Bill Text: NY S02844 | 2019-2020 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to securing payment of wages for work already performed; creates a lien remedy for all employees; provides grounds for attachment; relates to procedures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft; relates to rights for victims of wage theft to hold the ten members with the largest ownership interests in a company personally liable for wage theft.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Vetoed) 2020-01-01 - VETOED MEMO.291 [S02844 Detail]
Download: New_York-2019-S02844-Amended.html
Bill Title: Relates to securing payment of wages for work already performed; creates a lien remedy for all employees; provides grounds for attachment; relates to procedures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft; relates to rights for victims of wage theft to hold the ten members with the largest ownership interests in a company personally liable for wage theft.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Vetoed) 2020-01-01 - VETOED MEMO.291 [S02844 Detail]
Download: New_York-2019-S02844-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 2844--A Cal. No. 492 2019-2020 Regular Sessions IN SENATE January 29, 2019 ___________ Introduced by Sens. RAMOS, BAILEY, BIAGGI, GIANARIS, GOUNARDES, JACKSON, KRUEGER, RIVERA, SALAZAR, SANDERS, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Judici- ary -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the lien law, in relation to employee liens; to amend the labor law, in relation to employee complaints; to amend the civil practice law and rules, in relation to grounds for attachment; to amend the business corporation law, in relation to streamlining proce- dures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft; and to amend the limit- ed liability company law, in relation to creating a right for victims of wage theft to hold the ten members with the largest ownership interests in a company personally liable for wage theft The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 2 of the lien law is amended by adding three new 2 subdivisions 21, 22 and 23 to read as follows: 3 21. Employee. The term "employee", when used in this chapter, shall 4 have the same meaning as "employee" pursuant to articles one, six, nine- 5 teen and nineteen-A of the labor law, as applicable, or the Fair Labor 6 Standards Act, 29 U.S.C. § 201 et. seq., as applicable. 7 22. Employer. The term "employer", when used in this chapter, shall 8 have the same meaning as "employer" pursuant to articles one, six, nine- 9 teen and nineteen-A of the labor law, as applicable, or the Fair Labor 10 Standards Act, 29 U.S.C. § 201 et. seq., as applicable. 11 23. Wage claim. The term "wage claim", when used in this chapter, 12 means a claim that an employee has suffered a violation of sections one 13 hundred seventy, one hundred ninety-three, one hundred ninety-six-d, six 14 hundred fifty-two or six hundred seventy-three of the labor law or the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00946-04-9S. 2844--A 2 1 related regulations and wage orders promulgated by the commissioner, a 2 claim for wages due to an employee pursuant to an employment contract 3 that were unpaid in violation of that contract, or a claim that an 4 employee has suffered a violation of 29 U.S.C. § 206 or 207. 5 § 2. Section 3 of the lien law, as amended by chapter 137 of the laws 6 of 1985, is amended to read as follows: 7 § 3. Mechanic's lien and employee's lien on [real] property. 1. 8 Mechanic's lien. A contractor, subcontractor, laborer, materialman, 9 landscape gardener, nurseryman or person or corporation selling fruit or 10 ornamental trees, roses, shrubbery, vines and small fruits, who performs 11 labor or furnishes materials for the improvement of real property with 12 the consent or at the request of the owner thereof, or of his agent, 13 contractor or subcontractor, and any trust fund to which benefits and 14 wage supplements are due or payable for the benefit of such laborers, 15 shall have a lien for the principal and interest, of the value, or the 16 agreed price, of such labor, including benefits and wage supplements due 17 or payable for the benefit of any laborer, or materials upon the real 18 property improved or to be improved and upon such improvement, from the 19 time of filing a notice of such lien as prescribed in this chapter. 20 Where the contract for an improvement is made with a husband or wife and 21 the property belongs to the other or both, the husband or wife contract- 22 ing shall also be presumed to be the agent of the other, unless such 23 other having knowledge of the improvement shall, within ten days after 24 learning of the contract give the contractor written notice of his or 25 her refusal to consent to the improvement. Within the meaning of the 26 provisions of this chapter, materials actually manufactured for but not 27 delivered to the real property, shall also be deemed to be materials 28 furnished. 29 2. Employee's lien. An employee who has a wage claim as that term is 30 defined in subdivision twenty-three of section two of this chapter shall 31 have a lien on his or her employer's interest in property for the value 32 of that employee's wage claim arising out of the employment, including 33 liquidated damages pursuant to subdivision one-a of section one hundred 34 ninety-eight, section six hundred sixty-three or section six hundred 35 eighty-one of the labor law, or 29 U.S.C. § 216 (b), from the time of 36 filing a notice of such lien as prescribed in this chapter. An employ- 37 ee's lien based on a wage claim may be had against the employer's inter- 38 est in real property and against the employer's interest in personal 39 property that can be sufficiently described within the meaning of 40 section 9-108 of the uniform commercial code, except that an employee's 41 lien shall not extend to deposit accounts or goods as those terms are 42 defined in section 9-102 of the uniform commercial code. The department 43 of labor and the attorney general may obtain an employee's lien for the 44 value of wage claims of the employees who are the subject of their 45 investigations, court actions or administrative agency actions. 46 3. As used in this article and unless otherwise specified, a lien 47 shall mean an employee's lien or a mechanic's lien. 48 § 3. Subdivisions 1 and 2 of section 4 of the lien law, subdivision 1 49 as amended by chapter 515 of the laws of 1929 and subdivision 2 as added 50 by chapter 704 of the laws of 1985, are amended to read as follows: 51 (1) [Such] A mechanic's or employee's lien and employee's lien against 52 real property shall extend to the owner's right, title or interest in 53 the real property and improvements, existing at the time of filing the 54 notice of lien, or thereafter acquired, except as hereinafter in this 55 article provided. If an owner assigns his interest in such real property 56 by a general assignment for the benefit of creditors, within thirty daysS. 2844--A 3 1 prior to such filing, the lien shall extend to the interest thus 2 assigned. If any part of the real property subjected to such lien be 3 removed by the owner or by any other person, at any time before the 4 discharge thereof, such removal shall not affect the rights of the 5 lienor, either in respect to the remaining real property, or the part so 6 removed. If labor is performed for, or materials furnished to, a 7 contractor or subcontractor for an improvement, the mechanic's lien 8 shall not be for a sum greater than the sum earned and unpaid on the 9 contract at the time of filing the notice of lien, and any sum subse- 10 quently earned thereon. In no case shall the owner be liable to pay by 11 reason of all mechanic's liens created pursuant to this article a sum 12 greater than the value or agreed price of the labor and materials 13 remaining unpaid, at the time of filing notices of such liens, except as 14 hereinafter provided. 15 (2) [Such] A mechanic's or employee's lien shall not extend to the 16 owner's right, title or interest in real property and improvements, 17 existing at the time of filing the notice of lien if such lien arises 18 from the failure of a lessee of the right to explore, develop or produce 19 natural gas or oil, to pay for, compensate or render value for improve- 20 ments made with the consent or at the request of such lessee by a 21 contractor, subcontractor, materialman, equipment operator or owner, 22 landscaper, nurseryman, or person or corporation who performs labor or 23 furnishes materials for the exploration, development, or production of 24 oil or natural gas or otherwise improves such leased property. Such 25 mechanic's or employee's lien shall extend to the improvements made for 26 the exploration, development and production of oil and natural gas, and 27 the working interest held by a lessee of the right to explore, develop 28 or produce oil and natural gas. 29 § 4. The opening paragraph of section 4-a of the lien law, as amended 30 by chapter 696 of the laws of 1959, is amended to read as follows: 31 The proceeds of any insurance which by the terms of the policy are 32 payable to the owner of real property improved, and actually received or 33 to be received by him because of the destruction or removal by fire or 34 other casualty of an improvement on which lienors have performed labor 35 or services or for which they have furnished materials, or upon which an 36 employee has established an employee's lien, shall after the owner has 37 been reimbursed therefrom for premiums paid by him, if any, for such 38 insurance, be subject to liens provided by this act to the same extent 39 and in the same order of priority as the real property would have been 40 had such improvement not been so destroyed or removed. 41 § 5. Subdivisions 1, 2 and 5 of section 9 of the lien law, as amended 42 by chapter 515 of the laws of 1929, are amended to read as follows: 43 1. The name of the lienor, and either the residence of the lienor or 44 the name and business address of the lienor's attorney, if any; and if 45 the lienor is a partnership or a corporation, the business address of 46 such firm, or corporation, the names of partners and principal place of 47 business, and if a foreign corporation, its principal place of business 48 within the state. 49 2. The name of the owner of the [real] property against whose interest 50 therein a lien is claimed, and the interest of the owner as far as known 51 to the lienor. 52 5. The amount unpaid to the lienor for such labor or materials, or the 53 amount of the wage claim if a wage claim is the basis for establishment 54 of the lien, the items of the wage claim and the value thereof which 55 make up the amount for which the lienor claims a lien.S. 2844--A 4 1 § 6. Subdivision 1 of section 10 of the lien law, as amended by chap- 2 ter 367 of the laws of 2011, is amended to read as follows: 3 1. (a) Notice of mechanic's lien may be filed at any time during the 4 progress of the work and the furnishing of the materials, or, within 5 eight months after the completion of the contract, or the final perform- 6 ance of the work, or the final furnishing of the materials, dating from 7 the last item of work performed or materials furnished; provided, howev- 8 er, that where the improvement is related to real property improved or 9 to be improved with a single family dwelling, the notice of mechanic's 10 lien may be filed at any time during the progress of the work and the 11 furnishing of the materials, or, within four months after the completion 12 of the contract, or the final performance of the work, or the final 13 furnishing of the materials, dating from the last item of work performed 14 or materials furnished; and provided further where the notice of mechan- 15 ic's lien is for retainage, the notice of mechanic's lien may be filed 16 within ninety days after the date the retainage was due to be released; 17 except that in the case of a mechanic's lien by a real estate broker, 18 the notice of mechanic's lien may be filed only after the performance of 19 the brokerage services and execution of lease by both lessor and lessee 20 and only if a copy of the alleged written agreement of employment or 21 compensation is annexed to the notice of lien, provided that where the 22 payment pursuant to the written agreement of employment or compensation 23 is to be made in installments, then a notice of lien may be filed within 24 eight months after the final payment is due, but in no event later than 25 a date five years after the first payment was made. For purposes of this 26 section, the term "single family dwelling" shall not include a dwelling 27 unit which is a part of a subdivision that has been filed with a munici- 28 pality in which the subdivision is located when at the time the lien is 29 filed, such property in the subdivision is owned by the developer for 30 purposes other than his personal residence. For purposes of this 31 section, "developer" shall mean and include any private individual, 32 partnership, trust or corporation which improves two or more parcels of 33 real property with single family dwellings pursuant to a common scheme 34 or plan. [The] 35 (b) Notice of employee's lien may be filed at any time not later than 36 three years following the end of the employment giving rise to the wage 37 claim. 38 (c) A notice of lien, other than for a lien on personal property, must 39 be filed in the clerk's office of the county where the property is situ- 40 ated. If such property is situated in two or more counties, the notice 41 of lien shall be filed in the office of the clerk of each of such coun- 42 ties. The county clerk of each county shall provide and keep a book to 43 be called the "lien docket," which shall be suitably ruled in columns 44 headed "owners," "lienors," "lienor's attorney," "property," "amount," 45 "time of filing," "proceedings had," in each of which he shall enter the 46 particulars of the notice, properly belonging therein. The date, hour 47 and minute of the filing of each notice of lien shall be entered in the 48 proper column. Except where the county clerk maintains a block index, 49 the names of the owners shall be arranged in such book in alphabetical 50 order. The validity of the lien and the right to file a notice thereof 51 shall not be affected by the death of the owner before notice of the 52 lien is filed. A notice of employee's lien on personal property must be 53 filed, together with a financing statement, in the filing office as set 54 forth in section 9-501 of the uniform commercial code. 55 § 7. Section 11 of the lien law, as amended by chapter 147 of the laws 56 of 1996, is amended to read as follows:S. 2844--A 5 1 § 11. Service of copy of notice of lien. 1. Within five days before 2 or thirty days after filing the notice of a mechanic's lien, the lienor 3 shall serve a copy of such notice upon the owner, if a natural person, 4 (a) by delivering the same to him personally, or if the owner cannot be 5 found, to his agent or attorney, or (b) by leaving it at his last known 6 place of residence in the city or town in which the real property or 7 some part thereof is situated, with a person of suitable age and 8 discretion, or (c) by registered or certified mail addressed to his last 9 known place of residence, or (d) if such owner has no such residence in 10 such city or town, or cannot be found, and he has no agent or attorney, 11 by affixing a copy thereof conspicuously on such property, between the 12 hours of nine o'clock in the forenoon and four o'clock in the afternoon; 13 if the owner be a corporation, said service shall be made (i) by deliv- 14 ering such copy to and leaving the same with the president, vice-presi- 15 dent, secretary or clerk to the corporation, the cashier, treasurer or a 16 director or managing agent thereof, personally, within the state, or 17 (ii) if such officer cannot be found within the state by affixing a copy 18 thereof conspicuously on such property between the hours of nine o'clock 19 in the forenoon and four o'clock in the afternoon, or (iii) by regis- 20 tered or certified mail addressed to its last known place of business. 21 Failure to file proof of such a service with the county clerk within 22 thirty-five days after the notice of lien is filed shall terminate the 23 notice as a lien. Until service of the notice has been made, as above 24 provided, an owner, without knowledge of the lien, shall be protected in 25 any payment made in good faith to any contractor or other person claim- 26 ing a lien. 27 2. Within five days before or thirty days after filing the notice of 28 an employee's lien, the lienor shall serve a copy of such notice upon 29 the employer, if a natural person, (a) by delivering the same to him 30 personally, or if the employer cannot be found, to his agent or attor- 31 ney, or (b) by leaving it as his last known place of residence or busi- 32 ness, with a person of suitable age and discretion, or (c) by registered 33 or certified mail addressed to his last known place of residence or 34 business, or (d) if such employer owns real property, by affixing a copy 35 thereof conspicuously on such property, between the hours of nine 36 o'clock in the forenoon and four o'clock in the afternoon. The lienor 37 also shall, within thirty days after filing the notice of employee's 38 lien, affix a copy thereof conspicuously on the real property identified 39 in the notice of employee's lien, between the hours of nine o'clock in 40 the forenoon and four o'clock in the afternoon. If the employer be a 41 corporation, said service shall be made (i) by delivering such copy to 42 and leaving the same with the president, vice-president, secretary or 43 clerk to the corporation, the cashier, treasurer or a director or manag- 44 ing agent thereof, personally, within the state, or (ii) if such officer 45 cannot be found within the state by affixing a copy thereof conspicuous- 46 ly on such property between the hours of nine o'clock in the forenoon 47 and four o'clock in the afternoon, or (iii) by registered or certified 48 mail addressed to its last known place of business, or (iv) by delivery 49 to the secretary of the department of state in the same manner as 50 required by subparagraph one of paragraph (b) of section three hundred 51 six of the business corporation law. Failure to file proof of such a 52 service with the county clerk within thirty-five days after the notice 53 of lien is filed shall terminate the notice as a lien. Until service of 54 the notice has been made, as above provided, an owner, without knowledge 55 of the lien, shall be protected in any payment made in good faith to any 56 other person claiming a lien.S. 2844--A 6 1 § 8. Section 11-b of the lien law, as amended by chapter 147 of the 2 laws of 1996, is amended to read as follows: 3 § 11-b. Copy of notice of mechanic's lien to a contractor or subcon- 4 tractor. Within five days before or thirty days after filing a notice 5 of mechanic's lien in accordance with section ten of this chapter or the 6 filing of an amendment of notice of mechanic's lien in accordance with 7 section twelve-a of this [chapter] article the lienor shall serve a copy 8 of such notice or amendment by certified mail on the contractor, subcon- 9 tractor, assignee or legal representative for whom he was employed or to 10 whom he furnished materials or if the lienor is a contractor or subcon- 11 tractor to the person, firm or corporation with whom the contract was 12 made. A lienor having a direct contractual relationship with a subcon- 13 tractor or a sub-subcontractor but not with a contractor shall also 14 serve a copy of such notice or amendment by certified mail to the 15 contractor. Failure to file proof of such a service with the county 16 clerk within thirty-five days after the notice of lien is filed shall 17 terminate the notice as a lien. Any lienor, or a person acting on behalf 18 of a lienor, who fails to serve a copy of the notice of mechanic's lien 19 as required by this section shall be liable for reasonable attorney's 20 fees, costs and expenses, as determined by the court, incurred in 21 obtaining such copy. 22 § 9. Subdivision 1 of section 12-a of the lien law, as amended by 23 chapter 1048 of the laws of 1971, is amended to read as follows: 24 1. Within sixty days after the original filing, a lienor may amend his 25 lien upon twenty days notice to existing lienors, mortgagees and the 26 owner, provided that no action or proceeding to enforce or cancel the 27 mechanics' lien or employee's lien has been brought in the interim, 28 where the purpose of the amendment is to reduce the amount of the lien, 29 except the question of wilful exaggeration shall survive such amendment. 30 § 10. Subdivision 1 of section 13 of the lien law, as amended by chap- 31 ter 878 of the laws of 1947, is amended to read as follows: 32 (1) [A] An employee's lien, or a lien for materials furnished or labor 33 performed in the improvement of real property, shall have priority over 34 a conveyance, mortgage, judgment or other claim against such property 35 not recorded, docketed or filed at the time of the filing of the notice 36 of such lien, except as hereinafter in this chapter provided; over 37 advances made upon any mortgage or other encumbrance thereon after such 38 filing, except as hereinafter in this article provided; and over the 39 claim of a creditor who has not furnished materials or performed labor 40 upon such property, if such property has been assigned by the owner by a 41 general assignment for the benefit of creditors, within thirty days 42 before the filing of either of such notices; and also over an attachment 43 hereafter issued or a money judgment hereafter recovered upon a claim, 44 which, in whole or in part, was not for materials furnished, labor 45 performed or moneys advanced for the improvement of such real property; 46 and over any claim or lien acquired in any proceedings upon such judg- 47 ment. Such liens shall also have priority over advances made upon a 48 contract by an owner for an improvement of real property which contains 49 an option to the contractor, his successor or assigns to purchase the 50 property, if such advances were made after the time when the labor began 51 or the first item of material was furnished, as stated in the notice of 52 lien. If several buildings are demolished, erected, altered or repaired, 53 or several pieces or parcels of real property are improved, under one 54 contract, and there are conflicting liens thereon, each lienor shall 55 have priority upon the particular part of the real property or upon the 56 particular building or premises where his labor is performed or hisS. 2844--A 7 1 materials are used. Persons shall have no priority on account of the 2 time of filing their respective notices of liens, but all liens shall be 3 on a parity except as hereinafter in section fifty-six of this chapter 4 provided; and except that in all cases laborers for daily or weekly 5 wages with a mechanic's lien, and employees with an employee's lien, 6 shall have preference over all other claimants under this article. 7 § 11. Section 17 of the lien law, as amended by chapter 324 of the 8 laws of 2000, is amended to read as follows: 9 § 17. Duration of lien. 1. (a) No mechanic's lien specified in this 10 article shall be a lien for a longer period than one year after the 11 notice of lien has been filed, unless within that time an action is 12 commenced to foreclose the lien, and a notice of the pendency of such 13 action, whether in a court of record or in a court not of record, is 14 filed with the county clerk of the county in which the notice of lien is 15 filed, containing the names of the parties to the action, the object of 16 the action, a brief description of the real property affected thereby, 17 and the time of filing the notice of lien; or unless an extension to 18 such lien, except for a lien on real property improved or to be improved 19 with a single family dwelling, is filed with the county clerk of the 20 county in which the notice of lien is filed within one year from the 21 filing of the original notice of lien, continuing such lien and such 22 lien shall be redocketed as of the date of filing such extension. Such 23 extension shall contain the names of the lienor and the owner of the 24 real property against whose interest therein such lien is claimed, a 25 brief description of the real property affected by such lien, the amount 26 of such lien, and the date of filing the notice of lien. No lien shall 27 be continued by such extension for more than one year from the filing 28 thereof. In the event an action is not commenced to foreclose the lien 29 within such extended period, such lien shall be extinguished unless an 30 order be granted by a court of record or a judge or justice thereof, 31 continuing such lien, and such lien shall be redocketed as of the date 32 of granting such order and a statement made that such lien is continued 33 by virtue of such order. A lien on real property improved or to be 34 improved with a single family dwelling may only be extended by an order 35 of a court of record, or a judge or justice thereof. No lien shall be 36 continued by court order for more than one year from the granting there- 37 of, but a new order and entry may be made in each of two successive 38 years. If a lienor is made a party defendant in an action to enforce 39 another lien, and the plaintiff or such defendant has filed a notice of 40 the pendency of the action within the time prescribed in this section, 41 the lien of such defendant is thereby continued. Such action shall be 42 deemed an action to enforce the lien of such defendant lienor. The fail- 43 ure to file a notice of pendency of action shall not abate the action as 44 to any person liable for the payment of the debt specified in the notice 45 of lien, and the action may be prosecuted to judgment against such 46 person. The provisions of this section in regard to continuing liens 47 shall apply to liens discharged by deposit or by order on the filing of 48 an undertaking. Where a lien is discharged by deposit or by order, a 49 notice of pendency of action shall not be filed. 50 (b) A lien, the duration of which has been extended by the filing of a 51 notice of the pendency of an action as above provided, shall neverthe- 52 less terminate as a lien after such notice has been canceled as provided 53 in section sixty-five hundred fourteen of the civil practice law and 54 rules or has ceased to be effective as constructive notice as provided 55 in section sixty-five hundred thirteen of the civil practice law and 56 rules.S. 2844--A 8 1 2. (a) No employee's lien on real property shall be a lien for a long- 2 er period than one year after the notice of lien has been filed, unless 3 an extension to such lien is filed with the county clerk of the county 4 in which the notice of lien is filed within one year from the filing of 5 the original notice of lien, continuing such lien and such lien shall be 6 redocketed as of the date of filing such extension. Such extension shall 7 contain the names of the lienor and the owner of the real property 8 against whose interest therein such lien is claimed, a brief description 9 of the property affected by such lien, the amount of such lien, and the 10 date of filing the notice of lien. No lien shall be continued by such 11 extension for more than one year from the filing thereof. In the event 12 an action is not commenced to obtain judgment on the wage claim or to 13 foreclose the lien within such extended period, such lien shall be auto- 14 matically extinguished unless an order be granted by a court of record 15 or a judge or justice thereof, continuing such lien, and such lien shall 16 be redocketed as of the date of granting such order and a statement made 17 that such lien is continued by virtue of such order. 18 (b) No employee's lien on personal property shall be a lien for a 19 longer period than one year after the financing statement has been 20 recorded, unless an extension to such lien, is filed with the filing 21 office in which the financing statement is required to be filed pursuant 22 to section 9-501 of the uniform commercial code within one year from the 23 filing of the original financing statement, continuing such lien. Such 24 extension shall contain the names of the lienor and the owner of the 25 property against whose interest therein such lien is claimed, a brief 26 description of the prior financing statement to be extended, and the 27 date of filing the prior financing statement. No lien shall be contin- 28 ued by such extension for more than one year from the filing thereof. In 29 the event an action is not commenced to obtain judgment on the wage 30 claim or to foreclose the lien within such extended period, such lien 31 shall be automatically extinguished unless an order be granted by a 32 court of record or a judge or justice thereof, continuing such lien, and 33 such lien shall be refiled as of the date of granting such order and a 34 statement made that such lien is continued by virtue of such order. 35 (c) If a lienor is made a party defendant in an action to enforce 36 another lien, and the plaintiff or such defendant has filed a notice of 37 the pendency of the action within the time prescribed in this section, 38 the lien of such defendant is thereby continued. Such action shall be 39 deemed an action to enforce the lien of such defendant lienor. The fail- 40 ure to file a notice of pendency of action shall not abate the action as 41 to any person liable for the payment of the debt specified in the notice 42 of lien, and the action may be prosecuted to judgment against such 43 person. The provisions of this section in regard to continuing liens 44 shall apply to liens discharged by deposit or by order on the filing of 45 an undertaking. Where a lien is discharged by deposit or by order, a 46 notice of pendency of action shall not be filed. 47 (d) Notwithstanding the foregoing, if a lienor commences a foreclosure 48 action or an action to obtain a judgment on the wage claim within one 49 year from the filing of the notice of lien on real property or the 50 recording of the financing statement creating lien on personal property, 51 the lien shall be extended during the pendency of the action and for one 52 hundred twenty days following the entry of final judgment in such 53 action, unless the action results in a final judgment or administrative 54 order in the lienor's favor on the wage claims and the lienor commences 55 a foreclosure action, in which instance the lien shall be valid during 56 the pendency of the foreclosure action, provided, that the lien will beS. 2844--A 9 1 automatically extinguished if, after a dismissal with prejudice of the 2 wage claims on which it is based, the lienor fails to file a notice of 3 appeal within the prescribed period to file a notice of appeal. If a 4 lien is extended due to the pendency of a foreclosure action or an 5 action to obtain a judgment on the wage claim, the lienor shall file a 6 notice of such pendency and extension with the county clerk of the coun- 7 ty in which the notice of lien is filed, containing the names of the 8 parties to the action, the object of the action, a brief description of 9 the property affected thereby, and the time of filing the notice of 10 lien, or in the case of a lien on personal property shall file such 11 notice with the office authorized to accept financing statements pursu- 12 ant to section 9-501 of the uniform commercial code. For purposes of 13 this section, an action to obtain judgment on a wage claim includes an 14 action brought in any court of competent jurisdiction, the submission of 15 a complaint to the department of labor or the submission of a claim to 16 arbitration pursuant to an arbitration agreement. An action also 17 includes an investigation of wage claims by the commissioner of labor or 18 the attorney general of the state of New York, regardless of whether 19 such investigation was initiated by a complaint. 20 (e) A lien, the duration of which has been extended by the filing of a 21 notice of the pendency of an action as above provided, shall neverthe- 22 less terminate as a lien after such notice has been canceled as provided 23 in section sixty-five hundred fourteen of the civil practice law and 24 rules or has ceased to be effective as constructive notice as provided 25 in section sixty-five hundred thirteen of the civil practice law and 26 rules. 27 § 12. Subdivisions 2 and 4 of section 19 of the lien law, subdivision 28 2 as amended by chapter 310 of the laws of 1962, subdivision 4 as added 29 by chapter 582 of the laws of 2002 and paragraph a of subdivision 4 as 30 further amended by section 104 of part A of chapter 62 of the laws of 31 2011, are amended to read as follows: 32 (2) By failure to begin an action to foreclose such lien or to secure 33 an order continuing it, within one year from the time of filing the 34 notice of lien, unless (i) an action be begun within the same period to 35 foreclose a mortgage or another mechanic's lien upon the same property 36 or any part thereof and a notice of pendency of such action is filed 37 according to law, or (ii) an action is commenced to obtain a judgment on 38 a wage claim pursuant to subdivision two of section seventeen of this 39 article, but a lien, the duration of which has been extended by the 40 filing of a notice of the pendency of an action as herein provided, 41 shall nevertheless terminate as a lien after such notice has been 42 cancelled or has ceased to be effective as constructive notice. 43 (4) Either before or after the beginning of an action by the employer, 44 owner or contractor executing a bond or undertaking in an amount equal 45 to one hundred ten percent of such lien conditioned for the payment of 46 any judgment which may be rendered against the property or employer for 47 the enforcement of the lien: 48 a. The execution of any such bond or undertaking by any fidelity or 49 surety company authorized by the laws of this state to transact busi- 50 ness, shall be sufficient; and where a certificate of qualification has 51 been issued by the superintendent of financial services under the 52 provisions of section one thousand one hundred eleven of the insurance 53 law, and has not been revoked, no justification or notice thereof shall 54 be necessary. Any such company may execute any such bond or undertaking 55 as surety by the hand of its officers, or attorney, duly authorized 56 thereto by resolution of its board of directors, a certified copy ofS. 2844--A 10 1 which resolution, under the seal of said company, shall be filed with 2 each bond or undertaking. Any such bond or undertaking shall be filed 3 with the clerk of the county in which the notice of lien is filed, and a 4 copy shall be served upon the adverse party. The undertaking is effec- 5 tive when so served and filed. If a certificate of qualification issued 6 pursuant to subsections (b), (c) and (d) of section one thousand one 7 hundred eleven of the insurance law is not filed with the undertaking, a 8 party may except, to the sufficiency of a surety and by a written notice 9 of exception served upon the adverse party within ten days after 10 receipt, a copy of the undertaking. Exceptions deemed by the court to 11 have been taken unnecessarily, or for vexation or delay, may, upon 12 notice, be set aside, with costs. Where no exception to sureties is 13 taken within ten days or where exceptions taken are set aside, the 14 undertaking shall be allowed. 15 b. In the case of bonds or undertakings not executed pursuant to para- 16 graph a of this subdivision, the employer, owner or contractor shall 17 execute an undertaking with two or more sufficient sureties, who shall 18 be free holders, to the clerk of the county where the premises are situ- 19 ated. The sureties must together justify in at least double the sum 20 named in the undertaking. A copy of the undertaking, with notice that 21 the sureties will justify before the court, or a judge or justice there- 22 of, at the time and place therein mentioned, must be served upon the 23 lienor or his attorney, not less than five days before such time. Upon 24 the approval of the undertaking by the court, judge or justice an order 25 shall be made by such court, judge or justice discharging such lien. 26 c. If the lienor cannot be found, or does not appear by attorney, 27 service under this subsection may be made by leaving a copy of such 28 undertaking and notice at the lienor's place of residence, or if a 29 corporation at its principal place of business within the state as stat- 30 ed in the notice of lien, with a person of suitable age and discretion 31 therein, or if the house of his abode or its place of business is not 32 stated in said notice of lien and is not known, then in such manner as 33 the court may direct. The premises, if any, described in the notice of 34 lien as the lienor's residence or place of business shall be deemed to 35 be his said residence or its place of business for the purposes of said 36 service at the time thereof, unless it is shown affirmatively that the 37 person servicing the papers or directing the service had knowledge to 38 the contrary. Notwithstanding the other provisions of this subdivision 39 relating to service of notice, in any case where the mailing address of 40 the lienor is outside the state such service may be made by registered 41 or certified mail, return receipt requested, to such lienor at the mail- 42 ing address contained in the notice of lien. 43 d. Except as otherwise provided in this subdivision, the provisions of 44 article twenty-five of the civil practice law and rules regulating 45 undertakings is applicable to a bond or undertaking given for the 46 discharge of a lien on account of private improvements or of an employ- 47 ee's lien. 48 § 13. Section 24 of the lien law, as amended by chapter 515 of the 49 laws of 1929, is amended to read as follows: 50 § 24. Enforcement of [mechanic's] lien. (1) Real property. The 51 [mechanics'] liens on real property specified in this article may be 52 enforced against the property specified in the notice of lien and which 53 is subject thereto and against any person liable for the debt upon which 54 the lien is founded, as prescribed in article three of this chapter. 55 (2) Personal property. An employee's lien on personal property speci- 56 fied in this article may immediately be enforced against the propertyS. 2844--A 11 1 through a foreclosure as prescribed in article nine of the uniform 2 commercial code, or upon judgment obtained by the employee, commissioner 3 of labor or attorney general of the state of New York, may be enforced 4 in any manner available to the judgment creditor pursuant to article 5 nine of the uniform commercial code or other applicable laws. 6 § 14. Section 26 of the lien law, as amended by chapter 373 of the 7 laws of 1977, is amended to read as follows: 8 § 26. Subordination of liens after agreement with owner. In case an 9 owner of real property shall execute to one or more persons, or a corpo- 10 ration, as trustee or trustees, a bond and mortgage or a note and mort- 11 gage affecting such property in whole or in part, or an assignment of 12 the moneys due or to become due under a contract for a building loan in 13 relation to such property, and in case such mortgage, if any, shall be 14 recorded in the office of the register of the county where such real 15 property is situated, or if such county has no register then in the 16 office of the clerk of such county, and in case such assignment, if any, 17 shall be filed in the office of the clerk of the county where such real 18 property is situated; and in case lienors having [mechanics'] liens 19 against said real property, notices of which have been filed up to and 20 not later than fifteen days after the recording of such mortgage or the 21 filing of such assignment, and which liens have not been discharged as 22 in this article provided, shall, to the extent of at least fifty-five 23 per centum of the aggregate amount for which such notices of liens have 24 been so filed, approve such bond and mortgage or such note and mortgage, 25 if any, and such assignment, if any, by an instrument or instruments in 26 writing, duly acknowledged and filed in the office of such county clerk, 27 then all mechanics' liens for labor performed or material furnished 28 prior to the recording of such mortgage or filing of such assignment, 29 whether notices thereof have been theretofore or are thereafter filed 30 and which have not been discharged as in this article provided, shall be 31 subordinate to the lien of such trust bond and mortgage or such trust 32 note and mortgage to the extent of the aggregate amount of all certif- 33 icates of interest therein issued by such trustee or trustees, or their 34 successors, for moneys loaned, materials furnished, labor performed and 35 any other indebtedness incurred after said trust mortgage shall have 36 been recorded, and for expenses in connection with said trust mortgage, 37 and shall also be subordinate to the lien of the bond and mortgage or 38 note and mortgage, given to secure the amount agreed to be advanced 39 under such contract for a building loan to the extent of the amount 40 which shall be advanced by the holder of such bond and mortgage or such 41 note and mortgage to the trustee or trustees, or their successors, under 42 such assignment. The provisions of this section shall apply to all bonds 43 and mortgages and notes and mortgages and all assignments of moneys due, 44 or to become due under building loan contracts executed by such owner, 45 in like manner, and recorded or filed, from time to time as hereinbefore 46 provided. In case of an assignment to trustees under the provisions of 47 this section, the trustees and their successors shall be the agents of 48 the assignor to receive and receipt for any and all sums advanced by the 49 holder of the building loan bond and mortgage or the building loan note 50 and mortgage under the building loan contract and such assignment. No 51 lienor shall have any priority over the bond and mortgage or note and 52 mortgage given to secure the money agreed to be advanced under a build- 53 ing loan contract or over the advances made thereunder, by reason of any 54 act preceding the making and approval of such assignment. 55 § 15. Section 38 of the lien law, as amended by chapter 859 of the 56 laws of 1930, is amended to read as follows:S. 2844--A 12 1 § 38. Itemized statement may be required of lienor. A lienor who has 2 filed a notice of mechanic's lien shall, on demand in writing, deliver 3 to the owner or contractor making such demand a statement in writing 4 which shall set forth the items of labor and/or material and the value 5 thereof which make up the amount for which he claims a lien, and which 6 shall also set forth the terms of the contract under which such items 7 were furnished. The statement shall be verified by the lienor or his 8 agent in the form required for the verification of notices in section 9 nine of this [chapter] article. If the lienor shall fail to comply with 10 such a demand within five days after the same shall have been made by 11 the owner or contractor, or if the lienor delivers an insufficient 12 statement, the person aggrieved may petition the supreme court of this 13 state or any justice thereof, or the county court of the county where 14 the premises are situated, or the county judge of such county for an 15 order directing the lienor within a time specified in the order to 16 deliver to the petitioner the statement required by this section. Two 17 days' notice in writing of such application shall be served upon the 18 lienor. Such service shall be made in the manner provided by law for the 19 personal service of a summons. The court or a justice or judge thereof 20 shall hear the parties and upon being satisfied that the lienor has 21 failed, neglected or refused to comply with the requirements of this 22 section shall have an appropriate order directing such compliance. In 23 case the lienor fails to comply with the order so made within the time 24 specified, then upon five days' notice to the lienor, served in the 25 manner provided by law for the personal service of a summons, the court 26 or a justice or judge thereof may make an order cancelling the lien. 27 § 16. Section 39 of the lien law, as added by chapter 859 of the laws 28 of 1930, is amended to read as follows: 29 § 39. Lien wilfully exaggerated is void. In any action or proceeding 30 to enforce a mechanic's lien upon a private or public improvement or an 31 employee's lien, or in which the validity of the lien is an issue, if 32 the court shall find that a lienor has wilfully exaggerated the amount 33 for which he claims a lien as stated in his notice of lien, his lien 34 shall be declared to be void and no recovery shall be had thereon. No 35 such lienor shall have a right to file any other or further lien for the 36 same claim. A second or subsequent lien filed in contravention of this 37 section may be vacated upon application to the court on two days' 38 notice. 39 § 17. Section 39-a of the lien law, as added by chapter 859 of the 40 laws of 1930, is amended to read as follows: 41 § 39-a. Liability of lienor where lien has been declared void on 42 account of wilful exaggeration. Where in any action or proceeding to 43 enforce a mechanic's lien upon a private or public improvement or an 44 employee's lien the court shall have declared said lien to be void on 45 account of wilful exaggeration the person filing such notice of lien 46 shall be liable in damages to the owner or contractor. The damages which 47 said owner or contractor shall be entitled to recover, shall include the 48 amount of any premium for a bond given to obtain the discharge of the 49 lien or the interest on any money deposited for the purpose of discharg- 50 ing the lien, reasonable attorney's fees for services in securing the 51 discharge of the lien, and, in an action or proceeding to enforce a 52 mechanic's lien, an amount equal to the difference by which the amount 53 claimed to be due or to become due as stated in the notice of lien 54 exceeded the amount actually due or to become due thereon. 55 § 18. Section 40 of the lien law, as amended by chapter 515 of the 56 laws of 1929, is amended to read as follows:S. 2844--A 13 1 § 40. Construction of article. This article is to be construed in 2 connection with article two of this chapter, and provides proceedings 3 for the enforcement of employee's liens on real property, as well as 4 liens for labor performed and materials furnished in the improvement of 5 real property, created by virtue of such article. 6 § 19. Section 41 of the lien law, as amended by chapter 807 of the 7 laws of 1952, is amended to read as follows: 8 § 41. Enforcement of mechanic's or employee's lien on real property. A 9 mechanic's lien or employee's lien on real property may be enforced 10 against such property, and against a person liable for the debt upon 11 which the lien is founded, by an action, by the lienor, his assignee or 12 legal representative, in the supreme court or in a county court other- 13 wise having jurisdiction, regardless of the amount of such debt, or in a 14 court which has jurisdiction in an action founded on a contract for a 15 sum of money equivalent to the amount of such debt. 16 § 20. Section 43 of the lien law, as amended by chapter 310 of the 17 laws of 1962, is amended to read as follows: 18 § 43. Action in a court of record; consolidation of actions. The 19 provisions of the real property actions and proceedings law relating to 20 actions for the foreclosure of a mortgage upon real property, and the 21 sale and the distribution of the proceeds thereof apply to actions in a 22 court of record, to enforce mechanics' liens and employees' liens on 23 real property, except as otherwise provided in this article. If actions 24 are brought by different lienors in a court of record, the court in 25 which the first action was brought, may, upon its own motion, or upon 26 the application of any party in any of such actions, consolidate all of 27 such actions. 28 § 21. Section 46 of the lien law, as amended by chapter 515 of the 29 laws of 1929, is amended to read as follows: 30 § 46. Action in a court not of record. If an action to enforce a 31 mechanic's lien or employee's lien against real property is brought in a 32 court not of record, it shall be commenced by the personal service upon 33 the owner of a summons and complaint verified in the same manner as a 34 complaint in an action in a court of record. The complaint must set 35 forth substantially the facts contained in the notice of lien, and the 36 substance of the agreement under which the labor was performed or the 37 materials were furnished, or if the lien is based upon a wage claim as 38 defined in section two of this chapter, the basis for such wage claim. 39 The form and contents of the summons shall be the same as provided by 40 law for the commencement of an action upon a contract in such court. The 41 summons must be returnable not less than twelve nor more than twenty 42 days after the date of the summons, or if service is made by publica- 43 tion, after the day of the last publication of the summons. Service 44 must be made at least eight days before the return day. 45 § 22. Section 50 of the lien law, as amended by chapter 515 of the 46 laws of 1929, is amended to read as follows: 47 § 50. Execution. Execution may be issued upon a judgment obtained in 48 an action to enforce a mechanic's lien or an employee's lien against 49 real property in a court not of record, which shall direct the officer 50 to sell the title and interest of the owner in the premises, upon which 51 the lien set forth in the complaint existed at the time of filing the 52 notice of lien. 53 § 23. Section 53 of the lien law, as amended by chapter 515 of the 54 laws of 1929, is amended to read as follows: 55 § 53. Costs and disbursements. If an action is brought to enforce a 56 mechanic's lien or an employee's lien against real property in a courtS. 2844--A 14 1 of record, the costs and disbursements shall rest in the discretion of 2 the court, and may be awarded to the prevailing party. The judgment 3 rendered in such an action shall include the amount of such costs and 4 specify to whom and by whom the costs are to be paid. If such action is 5 brought in a court not of record, they shall be the same as allowed in 6 civil actions in such court. The expenses incurred in serving the 7 summons by publication may be added to the amount of costs now allowed 8 in such court. 9 § 24. Section 59 of the lien law, as amended by chapter 515 of the 10 laws of 1929, is amended to read as follows: 11 § 59. Vacating of a [mechanic's] lien; cancellation of bond; return of 12 deposit, by order of court. 1. A mechanic's lien notice of which has 13 been filed on real property or a bond given to discharge the same may be 14 vacated and cancelled or a deposit made to discharge a lien pursuant to 15 section twenty of this chapter may be returned, by an order of a court 16 of record. Before such order shall be granted, a notice shall be served 17 upon the lienor, either personally or by leaving it as his last known 18 place of residence, with a person of suitable age, with directions to 19 deliver it to the lienor. Such notice shall require the lienor to 20 commence an action to enforce the lien, within a time specified in the 21 notice, not less than thirty days from the time of service, or show 22 cause at a special term of a court of record, or at a county court, in a 23 county in which the property is situated, at a time and place specified 24 therein, why the notice of lien filed or the bond given should not be 25 vacated and cancelled, or the deposit returned, as the case may be. 26 Proof of such service and that the lienor has not commenced the action 27 to foreclose such lien, as directed in the notice, shall be made by 28 affidavit, at the time of applying for such order. 29 2. An employee's lien notice of which has been filed on real property 30 or a bond given to discharge the same may be vacated and cancelled or a 31 deposit made to discharge a lien pursuant to section twenty of this 32 chapter may be returned, by an order of a court of record. Before such 33 order shall be granted, a notice shall be served upon the lienor, either 34 personally or by leaving it at his last known place of residence or 35 attorney's place of business, with a person of suitable age, with 36 directions to deliver it to the lienor. Such notice shall require the 37 lienor to commence an action to enforce the lien, or to commence an 38 action to obtain judgment on the wage claim upon which the lien was 39 established, within a time specified in the notice, not less than thirty 40 days from the time of service, or show cause at a special term of a 41 court of record, or at a county court, in a county in which the property 42 is situated, at a time and place specified therein, why the notice of 43 lien filed or the bond given should not be vacated and cancelled, or the 44 deposit returned, as the case may be. Proof of such service and that the 45 lienor has not commenced the action to foreclose such lien or an action 46 to obtain judgment on the wage claim upon which the lien was estab- 47 lished, as directed in the notice, shall be made by affidavit, at the 48 time of applying for such order. 49 § 25. Section 62 of the lien law, as amended by chapter 697 of the 50 laws of 1934, is amended to read as follows: 51 § 62. Bringing in new parties. A lienor who has filed a notice of lien 52 after the commencement of an action in a court of record to foreclose or 53 enforce an employee's lien or a mechanic's lien against real property or 54 a public improvement, may at any time up to and including the day 55 preceding the day on which the trial of such action is commenced, make 56 application upon notice to the plaintiff or his attorney in such action,S. 2844--A 15 1 to be made a party therein. Upon good cause shown, the court must order 2 such lienor to be brought in by amendment. If the application is made by 3 any other party in said action to make such lienor or other person a 4 party, the court may in its discretion direct such lienor or other 5 person to be brought in by like amendment. The order to be entered on 6 such application shall provide the time for and manner of serving the 7 pleading of such additional lienor or other person and shall direct that 8 the pleadings, papers and proceedings of the other several parties in 9 such action, shall be deemed amended, so as not to require the making or 10 serving of papers other than said order to effectuate such amendment, 11 and shall further provide that the allegations in the answer of such 12 additional lienor or other person shall, for the purposes of the action, 13 be deemed denied by the other parties therein. The action shall be so 14 conducted by the court as not to cause substantially any delay in the 15 trial thereof. The bringing in of such additional lienor or other 16 person shall be without prejudice to the proceedings had, and if the 17 action be on the calendar of the court, same shall retain its place on 18 such calendar without the necessity of serving a new note of issue and 19 new notices of trial. 20 § 26. Subdivision 3 of section 199-a of the labor law, as amended by 21 chapter 564 of the laws of 2010, is amended to read as follows: 22 3. Each employee and his or her authorized representative shall be 23 notified in writing, of the termination of the commissioner's investi- 24 gation of the employee's complaint and the result of such investigation, 25 of any award and collection of back wages and civil penalties, and of 26 any intent to seek criminal penalties. In the event that criminal penal- 27 ties are sought the employee and his or her authorized representative 28 shall be notified of the outcome of prosecution. 29 § 27. Subdivision 2 of section 663 of the labor law, as amended by 30 chapter 564 of the laws of 2010, is amended to read as follows: 31 2. By commissioner. On behalf of any employee paid less than the wage 32 to which the employee is entitled under the provisions of this article, 33 the commissioner may bring any legal action necessary, including admin- 34 istrative action, to collect such claim, and the employer shall be 35 required to pay the full amount of the underpayment, plus costs, and 36 unless the employer proves a good faith basis to believe that its under- 37 payment was in compliance with the law, an additional amount as liqui- 38 dated damages. Liquidated damages shall be calculated by the commission- 39 er as no more than one hundred percent of the total amount of 40 underpayments found to be due the employee. In any action brought by the 41 commissioner in a court of competent jurisdiction, liquidated damages 42 shall be calculated as an amount equal to one hundred percent of under- 43 payments found to be due the employee. Each employee or his or her 44 authorized representative shall be notified in writing of the outcome of 45 any legal action brought on the employee's behalf pursuant to this 46 section. 47 § 28. Subdivision 5 of section 6201 of the civil practice law and 48 rules, as amended by chapter 860 of the laws of 1977 and as renumbered 49 by chapter 618 of the laws of 1992, is amended and a new subdivision 6 50 is added to read as follows: 51 5. the cause of action is based on a judgment, decree or order of a 52 court of the United States or of any other court which is entitled to 53 full faith and credit in this state, or on a judgment which qualifies 54 for recognition under the provisions of article 53[.] of this chapter; 55 orS. 2844--A 16 1 6. the cause of action is based on wage claims. "Wage claims," when 2 used in this chapter, shall include any claims of violations of articles 3 five, six, and nineteen of the labor law, section two hundred fifteen of 4 the labor law, and the related regulations or wage orders promulgated by 5 the commissioner of labor, including but not limited to any claims of 6 unpaid, minimum, overtime, and spread-of-hours pay, unlawfully retained 7 gratuities, unlawful deductions from wages, unpaid commissions, unpaid 8 benefits and wage supplements, and retaliation, and any claims pursuant 9 to 18 U.S.C. § 1595, 29 U.S.C. § 201 et seq., and/or employment contract 10 as well as the concomitant liquidated damages and penalties authorized 11 pursuant to the labor law, the Fair Labor Standards Act, or any employ- 12 ment contract. 13 § 29. Section 6210 of the civil practice law and rules, as added by 14 chapter 860 of the laws of 1977, is amended to read as follows: 15 § 6210. Order of attachment on notice; temporary restraining order; 16 contents. Upon a motion on notice for an order of attachment, the court 17 may, without notice to the defendant, grant a temporary restraining 18 order prohibiting the transfer of assets by a garnishee as provided in 19 subdivision (b) of section 6214. When attachment is sought pursuant to 20 subdivision six of section 6201, and if the employer contests the 21 motion, the court shall hold a hearing within ten days of when the 22 employer's response to plaintiffs' motion for attachment is due. The 23 contents of the order of attachment granted pursuant to this section 24 shall be as provided in subdivision (a) of section 6211. 25 § 30. Subdivision (b) of section 6211 of the civil practice law and 26 rules, as amended by chapter 566 of the laws of 1985, is amended to read 27 as follows: 28 (b) Confirmation of order. Except where an order of attachment is 29 granted on the ground specified in subdivision one or six of section 30 6201, an order of attachment granted without notice shall provide that 31 within a period not to exceed five days after levy, the plaintiff shall 32 move, on such notice as the court shall direct to the defendant, the 33 garnishee, if any, and the sheriff, for an order confirming the order of 34 attachment. Where an order of attachment without notice is granted on 35 the ground specified in subdivision one or six of section 6201, the 36 court shall direct that the statement required by section 6219 be served 37 within five days, that a copy thereof be served upon the plaintiff, and 38 the plaintiff shall move within ten days after levy for an order 39 confirming the order of attachment. If the plaintiff upon such motion 40 shall show that the statement has not been served and that the plaintiff 41 will be unable to satisfy the requirement of subdivision (b) of section 42 6223 until the statement has been served, the court may grant one exten- 43 sion of the time to move for confirmation for a period not to exceed ten 44 days. If plaintiff fails to make such motion within the required period, 45 the order of attachment and any levy thereunder shall have no further 46 effect and shall be vacated upon motion. Upon the motion to confirm, the 47 provisions of subdivision (b) of section 6223 shall apply. An order of 48 attachment granted without notice may provide that the sheriff refrain 49 from taking any property levied upon into his actual custody, pending 50 further order of the court. 51 § 31. Subdivisions (b) and (e) of rule 6212 of the civil practice law 52 and rules, subdivision (b) as separately amended by chapters 15 and 860 53 of the laws of 1977 and subdivision (e) as added by chapter 860 of the 54 laws of 1977, are amended to read as follows: 55 (b) Undertaking. [On] 1. Except where an order of attachment is sought 56 on the ground specified in subdivision six of section 6201, on a motionS. 2844--A 17 1 for an order of attachment, the plaintiff shall give an undertaking, in 2 a total amount fixed by the court, but not less than five hundred 3 dollars, a specified part thereof conditioned that the plaintiff shall 4 pay to the defendant all costs and damages, including reasonable attor- 5 ney's fees, which may be sustained by reason of the attachment if the 6 defendant recovers judgment or if it is finally decided that the plain- 7 tiff was not entitled to an attachment of the defendant's property, and 8 the balance conditioned that the plaintiff shall pay to the sheriff all 9 of his allowable fees. 10 2. On a motion for an attachment pursuant to subdivision six of 11 section 6201, the court shall order that the plaintiff give an accessi- 12 ble undertaking of no more than five hundred dollars, or in the alterna- 13 tive, may waive the undertaking altogether. The attorney for the plain- 14 tiff shall not be liable to the sheriff for such fees. The surety on the 15 undertaking shall not be discharged except upon notice to the sheriff. 16 (e) Damages. [The] Except where an order of attachment is sought on 17 the ground specified in subdivision six of section 6201, the plaintiff 18 shall be liable to the defendant for all costs and damages, including 19 reasonable attorney's fees, which may be sustained by reason of the 20 attachment if the defendant recovers judgment, or if it is finally 21 decided that the plaintiff was not entitled to an attachment of the 22 defendant's property. Plaintiff's liability shall not be limited by the 23 amount of the undertaking. 24 § 32. Paragraph (b) of section 624 of the business corporation law, as 25 amended by chapter 449 of the laws of 1997, is amended to read as 26 follows: 27 (b) Any person who shall have been a shareholder of record of a corpo- 28 ration, or who is or shall have been a laborer, servant or employee, 29 upon at least five days' written demand shall have the right to examine 30 in person or by agent or attorney, during usual business hours, its 31 minutes of the proceedings of its shareholders and record of sharehold- 32 ers and to make extracts therefrom for any purpose reasonably related to 33 such person's interest as a shareholder, laborer, servant or employee, 34 provided the purpose reasonably related to a person's interest as a 35 laborer, servant or employee shall be to obtain the names, addresses, 36 and value of shareholders' interests in the corporation. Holders of 37 voting trust certificates representing shares of the corporation shall 38 be regarded as shareholders for the purpose of this section. Any such 39 agent or attorney shall be authorized in a writing that satisfies the 40 requirements of a writing under paragraph (b) of section 609 (Proxies). 41 A corporation requested to provide information pursuant to this para- 42 graph shall make available such information in written form and in any 43 other format in which such information is maintained by the corporation 44 and shall not be required to provide such information in any other 45 format. If a request made pursuant to this paragraph includes a request 46 to furnish information regarding beneficial owners, the corporation 47 shall make available such information in its possession regarding bene- 48 ficial owners as is provided to the corporation by a registered broker 49 or dealer or a bank, association or other entity that exercises fiduci- 50 ary powers in connection with the forwarding of information to such 51 owners. The corporation shall not be required to obtain information 52 about beneficial owners not in its possession. 53 § 33. Section 630 of the business corporation law, paragraph (a) as 54 amended by chapter 5 of the laws of 2016, paragraph (c) as amended by 55 chapter 746 of the laws of 1963, is amended to read as follows:S. 2844--A 18 1 § 630. Liability of shareholders for wages due to laborers, servants or 2 employees. 3 (a) The ten largest shareholders, as determined by the fair value of 4 their beneficial interest as of the beginning of the period during which 5 the unpaid services referred to in this section are performed, of every 6 domestic corporation or of any foreign corporation, when the unpaid 7 services were performed in the state, no shares of which are listed on a 8 national securities exchange or regularly quoted in an over-the-counter 9 market by one or more members of a national or an affiliated securities 10 association, shall jointly and severally be personally liable for all 11 debts, wages or salaries due and owing to any of its laborers, servants 12 or employees other than contractors, for services performed by them for 13 such corporation. [Before such laborer, servant or employee shall charge14such shareholder for such services, he shall give notice in writing to15such shareholder that he intends to hold him liable under this section.16Such notice shall be given within one hundred and eighty days after17termination of such services, except that if, within such period, the18laborer, servant or employee demands an examination of the record of19shareholders under paragraph (b) of section 624 (Books and records;20right of inspection, prima facie evidence) of this article, such notice21may be given within sixty days after he has been given the opportunity22to examine the record of shareholders. An action to enforce such liabil-23ity shall be commenced within ninety days after the return of an24execution unsatisfied against the corporation upon a judgment recovered25against it for such services.] The provisions of this paragraph shall 26 not apply to an investment company registered as such under an act of 27 congress entitled "Investment Company Act of 1940." 28 (b) For the purposes of this section, wages or salaries shall mean all 29 compensation and benefits payable by an employer to or for the account 30 of the employee for personal services rendered by such employee includ- 31 ing any concomitant liquidated damages, penalties, interest, attorney's 32 fees or costs. These shall specifically include but not be limited to 33 salaries, overtime, vacation, holiday and severance pay; employer 34 contributions to or payments of insurance or welfare benefits; employer 35 contributions to pension or annuity funds; and any other moneys properly 36 due or payable for services rendered by such employee. 37 (c) A shareholder who has paid more than his pro rata share under this 38 section shall be entitled to contribution pro rata from the other share- 39 holders liable under this section with respect to the excess so paid, 40 over and above his pro rata share, and may sue them jointly or severally 41 or any number of them to recover the amount due from them. Such recov- 42 ery may be had in a separate action. As used in this paragraph, "pro 43 rata" means in proportion to beneficial share interest. Before a share- 44 holder may claim contribution from other shareholders under this para- 45 graph, he shall[, unless they have been given notice by a laborer, serv-46ant or employee under paragraph (a),] give them notice in writing that 47 he intends to hold them so liable to him. Such notice shall be given by 48 him within twenty days after the date that [notice was given to him by] 49 he became aware that a laborer, servant or employee may seek to hold him 50 liable under paragraph (a). 51 § 34. Subdivision (c) of section 609 of the limited liability company 52 law, as added by chapter 537 of the laws of 2014, is amended to read as 53 follows: 54 (c) Notwithstanding the provisions of subdivisions (a) and (b) of this 55 section, the ten members with the largest percentage ownership interest, 56 as determined as of the beginning of the period during which the unpaidS. 2844--A 19 1 services referred to in this section are performed, of every limited 2 liability company, shall jointly and severally be personally liable for 3 all debts, wages or salaries due and owing to any of its laborers, serv- 4 ants or employees, for services performed by them for such limited 5 liability company. [Before such laborer, servant or employee shall6charge such member for such services, he or she shall give notice in7writing to such member that he or she intends to hold such member liable8under this section. Such notice shall be given within one hundred eighty9days after termination of such services. An action to enforce such10liability shall be commenced within ninety days after the return of an11execution unsatisfied against the limited liability company upon a judg-12ment recovered against it for such services.] A member who has paid more 13 than his or her pro rata share under this section shall be entitled to 14 contribution pro rata from the other members liable under this section 15 with respect to the excess so paid, over and above his or her pro rata 16 share, and may sue them jointly or severally or any number of them to 17 recover the amount due from them. Such recovery may be had in a separate 18 action. As used in this subdivision, "pro rata" means in proportion to 19 percentage ownership interest. Before a member may claim contribution 20 from other members under this section, he or she shall give them notice 21 in writing that he or she intends to hold them so liable to him or her. 22 § 35. Section 1102 of the limited liability company law is amended by 23 adding a new subdivision (e) to read as follows: 24 (e) Any person who is or shall have been a laborer, servant or employ- 25 ee of a limited liability company, upon at least five days' written 26 demand shall have the right to examine in person or by agent or attor- 27 ney, during usual business hours, records described in paragraph two of 28 subdivision (a) of this section throughout the period of time during 29 which such laborer, servant or employee provided services to such compa- 30 ny. A company requested to provide information pursuant to this para- 31 graph shall make available such records in written form and in any other 32 format in which such information is maintained by the company and shall 33 not be required to provide such information in any other format. Upon 34 refusal by the company or by an officer or agent of the company to 35 permit an inspection of the records described in this paragraph, the 36 person making the demand for inspection may apply to the supreme court 37 in the judicial district where the office of the company is located, 38 upon such notice as the court may direct, for an order directing the 39 company, its members or managers to show cause why an order should not 40 be granted permitting such inspection by the applicant. Upon the return 41 day of the order to show cause, the court shall hear the parties summar- 42 ily, by affidavit or otherwise, and if it appears that the applicant is 43 qualified and entitled to such inspection, the court shall grant an 44 order compelling such inspection and awarding such further relief as to 45 the court may seem just and proper. If the applicant is found to be 46 qualified and entitled to such inspection, the company shall pay all 47 reasonable attorney's fees and costs of said applicant related to the 48 demand for inspection of the records. 49 § 36. This act shall take effect on the thirtieth day after it shall 50 have become a law. The procedures and rights created in this act may be 51 used by employees, laborers or servants in connection with claims for 52 liabilities that arose prior to the effective date.
