NY State Senate Bill 2023-S8452

Senate Bill S8452

2023-2024 Legislative Session

Authorizes the commissioner of labor and the workers' compensation board to issue stop-work orders

download bill text pdf

Current Bill Status - In Senate Committee Labor 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 31, 2024	referred to labor

2023-S8452 (ACTIVE) - Details

See Assembly Version of this Bill:: A9106
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §§21 & 224-b, add §21-g, Lab L; add §142-a, Work Comp L

2023-S8452 (ACTIVE) - Summary

Authorizes the commissioner of labor and the workers' compensation board to issue stop-work orders; establishes procedure for the issuance of such orders; establishes penalties for failure to comply with such orders.

2023-S8452 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8452

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the labor law and the workers' compensation law, in
relation to the issuing of stop-work orders

 
PURPOSE:

Amends the labor law and the worker's compensation law, in relation to
the issuing of stop-work orders.

 
SUMMARY OF PROVISIONS:

Section 1. This act shall be known and cited as the "stop workplace
abuse today (SWAT) act".

Section 2. Amends Section 21 of the labor law by adding new subdivision
17 to read. "Shall be authorized to issue stop-work orders as a result
of a violation of this chapter."

Section 3. Amends the labor law adding new section 21-g stating that
employees who violate worker protection legislation outlined in this
bill shall be subject to a stop-work order by the commissioner.

Section 4. Amends section 224-b of the labor law addressing evasion of
the new law and explains the consequences.

Section 5. Amends the worker's compensation law by adding a new section
142-a addressing consequences for employers who knowingly violate worker
protections, providing the definition of "knowing".

Section 6. This act shall take effect immediately.

 
JUSTIFICATION:

Every year in New York State, thousands of workers have their wages
stolen. From 2017 through 2021, Federal and State investigators found
more than 13,000 cases of wage theft, according to an analysis of two
databases obtained from the U.S. and New York Labor departments. The
databases provide previously unreported details on how much money has
been stolen from workers and also shed light on which businesses have
committed wage theft. In all, federal and state investigators determined
during the five-year period that more than $203 million in wages had
been stolen from about 127,000 workers in New York, the analysis shows.

This bill is needed to act as a preventative measure and increase the
likelihood that victims of wage theft will be able to secure payment of
wages due from their employers. Other states, such as New Jersey, have
proven that stop-work orders have acted as an effective measure to
secure wages. After an investigation by NJDOL's Division of Wage and
Hour Compliance that resulted in issuing stop-work orders that shuttered
the doors of 27 Boston Markets around the state, more than $630,000 in
back wages has been paid to 314 workers. New York State's workers are
owed the same protective measure allowed to others across the state.

 
FISCAL IMPACT:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S8452 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8452
 
                             I N  S E N A T E
 
                             January 31, 2024
                                ___________
 
 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 and  the  workers'  compensation  law,  in
   relation to the issuing of stop-work orders
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. This act shall be known and may be cited as the "stop work-
 place abuse today (SWAT) act".
   § 2. Section 21 of the labor law is amended by adding a  new  subdivi-
 sion 17 to read as follows:
   17.  SHALL  BE  AUTHORIZED  TO ISSUE STOP-WORK ORDERS AS A RESULT OF A
 VIOLATION OF THIS CHAPTER.
   § 3. The labor law is amended by adding a new section 21-g to read  as
 follows:
   § 21-G. STOP-WORK ORDERS. 1. IN ADDITION TO ANY OTHER PENALTIES, REME-
 DIES  OR SANCTIONS AS PROVIDED BY THIS CHAPTER, AN EMPLOYER WHO VIOLATES
 ARTICLE SIX (PAYMENT OF WAGES), ARTICLE  NINETEEN  (MINIMUM  WAGE  ACT),
 ARTICLE  NINETEEN-A  (MINIMUM  WAGE STANDARDS AND PROTECTIVE LABOR PRAC-
 TICES FOR FARM WORKERS),  SECTION  TWO  HUNDRED  TWELVE-A,  SECTION  TWO
 HUNDRED  TWELVE-B,  SECTION ONE HUNDRED SIXTY-ONE OR SECTION ONE HUNDRED
 SIXTY-TWO OF THIS CHAPTER, OR ANY RULE OR REGULATION PROMULGATED  THERE-
 UNDER,  AND  SUCH AGGREGATE AMOUNT EXCEEDS ONE THOUSAND DOLLARS SHALL BE
 SUBJECT TO A STOP-WORK ORDER BY  THE  COMMISSIONER.    THE  COMMISSIONER
 SHALL ALSO BE AUTHORIZED TO ISSUE A STOP-WORK ORDER IF THE DEPARTMENT IS
 MADE  AWARE  OF  ANY  LOCAL, CITY OR FEDERAL LABOR VIOLATION RELATING TO
 PAYMENT OF WAGES BY AN EMPLOYER AND THE COMMISSIONER DEEMS  A  STOP-WORK
 ORDER AN APPROPRIATE ACTION AS A RESULT OF SUCH VIOLATION.
   2.  A  STOP-WORK  ORDER  AGAINST  AN  EMPLOYER SHALL APPLY AGAINST ANY
 SUCCESSOR FIRM, CORPORATION, OR PARTNERSHIP OF THE EMPLOYER IN THE  SAME
 MANNER THAT IT APPLIES TO THE EMPLOYER.
   3.  WITHIN  SEVENTY-TWO HOURS OF FINDING A VIOLATION UNDER SUBDIVISION
 ONE OF THIS SECTION AFTER INVESTIGATION, THE COMMISSIONER  SHALL  NOTIFY
 SUCH  EMPLOYER IN WRITING OF THEIR INTENTION TO ISSUE A STOP-WORK ORDER.
 SUCH NOTICE SHALL: (A) BE SERVED IN A  MANNER  CONSISTENT  WITH  SECTION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13143-02-4
 S. 8452                             2
 
 THREE HUNDRED EIGHT OF THE CIVIL PRACTICE LAW AND RULES; (B) NOTIFY SUCH
 EMPLOYER OF THEIR RIGHT TO A HEARING; (C) NOTIFY SUCH EMPLOYER THAT THEY
 SHALL  HAVE  SEVENTY-TWO  HOURS  TO  ADDRESS THE VIOLATION OR VIOLATIONS
 BEFORE  THE  STOP-WORK  ORDER  WILL BE ISSUED; AND (D) STATE THE FACTUAL
 BASIS UPON WHICH THE COMMISSIONER HAS BASED THEIR DECISION  TO  ISSUE  A
 STOP-WORK ORDER AND HOW SUCH EMPLOYER SHALL COME INTO COMPLIANCE.
   4.  AFTER  RECEIPT OF SUCH NOTICE, THE EMPLOYER SHALL HAVE SEVENTY-TWO
 HOURS TO COME INTO COMPLIANCE AND TO NOTIFY  THE  COMMISSIONER  OF  SUCH
 COMPLIANCE. WITHIN SEVENTY-TWO HOURS AFTER THE EMPLOYER'S OPPORTUNITY TO
 COME  INTO COMPLIANCE, IF THE EMPLOYER HAS NOT COME INTO COMPLIANCE, THE
 COMMISSIONER SHALL ISSUE A STOP-WORK ORDER REQUIRING  THE  CESSATION  OF
 ALL  BUSINESS  OPERATIONS  OF  THE  EMPLOYER  AT EVERY SITE AT WHICH THE
 VIOLATION OCCURS.
   (A) A STOP-WORK ORDER SHALL TAKE EFFECT WHEN SERVED UPON THE  EMPLOYER
 OR WHEN SERVED AT THE WORKSITE.
   (B)  A  STOP-WORK  ORDER SHALL REMAIN IN EFFECT UNTIL THE COMMISSIONER
 ISSUES AN ORDER RELEASING THE STOP-WORK  ORDER  UPON  FINDING  THAT  THE
 EMPLOYER HAS COME INTO COMPLIANCE AND HAS PAID ANY PENALTY ASSESSED.
   5.  AN  EMPLOYER  WHO  IS  SUBJECT TO A STOP-WORK ORDER SHALL HAVE THE
 RIGHT TO APPLY TO THE COMMISSIONER, NOT MORE THAN  TEN  DAYS  AFTER  THE
 ORDER IS ISSUED, FOR A HEARING TO CONTEST WHETHER THE EMPLOYER COMMITTED
 THE VIOLATION ON WHICH THE ORDER WAS BASED.
   6.  FAILURE  OR REFUSAL TO COMPLY WITH A STOP-WORK ORDER ISSUED BY THE
 COMMISSIONER SHALL, IN ADDITION TO ANY  OTHER  PENALTIES  AUTHORIZED  BY
 LAW, RESULT IN THE ASSESSMENT OF A PENALTY OF NOT LESS THAN ONE THOUSAND
 DOLLARS AND NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH DAY THE EMPLOY-
 ER IS FOUND NOT TO BE IN COMPLIANCE.
   7.  AN EMPLOYEE AFFECTED BY A STOP-WORK ORDER PURSUANT TO THIS SECTION
 SHALL BE PAID THEIR REGULAR RATE FOR THE PERIOD THE STOP-WORK  ORDER  IS
 IN PLACE OR THE FIRST TEN DAYS THE EMPLOYEE WOULD HAVE BEEN SCHEDULED TO
 WORK  IF  THE STOP-WORK ORDER HAD NOT BEEN ISSUED, WHICHEVER IS LESS, BY
 THE EMPLOYER THAT WAS SERVED THE STOP-WORK ORDER.
   8. FOR THE PURPOSES OF THIS  SECTION,  THERE  SHALL  BE  A  REBUTTABLE
 PRESUMPTION  OF  UNLAWFUL  RETALIATION  IF  AN  EMPLOYER  IN  ANY MANNER
 DISCRIMINATES, RETALIATES, OR  TAKES  ANY  ADVERSE  ACTION  AGAINST  ANY
 EMPLOYEE  WITHIN  NINETY  DAYS  OF  THE  EMPLOYEE INITIATING A COMPLAINT
 PURSUANT TO THIS ARTICLE.
   § 4. Section 224-b of the labor law, as added by section 2 of part FFF
 of chapter 58 of the laws of 2020, is amended to read as follows:
   § 224-b. Stop-work orders. 1. (A) Where a complaint is received pursu-
 ant to this article, or where the fiscal  officer  OR  THE  COMMISSIONER
 upon  [his  or her] THEIR own investigation, finds cause to believe that
 any person, in connection with  the  performance  of  any  contract  for
 public  work  pursuant  to section two hundred twenty of this article or
 any covered project pursuant to section  two  hundred  twenty-four-a  of
 this  article, has substantially and materially failed to comply with or
 intentionally evaded the  provisions  of  this  [article]  CHAPTER,  the
 fiscal  officer OR THE COMMISSIONER may notify such person in writing of
 [his or her] THEIR intention to issue a  stop-work  order.  Such  notice
 shall  (i) be served WITHIN SEVENTY-TWO HOURS AFTER MAKING SUCH DETERMI-
 NATION THAT NOTICE IS REQUIRED; (II) BE SERVED in  a  manner  consistent
 with  section  three  hundred eight of the civil practice law and rules;
 [(ii)] (III) notify such person of [his or her] THEIR right to  a  hear-
 ing;  and  [(iii)]  (IV)  state  the factual basis upon which the fiscal
 officer OR THE COMMISSIONER has based [his or  her]  THEIR  decision  to
 issue  a  stop-work order.   Any documents, reports, or information that
 S. 8452                             3
 
 form a basis for such decision shall be provided to such person within a
 reasonable time before the hearing. Such hearing shall be  expeditiously
 conducted.
   (B)  AFTER RECEIPT OF SUCH NOTICE, THE EMPLOYER SHALL HAVE SEVENTY-TWO
 HOURS TO COME INTO COMPLIANCE AND TO NOTIFY  THE  COMMISSIONER  OF  SUCH
 COMPLIANCE.    WITHIN SEVENTY-TWO HOURS AFTER THE EMPLOYER'S OPPORTUNITY
 TO COME INTO COMPLIANCE,  THE FISCAL OFFICER OR THE  COMMISSIONER  SHALL
 ISSUE  A  STOP-WORK  ORDER REQUIRING THE CESSATION OF ALL BUSINESS OPER-
 ATIONS OF THE EMPLOYER AT EVERY SITE AT WHICH THE VIOLATION OCCURS.
   (C) Following the hearing, if the fiscal officer OR  THE  COMMISSIONER
 issues  a  CONTINUANCE  OF  SUCH  stop-work order, it shall be served by
 regular mail, and a second copy may be served  by  telefacsimile  or  by
 electronic  mail, with service effective upon receipt of any such order.
 Such stop-work order shall also be served with regard to a  worksite  by
 posting  a copy of such order in a conspicuous location at the worksite.
 The order shall remain in effect until the fiscal officer OR THE COMMIS-
 SIONER directs that the stop-work order be removed, upon a final  deter-
 mination  on  the complaint or where such failure to comply or evade has
 been deemed corrected. If the person against whom such order  is  issued
 shall  within thirty days after issuance of the stop-work order makes an
 application in affidavit form for a redetermination review of such order
 the fiscal officer shall make a decision in writing on the issues raised
 in such application. The fiscal officer may direct a conditional release
 from a stop-work order upon a finding that such person has  taken  mean-
 ingful  and good faith steps to comply with the provisions of this arti-
 cle.
   2. FAILURE OR REFUSAL TO COMPLY WITH A STOP-WORK ORDER ISSUED  BY  THE
 FISCAL  OFFICER  OR  THE  COMMISSIONER  SHALL,  IN ADDITION TO ANY OTHER
 PENALTIES PROVIDED BY LAW, RESULT IN THE ASSESSMENT OF A PENALTY OF  NOT
 LESS  THAN  ONE THOUSAND DOLLARS AND NOT MORE THAN FIVE THOUSAND DOLLARS
 FOR EACH DAY THE EMPLOYER IS FOUND NOT TO BE IN COMPLIANCE.
   § 5. The workers' compensation law is amended by adding a new  section
 142-a to read as follows:
   §  142-A.  STOP-WORK  ORDERS.   1. IN ADDITION TO ANY OTHER PENALTIES,
 REMEDIES OR SANCTIONS AS PROVIDED BY THIS ARTICLE, AN EMPLOYER WHO KNOW-
 INGLY FAILS TO PROVIDE WORKERS'  COMPENSATION  COVERAGE,  WHO  KNOWINGLY
 MISREPRESENTS  ONE  OR  MORE EMPLOYEES AS INDEPENDENT CONTRACTORS OR WHO
 KNOWINGLY PROVIDES FALSE, INCOMPLETE OR MISLEADING INFORMATION  CONCERN-
 ING  THE  NUMBER  OF EMPLOYEES, SHALL BE SUBJECT TO A STOP-WORK ORDER BY
 THE COMMISSIONER OF LABOR OR THE WORKERS' COMPENSATION BOARD.
   2. A VIOLATION OF SUBDIVISION ONE OF THIS SECTION SHALL BE  CONSIDERED
 TO BE "KNOWING" IF THE EMPLOYER:
   (A)  HAS  PREVIOUSLY  OBTAINED WORKERS' COMPENSATION INSURANCE AND THE
 INSURANCE HAS BEEN CANCELLED OR THE INSURANCE HAS NOT BEEN CONTINUED  OR
 RENEWED;
   (B)  HAS  BEEN ADVISED OF THE NEED FOR WORKERS' COMPENSATION INSURANCE
 BY THE DIVISION OF WORKERS' COMPENSATION OR  ANY  OTHER  AGENCY  OF  THE
 DEPARTMENT OF LABOR; OR
   (C)  HAS  HAD ONE OR MORE PREVIOUS VIOLATIONS OF WORKERS' COMPENSATION
 COVERAGE REQUIREMENTS, INCLUDING, BUT NOT LIMITED TO, FAILURE TO  OBTAIN
 WORKERS' COMPENSATION INSURANCE OR TO QUALIFY AS A SELF-INSURING EMPLOY-
 ER,  MISREPORTING OR MISREPRESENTATION OF THE NUMBER OF EMPLOYEES AND/OR
 MISREPORTING OR MISREPRESENTATION OF EMPLOYEES AS  INDEPENDENT  CONTRAC-
 TORS.
 S. 8452                             4
 
   3.  A  STOP-WORK  ORDER  AGAINST  AN  EMPLOYER SHALL APPLY AGAINST ANY
 SUCCESSOR FIRM, CORPORATION, OR PARTNERSHIP OF THE EMPLOYER IN THE  SAME
 MANNER THAT IT APPLIES TO THE EMPLOYER.
   4.  WITHIN SEVENTY-TWO HOURS OF FINDING A VIOLATION OF SUBDIVISION ONE
 OF THIS SECTION AFTER INVESTIGATION, THE BOARD SHALL NOTIFY SUCH EMPLOY-
 ER IN WRITING OF THEIR INTENTION TO ISSUE A STOP-WORK ORDER. SUCH NOTICE
 SHALL:  (A) BE SERVED IN A MANNER CONSISTENT WITH SECTION THREE  HUNDRED
 EIGHT  OF  THE CIVIL PRACTICE LAW AND RULES; (B) NOTIFY SUCH EMPLOYER OF
 THEIR RIGHT TO A HEARING; AND (C) STATE THE FACTUAL BASIS UPON WHICH THE
 BOARD OR THE COMMISSIONER OF LABOR HAS BASED THEIR DECISION TO  ISSUE  A
 STOP-WORK ORDER.
   5.  AFTER  RECEIPT OF SUCH NOTICE, THE EMPLOYER SHALL HAVE SEVENTY-TWO
 HOURS TO COME INTO COMPLIANCE AND TO NOTIFY  THE  COMMISSIONER  OF  SUCH
 COMPLIANCE.    WITHIN SEVENTY-TWO HOURS AFTER THE EMPLOYER'S OPPORTUNITY
 TO COME INTO COMPLIANCE, THE BOARD OR THE COMMISSIONER  OF  LABOR  SHALL
 ISSUE  A  STOP-WORK  ORDER REQUIRING THE CESSATION OF ALL BUSINESS OPER-
 ATIONS OF THE EMPLOYER AT EVERY SITE AT WHICH THE VIOLATION OCCURS.
   (A) A STOP-WORK ORDER SHALL TAKE EFFECT WHEN SERVED UPON THE  EMPLOYER
 OR WHEN SERVED AT THE WORKSITE.
   (B)  A  STOP-WORK  ORDER SHALL REMAIN IN EFFECT UNTIL THE BOARD OR THE
 COMMISSIONER OF LABOR ISSUES AN ORDER RELEASING THE STOP-WORK ORDER UPON
 FINDING THAT THE EMPLOYER HAS COME INTO  COMPLIANCE  AND  HAS  PAID  ANY
 PENALTY ASSESSED.
   6.  AN  EMPLOYER  WHO  IS  SUBJECT TO A STOP-WORK ORDER SHALL HAVE THE
 RIGHT TO APPLY TO THE BOARD OR THE COMMISSIONER OF LABOR, NOT MORE  THAN
 TEN DAYS AFTER THE ORDER IS ISSUED, FOR A HEARING TO CONTEST WHETHER THE
 EMPLOYER COMMITTED THE VIOLATION ON WHICH THE ORDER WAS BASED.
   7.  FAILURE  OR REFUSAL TO COMPLY WITH A STOP-WORK ORDER ISSUED BY THE
 BOARD OR THE COMMISSIONER OF LABOR  SHALL,  IN  ADDITION  TO  ANY  OTHER
 PENALTIES  PROVIDED BY LAW, RESULT IN THE ASSESSMENT OF A PENALTY OF NOT
 LESS THAN ONE THOUSAND DOLLARS AND NOT MORE THAN FIVE  THOUSAND  DOLLARS
 FOR  EACH DAY THE EMPLOYER IS FOUND NOT TO BE IN COMPLIANCE AND SHALL BE
 DIRECTED TO THE WORKERS'  COMPENSATION  FUND  OR  THE  HAZARD  ABATEMENT
 BOARD.
   § 6. This act shall take effect immediately.

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