Bill Text: NY A07182 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to the liability of members, managers and agents of every domestic and foreign limited liability company; relates to the powers, duties and authority of the commissioner of labor when an employer is a domestic or foreign corporation or limited liability company.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-07-06 - enacting clause stricken [A07182 Detail]
Download: New_York-2019-A07182-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7182 2019-2020 Regular Sessions IN ASSEMBLY April 11, 2019 ___________ Introduced by M. of A. CRESPO -- (at request of the Department of Labor) -- read once and referred to the Committee on Labor AN ACT to amend the limited liability company law, in relation to domes- tic and foreign limited liability companies; and to amend the labor law, in relation to the powers, duties and authority of the commis- sioner of labor when an employer is a domestic or foreign corporation or limited liability company The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (c) of section 609 of the limited liability 2 company law, as added by chapter 537 of the laws of 2014, is amended to 3 read as follows: 4 (c) Notwithstanding the provisions of subdivisions (a) and (b) of this 5 section, the ten members with the largest percentage ownership interest, 6 as determined as of the beginning of the period during which the unpaid 7 services referred to in this section are performed, of every domestic 8 limited liability company and every foreign limited liability company, 9 shall jointly and severally be personally liable for all debts, wages or 10 salaries due and owing to any of its laborers, servants or employees, 11 for services performed by them for such limited liability company. 12 Before such laborer, servant or employee shall charge such member for 13 such services, he or she shall give notice in writing to such member 14 that he or she intends to hold such member liable under this section. 15 Such notice shall be given within one hundred eighty days after termi- 16 nation of such services. An action to enforce such liability shall be 17 commenced within ninety days after the return of an execution unsatis- 18 fied against [the] such limited liability company upon a judgment recov- 19 ered against it for such services. A member who has paid more than his 20 or her pro rata share under this section shall be entitled to contrib- 21 ution pro rata from the other members liable under this section with 22 respect to the excess so paid, over and above his or her pro rata share, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09499-01-9A. 7182 2 1 and may sue them jointly or severally or any number of them to recover 2 the amount due from them. Such recovery may be had in a separate action. 3 As used in this subdivision, "pro rata" means in proportion to percent- 4 age ownership interest. Before a member may claim contribution from 5 other members under this section, he or she shall give them notice in 6 writing that he or she intends to hold them so liable to him or her. 7 § 2. Subdivision 1 of section 196 of the labor law is amended by 8 adding a new paragraph f to read as follows: 9 f. When an employer is a corporation or limited liability company, 10 including foreign as well as domestic, the commissioner's duties, powers 11 and authority shall include the following with respect to the ten larg- 12 est shareholders of such corporation, within the meaning of section six 13 hundred thirty of the business corporation law, or the ten members with 14 the largest percentage ownership interest in such limited liability 15 company, within the meaning of section six hundred nine of the limited 16 liability company law, in connection with an assignment, investigation, 17 proceeding, order, or judgment under this article, under section two 18 hundred fifteen, or under article eight, eight-A, nine, nineteen, nine- 19 teen-A or twenty-five-A of this chapter: 20 (i) to order the employer to identify such shareholders and members 21 and, if the employer shall fail to identify such shareholders within ten 22 days after an order under this subparagraph, to bring an action in the 23 name and on behalf of the people of the state of New York against such 24 employer in the supreme court to compel such employer to identify such 25 shareholders and members and pay a civil penalty of no more than ten 26 thousand dollars; 27 (ii) to serve written notices on such shareholders and members pursu- 28 ant to section six hundred thirty of the business corporation law and 29 section six hundred nine of the limited liability company law, on behalf 30 of laborers, servants or employees, within the time period prescribed by 31 those sections, which time period shall be tolled during the commission- 32 er's investigation; and 33 (iii) to name such shareholders and members in any order or judgement 34 within the scope of this paragraph and to hold such shareholders and 35 members jointly and severally liable for all wages, pay, and compen- 36 sation, together with interest assessed under this chapter, from the 37 date of any written notice pursuant to subparagraph (ii) of this para- 38 graph, which orders and judgements may be enforced as provided for under 39 this chapter, in lieu of actions commenced under section six hundred 40 thirty of the business corporation law and section six hundred nine of 41 the limited liability company law. 42 § 3. This act shall take effect immediately and shall apply to any 43 liabilities owed to laborers, servants or employees whose services had 44 not been terminated more than one hundred eighty days prior to the 45 effective date of this act.
