S T A T E O F N E W Y O R K
________________________________________________________________________
542
2023-2024 Regular Sessions
I N A S S E M B L Y
January 9, 2023
___________
Introduced by M. of A. BURGOS, MITAYNES, SIMON, DARLING, COLTON, GONZA-
LEZ-ROJAS -- read once and referred to the Committee on Labor
AN ACT to amend the labor law, in relation to penalties for wilful false
statements for unemployment purposes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 594 of the labor law, as amended by section 16 of
part O of chapter 57 of the laws of 2013, subdivisions 1 and 2 as
amended by chapter 277 of the laws of 2021, is amended to read as
follows:
§ 594. [Reduction and recovery] RECOVERY of benefits and penalties for
wilful false statement.
(1) A claimant OR EMPLOYER who has wilfully made a false statement or
representation to obtain OR AVOID any benefit under the provisions of
this article shall [forfeit benefits for at least the first one but not
more than the first twenty effective weeks following discovery of such
offense for which he or she otherwise would have been entitled to
receive benefits. Such penalty shall apply only once with respect to
each such offense.
(2) For the purpose of subdivision four of section five hundred ninety
of this article, the claimant shall be deemed to have received benefits
for such forfeited effective weeks.
(3) The penalty provided in this section shall not be confined to a
single benefit year but shall no longer apply in whole or in part after
the expiration of two years from the date of the final determination.
Such two-year period shall be tolled during the time period a claimant
has an appeal pending.
(4)] BE SUBJECT TO THE PENALTIES SET FORTH IN THIS SECTION.
(2) A claimant shall refund all moneys received because of such false
statement or representation and pay a civil penalty in an amount equal
to the greater of one hundred dollars or fifteen percent of the total
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02055-01-3
A. 542 2
overpaid benefits determined pursuant to this section. AN EMPLOYER WHO
WILFULLY MADE A FALSE STATEMENT OR REPRESENTATION TO AVOID PAYMENT OF
ANY BENEFIT UNDER THE PROVISIONS OF THIS ARTICLE SHALL PAY A CIVIL
PENALTY IN AN AMOUNT EQUAL TO THE GREATER OF ONE HUNDRED DOLLARS OR
FIFTEEN PERCENT OF THE TOTAL BENEFIT DETERMINED PURSUANT TO THIS
SECTION. The penalties collected hereunder shall be deposited in the
fund. The penalties assessed under this subdivision shall apply and be
assessed for any benefits paid under federal unemployment and extended
unemployment programs administered by the department in the same manner
as provided in this article. The penalties in this section shall be in
addition to any penalties imposed under this chapter or any state or
federal criminal statute. No penalties or interest assessed pursuant to
this section may be deducted or withheld from benefits.
[(5)] (3) (a) Upon a determination based upon a willful false state-
ment or representation becoming final through exhaustion of appeal
rights or failure to exhaust hearing rights, the commissioner may
recover the amount found to be due by commencing a civil action, or by
filing with the county clerk of the county where the claimant resides
the final determination of the commissioner or the final decision by an
administrative law judge, the appeal board, or a court containing the
amount found to be due including interest and civil penalty. The commis-
sioner may only make such a filing with the county clerk when:
(i) The claimant has responded to requests for information prior to a
determination and such requests for information notified the claimant of
his or her rights to a fair hearing as well as the potential conse-
quences of an investigation and final determination under this section
including the notice required by subparagraph (iii) of paragraph (b) of
this subdivision. Additionally if the claimant requested a fair hearing
or appeal subsequent to a determination, that the claimant was present
either in person or through electronic means at such hearing, or subse-
quent appeal from which a final determination was rendered;
(ii) The commissioner has made efforts to collect on such final deter-
mination; and
(iii) The commissioner has sent a notice, in accordance with paragraph
(b) of this subdivision, of intent to docket such final determination by
first class or certified mail, return receipt requested, ten days prior
to the docketing of such determination.
(b) The notice required in subparagraph (iii) of paragraph (a) of this
subdivision shall include the following:
(i) That the commissioner intends to docket a final determination
against such claimant as a judgment;
(ii) The total amount to be docketed; and
(iii) Conspicuous language that reads as follows: "Once entered, a
judgment is good and can be used against you for twenty years, and your
money, including a portion of your paycheck and/or bank account, may be
taken. Also, a judgment will hurt your credit score and can affect your
ability to rent a home, find a job, or take out a loan."
§ 2. Section one of this act shall apply to all false statements and
representations determined on or after the effective date of this act
and all forfeited effective days determined prior to such effective date
shall remain in full force and effect for two years from the expiration
of the initial determination. For purposes of applying such forfeited
benefits, each effective day shall be considered twenty-five percent of
a claimant's weekly benefit rate.
§ 3. This act shall take effect on the sixtieth day after it shall
have become a law; provided, however, that the amendments to subdivi-
A. 542 3
sions 1 and 2 of section 594 of the labor law made by section one of
this act shall take effect on the same date and the same manner as chap-
ter 277 of the laws of 2021 takes effect or 30 days after the commis-
sioner of labor certifies that the department of labor has an informa-
tion technology system capable of accommodating the amendments in
chapter 277 of the laws of 2021, whichever occurs earlier.