Allows approved claims of representatives for services rendered to a claimant in connection with an unemployment insurance claim to become a lien upon the benefit allowed; criminalizes certain violations relating to other forms of compensation in connection with an unemployment insurance claim; provides that a fee allowed shall be on a contingency basis and be equal to fifteen percent of the amount of the benefits to be paid to the claimant at the conclusion of services rendered.
S T A T E O F N E W Y O R K
________________________________________________________________________
5054
2025-2026 Regular Sessions
I N A S S E M B L Y
February 11, 2025
___________
Introduced by M. of A. JACOBSON, STERN -- read once and referred to the
Committee on Labor
AN ACT to amend the labor law, in relation to the payment of fees
allowed for representation in unemployment compensation cases
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 538 of the labor law is amended by
adding a new paragraph (g) to read as follows:
(G) WHEN APPROVED BY THE APPEAL BOARD, CLAIMS OF REPRESENTATIVES FOR
SERVICES RENDERED TO A CLAIMANT IN CONNECTION WITH ANY CLAIM ARISING
UNDER THIS ARTICLE SHALL BECOME A LIEN UPON THE BENEFIT ALLOWED, BUT
SHALL BE PAID THEREFROM ONLY IN THE MANNER FIXED BY THE APPEAL BOARD AS
FOLLOWS:
(I) ANY OTHER PERSON, FIRM OR CORPORATION WHO SHALL EXACT OR RECEIVE
FEE OR GRATUITY FOR ANY SERVICES RENDERED ON BEHALF OF A CLAIMANT EXCEPT
IN AN AMOUNT DETERMINED BY THE APPEAL BOARD, SHALL BE GUILTY OF A MISDE-
MEANOR. ANY PERSON, FIRM OR CORPORATION WHO SHALL SOLICIT THE BUSINESS
OF APPEARING BEFORE THE APPEAL BOARD ON BEHALF OF A CLAIMANT, OR WHO
SHALL MAKE IT A BUSINESS TO SOLICIT EMPLOYMENT FOR A LAWYER IN
CONNECTION WITH ANY CLAIM FOR BENEFITS UNDER THIS ARTICLE SHALL BE GUIL-
TY OF A MISDEMEANOR.
(II) A FEE ALLOWED UNDER THIS PARAGRAPH SHALL UPON A CONTINGENCY BASIS
AND BE EQUAL TO FIFTEEN PERCENT OF THE AMOUNT OF THE BENEFITS TO BE PAID
TO THE CLAIMANT AT THE CONCLUSION OF SERVICES RENDERED. THIS SHALL BE
THE ONLY AMOUNT TO BE PAID TO THE REPRESENTATIVE UNLESS CHANGED BY A
COURT. THE REPRESENTATIVE MAY NOT CHARGE FOR OUT OF POCKET EXPENSES
INCLUDING BUT NOT LIMITED TO TELEPHONE, POSTAGE, OTHER OFFICE EXPENSES
AND TRAVEL. IN ORDER TO RECEIVE THIS FEE, THE REPRESENTATIVE AND THE
CLAIMANT MUST EXECUTE A RETAINER IN WHICH THE TERMS OF THE FEE ARRANGE-
MENT IS CLEARLY WRITTEN IN SIMPLE LANGUAGE. A SAMPLE RETAINER AGREEMENT
SHALL BE PRODUCED BY THE DEPARTMENT OF LABOR. THE APPLICATION FOR A FEE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03356-01-5
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