Bill Text: NY S02734 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to liability of members for wages due to laborers, servants or employees by domestic and foreign limited liability companies.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2019-12-12 - signed chap.620 [S02734 Detail]

Download: New_York-2019-S02734-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          2734
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 29, 2019
                                       ___________
        Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions
        AN  ACT  to  amend  the  limited  liability  company law, in relation to
          liability of members for wages due to laborers, servants or  employees
          by domestic and foreign limited liability companies
          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, or of any foreign limited liability  company,
     9  when  the unpaid services were performed in the state, shall jointly and
    10  severally be personally liable for all debts, wages or salaries due  and
    11  owing  to  any  of  its  laborers,  servants  or employees, for services
    12  performed by them for such limited liability company. Before such labor-
    13  er, servant or employee shall charge such member for such  services,  he
    14  or  she  shall  give  notice  in  writing  to such member that he or she
    15  intends to hold such member liable under this section. Such notice shall
    16  be given within one  hundred  eighty  days  after  termination  of  such
    17  services.  An action to enforce such liability shall be commenced within
    18  ninety days after the return of an  execution  unsatisfied  against  the
    19  limited  liability company upon a judgment recovered against it for such
    20  services. A member who has paid more than his  or  her  pro  rata  share
    21  under  this  section shall be entitled to contribution pro rata from the
    22  other members liable under this section with respect to  the  excess  so
    23  paid, over and above his or her pro rata share, and may sue them jointly
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03563-01-9
        S. 2734                             2
     1  or  severally or any number of them to recover the amount due from them.
     2  Such recovery may be had in a separate action. As used in this  subdivi-
     3  sion,  "pro  rata" means in proportion to percentage ownership interest.
     4  Before  a  member  may  claim contribution from other members under this
     5  section, he or she shall give them notice in  writing  that  he  or  she
     6  intends to hold them so liable to him or her.
     7    §  2.  This  act  shall take effect on the sixtieth day after it shall
     8  have become a law.