Legislation
SECTION 696-F
Penalties
Labor (LAB) CHAPTER 31, ARTICLE 19-D
* § 696-f. Penalties. 1. If the commissioner finds that any employer
has violated any provision of this article or of a rule or regulation
promulgated thereunder, the commissioner may, after an opportunity for a
hearing, and by an order which shall describe particularly the nature of
the violation, assess the employer a civil penalty of not more than ten
thousand dollars for the first such violation within six years, not more
than twenty thousand dollars for a second violation within six years and
not more than fifty thousand dollars for a third or subsequent violation
within six years. Such penalty shall be paid to the commissioner for
deposit in the treasury of the state. In assessing the amount of the
penalty, the commissioner shall give due consideration to the size of
the employer's business, the good faith of the employer, the gravity of
the violation, the history of previous violations and the failure to
comply with record-keeping or other requirements.
2. Any order issued under subdivision one of this section shall be
deemed a final order of the commissioner and not subject to review by
any court or agency unless the employer files a petition with the
industrial board of appeals for a review of the order, pursuant to
section one hundred one of this chapter.
3. The civil penalty provided for in this section shall be in addition
to and may be imposed concurrently with any other remedy or penalty
provided for in this chapter.
4. Upon a showing by an employee organization, the commissioner may
investigate by examining payroll records whether an employer withheld
hours of work to employees for the purpose of reducing the employer's
obligations under this article. If, after the opportunity for a hearing,
the commissioner determines that an employer withheld hours of work to
employees for the purpose of reducing the employer's obligations under
this article, the commissioner may, in addition to any other penalty
available, also require that the employer pay the standard benefits
supplement rate to all of the employer's employees, regardless of the
number of hours worked by the employees.
* NB Effective until January 1, 2026
* § 696-f. Civil action. 1. On behalf of any employee paid less than
the applicable standard rate to which the employee is entitled under the
provisions of this article, the commissioner may bring any legal action
necessary, including administrative action, to collect such claim, and
the employer shall be required to pay the full amount of the
underpayment, plus costs, and unless the employer proves a good faith
basis to believe that its underpayment was in compliance with the law,
an additional amount as liquidated damages. Liquidated damages shall be
calculated by the commissioner as no more than one hundred percent of
the total amount of underpayments found to be due the employee. In any
action brought by the commissioner in a court of competent jurisdiction,
liquidated damages shall be calculated as an amount equal to one hundred
percent of underpayments found to be due the employee.
2. Notwithstanding any other provision of law, an action to recover
upon a liability imposed by this article must be commenced within six
years. The statute of limitations shall be tolled from the date an
employee files a complaint with the commissioner or the commissioner
commences an investigation, whichever is earlier, until an order to
comply issued by the commissioner becomes final, or where the
commissioner does not issue an order, until the date on which the
commissioner notifies the complainant that the investigation has
concluded.
3. In any civil action by the commissioner, the commissioner shall
have the right to collect attorneys' fees and costs incurred in
enforcing any court judgment. Any judgment or court order awarding
remedies under this section shall provide that if any amounts remain
unpaid upon the expiration of ninety days following issuance of
judgment, or ninety days after expiration of the time to appeal and no
appeal therefrom is then pending, whichever is later, the total amount
of judgment shall automatically increase by fifteen percent.
* NB Effective January 1, 2026
has violated any provision of this article or of a rule or regulation
promulgated thereunder, the commissioner may, after an opportunity for a
hearing, and by an order which shall describe particularly the nature of
the violation, assess the employer a civil penalty of not more than ten
thousand dollars for the first such violation within six years, not more
than twenty thousand dollars for a second violation within six years and
not more than fifty thousand dollars for a third or subsequent violation
within six years. Such penalty shall be paid to the commissioner for
deposit in the treasury of the state. In assessing the amount of the
penalty, the commissioner shall give due consideration to the size of
the employer's business, the good faith of the employer, the gravity of
the violation, the history of previous violations and the failure to
comply with record-keeping or other requirements.
2. Any order issued under subdivision one of this section shall be
deemed a final order of the commissioner and not subject to review by
any court or agency unless the employer files a petition with the
industrial board of appeals for a review of the order, pursuant to
section one hundred one of this chapter.
3. The civil penalty provided for in this section shall be in addition
to and may be imposed concurrently with any other remedy or penalty
provided for in this chapter.
4. Upon a showing by an employee organization, the commissioner may
investigate by examining payroll records whether an employer withheld
hours of work to employees for the purpose of reducing the employer's
obligations under this article. If, after the opportunity for a hearing,
the commissioner determines that an employer withheld hours of work to
employees for the purpose of reducing the employer's obligations under
this article, the commissioner may, in addition to any other penalty
available, also require that the employer pay the standard benefits
supplement rate to all of the employer's employees, regardless of the
number of hours worked by the employees.
* NB Effective until January 1, 2026
* § 696-f. Civil action. 1. On behalf of any employee paid less than
the applicable standard rate to which the employee is entitled under the
provisions of this article, the commissioner may bring any legal action
necessary, including administrative action, to collect such claim, and
the employer shall be required to pay the full amount of the
underpayment, plus costs, and unless the employer proves a good faith
basis to believe that its underpayment was in compliance with the law,
an additional amount as liquidated damages. Liquidated damages shall be
calculated by the commissioner as no more than one hundred percent of
the total amount of underpayments found to be due the employee. In any
action brought by the commissioner in a court of competent jurisdiction,
liquidated damages shall be calculated as an amount equal to one hundred
percent of underpayments found to be due the employee.
2. Notwithstanding any other provision of law, an action to recover
upon a liability imposed by this article must be commenced within six
years. The statute of limitations shall be tolled from the date an
employee files a complaint with the commissioner or the commissioner
commences an investigation, whichever is earlier, until an order to
comply issued by the commissioner becomes final, or where the
commissioner does not issue an order, until the date on which the
commissioner notifies the complainant that the investigation has
concluded.
3. In any civil action by the commissioner, the commissioner shall
have the right to collect attorneys' fees and costs incurred in
enforcing any court judgment. Any judgment or court order awarding
remedies under this section shall provide that if any amounts remain
unpaid upon the expiration of ninety days following issuance of
judgment, or ninety days after expiration of the time to appeal and no
appeal therefrom is then pending, whichever is later, the total amount
of judgment shall automatically increase by fifteen percent.
* NB Effective January 1, 2026