of labor. THE PROVISIONS OF THIS SECTION SHALL NOT BE DEEMED
 TO LIMIT THE LIABILITY OF A  SUBCONTRACTOR  UNDER  SECTION  ONE  HUNDRED
 NINETY-EIGHT OF THIS ARTICLE.
   2.  No  agreement  or release by an employee or subcontractor to waive
 liability [assigned to] OF a contractor  under  this  section  shall  be
 valid  except  as  otherwise  provided  herein.   The provisions of this
 section shall not be deemed to impair the  rights  of  a  contractor  to
 maintain  an  action  against a subcontractor for amounts for owed wages
 that are paid by a contractor pursuant to this section.
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04456-14-2
              

 S. 7773                             2
 
 section one hundred ninety-six-a of this article, to make a [wage] claim
 PURSUANT TO THIS SECTION on  his or her behalf.
   9.  [Any] A CONTRACTOR'S liability [assigned to a contractor] pursuant
 to the provisions of this section shall be  applicable  ONLY  for  [any]
 claims occurring no [later] EARLIER than three years prior to the initi-
 ation  of  such  claim  in  a  court  of  competent  jurisdiction or the
 commencement of a civil action brought forth by the attorney general  or
 department.  BEFORE BRINGING A CIVIL ACTION PURSUANT TO THIS SECTION, AN
 EMPLOYEE,  OR  THIRD  PARTY  ON  SUCH  EMPLOYEE'S  BEHALF, MUST GIVE THE
 CONTRACTOR NOTICE  OF  THE  ALLEGED  VIOLATION.  THE  NOTICE  NEED  ONLY
 DESCRIBE THE GENERAL NATURE OF THE CLAIM AND SHALL NOT LIMIT THE LIABIL-
 ITY  OF THE CONTRACTOR OR PRECLUDE SUBSEQUENT AMENDMENTS OF AN ACTION TO
 ENCOMPASS ADDITIONAL  EMPLOYEES  EMPLOYED  BY  THE  SUBCONTRACTOR.    AN
 EMPLOYEE,  OR  THIRD  PARTY  ON  SUCH EMPLOYEE'S BEHALF, MAY NOT BRING A
 CIVIL ACTION UNTIL TEN BUSINESS DAYS AFTER GIVING THE CONTRACTOR  NOTICE
 OF  THE  ALLEGED  VIOLATION  AND  MAY  NOT  BRING  A CIVIL ACTION IF THE
 CONTRACTOR CORRECTS THE ALLEGED VIOLATION. AN EMPLOYEE, OR  THIRD  PARTY
 ON  SUCH EMPLOYEE'S BEHALF, IS NOT REQUIRED TO GIVE NOTICE TO A CONTRAC-
 TOR PURSUANT TO THIS SUBDIVISION BEFORE BRINGING A CIVIL ACTION PURSUANT
 TO THIS SECTION IF ANY  EMPLOYEE,  OR  THIRD  PARTY  ON  ANY  EMPLOYEE'S
 BEHALF,  PREVIOUSLY  HAS  GIVEN  NOTICE  TO  SUCH CONTRACTOR OF THE SAME
 ALLEGED VIOLATION OR A PRIOR ALLEGED VIOLATION BY THE  SAME  SUBCONTRAC-
 TOR.  The  provisions  of  this section shall not be deemed to diminish,
 impair, or otherwise  infringe  on  any  other  rights  of  an  employee
 provided pursuant to this chapter, including the right of an employee to
 bring an action against any employer under the provisions of section one
 hundred ninety-eight of this article.
   10.  Nothing  in  this section shall be deemed to diminish the rights,
 privileges, or remedies of any employee under any collective  bargaining
 agreement.  [The]  ON  BEHALF  OF  AN  EMPLOYEE  SUBJECT TO A COLLECTIVE
 BARGAINING AGREEMENT, THE provisions of this section may be waived by  a
 collective   bargaining   agreement   with  a  bona  fide  building  and
 construction trade labor  organization  which  has  established  itself,
 and/or  its  affiliates, as the collective bargaining representative for
 persons performing work on a project, provided that for such  waiver  to
 be  valid, it shall explicitly reference this section.  Provided, howev-
 er, that such waiver shall not diminish  or  impair  the  rights  of  an
 employee provided under any other section of this chapter.
   §  2.  Subdivision  1 of section 756-f of the general business law, as
 added by a chapter of the laws of 2021, amending the labor law  and  the
 general  business  law  relating to actions for non-payment of wages, as
 proposed in legislative bills  numbers  S.  2766-C  and  A.  3350-A,  is
 amended to read as follows:
   1.  Upon  request of a contractor, or a contractor's subcontractor, to
 any subcontractor which performs any portion of work within the scope of
 the contractor's construction contract with an owner, such subcontractor
 shall provide certified payroll records which, at a minimum, contain all
 lawfully required information required BY ARTICLES SIX AND  NINETEEN  OF
 THE  LABOR  LAW  for  all employees providing labor on the project. Such
 payroll records shall contain  sufficient  information  to  apprise  the
 contractor  or  subcontractor  of such subcontractor's payment status in
 paying wages and [making any applicable fringe or other benefit payments
 or contributions to a third  party  on  its]  BENEFITS,  AS  DEFINED  BY
 SECTION  ONE HUNDRED NINETY-EIGHT-C OF THE LABOR LAW, INCLUDING PAYMENTS
 OR CONTRIBUTIONS ON THE employee's  behalf.  Payroll  records  shall  be
 marked  or  redacted to an extent only to prevent disclosure of an indi-
 S. 7773                             3
 
 vidual's full social security number but shall  provide  the  last  four
 digits of the social security number.
   §  3.  Section  4 of a chapter of the laws of 2021, amending the labor
 law and the general business law relating to actions for non-payment  of
 wages, as proposed in legislative bills numbers S. 2766-C and A. 3350-A,
 is amended to read as follows:
   § 4. 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  AND  SHALL  ONLY APPLY TO WAGES, BENEFITS, AND/OR WAGE SUPPLEMENTS
 EARNED ON OR AFTER SUCH EFFECTIVE DATE.
   § 4. This act shall take effect immediately; provided,  however,  that
 sections  one and two of this act shall take effect on the same date and
 in the same manner as a chapter of the laws of 2021, amending the  labor
 law  and the general business law relating to actions for non-payment of
 wages, as proposed in legislative bills numbers S. 2766-C and A. 3350-A,
 takes effect.