Bill Text: NY S02844 | 2019-2020 | General Assembly | Amended
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--B 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 -- again 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, except that the 11 term "employer" shall not include a governmental agency. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00946-05-9S. 2844--B 2 1 23. Wage claim. The term "wage claim", when used in this chapter, 2 means a claim that an employee has suffered a violation of sections one 3 hundred seventy, one hundred ninety-three, one hundred ninety-six-d, six 4 hundred fifty-two or six hundred seventy-three of the labor law or the 5 related regulations and wage orders promulgated by the commissioner, a 6 claim for wages due to an employee pursuant to an employment contract 7 that were unpaid in violation of that contract, or a claim that an 8 employee has suffered a violation of 29 U.S.C. § 206 or 207. 9 § 2. Section 3 of the lien law, as amended by chapter 137 of the laws 10 of 1985, is amended to read as follows: 11 § 3. Mechanic's lien and employee's lien on [real] property. 1. 12 Mechanic's lien. A contractor, subcontractor, laborer, materialman, 13 landscape gardener, nurseryman or person or corporation selling fruit or 14 ornamental trees, roses, shrubbery, vines and small fruits, who performs 15 labor or furnishes materials for the improvement of real property with 16 the consent or at the request of the owner thereof, or of his agent, 17 contractor or subcontractor, and any trust fund to which benefits and 18 wage supplements are due or payable for the benefit of such laborers, 19 shall have a lien for the principal and interest, of the value, or the 20 agreed price, of such labor, including benefits and wage supplements due 21 or payable for the benefit of any laborer, or materials upon the real 22 property improved or to be improved and upon such improvement, from the 23 time of filing a notice of such lien as prescribed in this chapter. 24 Where the contract for an improvement is made with a husband or wife and 25 the property belongs to the other or both, the husband or wife contract- 26 ing shall also be presumed to be the agent of the other, unless such 27 other having knowledge of the improvement shall, within ten days after 28 learning of the contract give the contractor written notice of his or 29 her refusal to consent to the improvement. Within the meaning of the 30 provisions of this chapter, materials actually manufactured for but not 31 delivered to the real property, shall also be deemed to be materials 32 furnished. 33 2. Employee's lien. An employee who has a wage claim as that term is 34 defined in subdivision twenty-three of section two of this chapter shall 35 have a lien on his or her employer's interest in property for the value 36 of that employee's wage claim arising out of the employment, including 37 liquidated damages pursuant to subdivision one-a of section one hundred 38 ninety-eight, section six hundred sixty-three or section six hundred 39 eighty-one of the labor law, or 29 U.S.C. § 216 (b), from the time of 40 filing a notice of such lien as prescribed in this chapter. An employ- 41 ee's lien based on a wage claim may be had against the employer's inter- 42 est in real property and against the employer's interest in personal 43 property that can be sufficiently described within the meaning of 44 section 9-108 of the uniform commercial code, except that an employee's 45 lien shall not extend to deposit accounts or goods as those terms are 46 defined in section 9-102 of the uniform commercial code. The department 47 of labor and the attorney general may obtain an employee's lien for the 48 value of wage claims of the employees who are the subject of their 49 investigations, court actions or administrative agency actions. 50 3. As used in this article and unless otherwise specified, a lien 51 shall mean an employee's lien or a mechanic's lien. 52 § 3. Subdivisions 1 and 2 of section 4 of the lien law, subdivision 1 53 as amended by chapter 515 of the laws of 1929 and subdivision 2 as added 54 by chapter 704 of the laws of 1985, are amended to read as follows: 55 (1) [Such] A mechanic's or employee's lien and employee's lien against 56 real property shall extend to the owner's right, title or interest inS. 2844--B 3 1 the real property and improvements, existing at the time of filing the 2 notice of lien, or thereafter acquired, except as hereinafter in this 3 article provided. If an owner assigns his interest in such real property 4 by a general assignment for the benefit of creditors, within thirty days 5 prior to such filing, the lien shall extend to the interest thus 6 assigned. If any part of the real property subjected to such lien be 7 removed by the owner or by any other person, at any time before the 8 discharge thereof, such removal shall not affect the rights of the 9 lienor, either in respect to the remaining real property, or the part so 10 removed. If labor is performed for, or materials furnished to, a 11 contractor or subcontractor for an improvement, the mechanic's lien 12 shall not be for a sum greater than the sum earned and unpaid on the 13 contract at the time of filing the notice of lien, and any sum subse- 14 quently earned thereon. In no case shall the owner be liable to pay by 15 reason of all mechanic's liens created pursuant to this article a sum 16 greater than the value or agreed price of the labor and materials 17 remaining unpaid, at the time of filing notices of such liens, except as 18 hereinafter provided. 19 (2) [Such] A mechanic's or employee's lien shall not extend to the 20 owner's right, title or interest in real property and improvements, 21 existing at the time of filing the notice of lien if such lien arises 22 from the failure of a lessee of the right to explore, develop or produce 23 natural gas or oil, to pay for, compensate or render value for improve- 24 ments made with the consent or at the request of such lessee by a 25 contractor, subcontractor, materialman, equipment operator or owner, 26 landscaper, nurseryman, or person or corporation who performs labor or 27 furnishes materials for the exploration, development, or production of 28 oil or natural gas or otherwise improves such leased property. Such 29 mechanic's or employee's lien shall extend to the improvements made for 30 the exploration, development and production of oil and natural gas, and 31 the working interest held by a lessee of the right to explore, develop 32 or produce oil and natural gas. 33 § 4. The opening paragraph of section 4-a of the lien law, as amended 34 by chapter 696 of the laws of 1959, is amended to read as follows: 35 The proceeds of any insurance which by the terms of the policy are 36 payable to the owner of real property improved, and actually received or 37 to be received by him because of the destruction or removal by fire or 38 other casualty of an improvement on which lienors have performed labor 39 or services or for which they have furnished materials, or upon which an 40 employee has established an employee's lien, shall after the owner has 41 been reimbursed therefrom for premiums paid by him, if any, for such 42 insurance, be subject to liens provided by this act to the same extent 43 and in the same order of priority as the real property would have been 44 had such improvement not been so destroyed or removed. 45 § 5. Subdivisions 1, 2 and 5 of section 9 of the lien law, as amended 46 by chapter 515 of the laws of 1929, are amended to read as follows: 47 1. The name of the lienor, and either the residence of the lienor or 48 the name and business address of the lienor's attorney, if any; and if 49 the lienor is a partnership or a corporation, the business address of 50 such firm, or corporation, the names of partners and principal place of 51 business, and if a foreign corporation, its principal place of business 52 within the state. 53 2. The name of the owner of the [real] property against whose interest 54 therein a lien is claimed, and the interest of the owner as far as known 55 to the lienor.S. 2844--B 4 1 5. The amount unpaid to the lienor for such labor or materials, or the 2 amount of the wage claim if a wage claim is the basis for establishment 3 of the lien, the items of the wage claim and the value thereof which 4 make up the amount for which the lienor claims a lien. 5 § 6. Subdivision 1 of section 10 of the lien law, as amended by chap- 6 ter 367 of the laws of 2011, is amended to read as follows: 7 1. (a) Notice of mechanic's lien may be filed at any time during the 8 progress of the work and the furnishing of the materials, or, within 9 eight months after the completion of the contract, or the final perform- 10 ance of the work, or the final furnishing of the materials, dating from 11 the last item of work performed or materials furnished; provided, howev- 12 er, that where the improvement is related to real property improved or 13 to be improved with a single family dwelling, the notice of mechanic's 14 lien may be filed at any time during the progress of the work and the 15 furnishing of the materials, or, within four months after the completion 16 of the contract, or the final performance of the work, or the final 17 furnishing of the materials, dating from the last item of work performed 18 or materials furnished; and provided further where the notice of mechan- 19 ic's lien is for retainage, the notice of mechanic's lien may be filed 20 within ninety days after the date the retainage was due to be released; 21 except that in the case of a mechanic's lien by a real estate broker, 22 the notice of mechanic's lien may be filed only after the performance of 23 the brokerage services and execution of lease by both lessor and lessee 24 and only if a copy of the alleged written agreement of employment or 25 compensation is annexed to the notice of lien, provided that where the 26 payment pursuant to the written agreement of employment or compensation 27 is to be made in installments, then a notice of lien may be filed within 28 eight months after the final payment is due, but in no event later than 29 a date five years after the first payment was made. For purposes of this 30 section, the term "single family dwelling" shall not include a dwelling 31 unit which is a part of a subdivision that has been filed with a munici- 32 pality in which the subdivision is located when at the time the lien is 33 filed, such property in the subdivision is owned by the developer for 34 purposes other than his personal residence. For purposes of this 35 section, "developer" shall mean and include any private individual, 36 partnership, trust or corporation which improves two or more parcels of 37 real property with single family dwellings pursuant to a common scheme 38 or plan. [The] 39 (b) Notice of employee's lien may be filed at any time not later than 40 three years following the end of the employment giving rise to the wage 41 claim. 42 (c) A notice of lien, other than for a lien on personal property, must 43 be filed in the clerk's office of the county where the property is situ- 44 ated. If such property is situated in two or more counties, the notice 45 of lien shall be filed in the office of the clerk of each of such coun- 46 ties. The county clerk of each county shall provide and keep a book to 47 be called the "lien docket," which shall be suitably ruled in columns 48 headed "owners," "lienors," "lienor's attorney," "property," "amount," 49 "time of filing," "proceedings had," in each of which he shall enter the 50 particulars of the notice, properly belonging therein. The date, hour 51 and minute of the filing of each notice of lien shall be entered in the 52 proper column. Except where the county clerk maintains a block index, 53 the names of the owners shall be arranged in such book in alphabetical 54 order. The validity of the lien and the right to file a notice thereof 55 shall not be affected by the death of the owner before notice of the 56 lien is filed. A notice of employee's lien on personal property must beS. 2844--B 5 1 filed, together with a financing statement, in the filing office as set 2 forth in section 9-501 of the uniform commercial code. 3 § 7. Section 11 of the lien law, as amended by chapter 147 of the laws 4 of 1996, is amended to read as follows: 5 § 11. Service of copy of notice of lien. 1. Within five days before 6 or thirty days after filing the notice of a mechanic's lien, the lienor 7 shall serve a copy of such notice upon the owner, if a natural person, 8 (a) by delivering the same to him personally, or if the owner cannot be 9 found, to his agent or attorney, or (b) by leaving it at his last known 10 place of residence in the city or town in which the real property or 11 some part thereof is situated, with a person of suitable age and 12 discretion, or (c) by registered or certified mail addressed to his last 13 known place of residence, or (d) if such owner has no such residence in 14 such city or town, or cannot be found, and he has no agent or attorney, 15 by affixing a copy thereof conspicuously on such property, between the 16 hours of nine o'clock in the forenoon and four o'clock in the afternoon; 17 if the owner be a corporation, said service shall be made (i) by deliv- 18 ering such copy to and leaving the same with the president, vice-presi- 19 dent, secretary or clerk to the corporation, the cashier, treasurer or a 20 director or managing agent thereof, personally, within the state, or 21 (ii) if such officer cannot be found within the state by affixing a copy 22 thereof conspicuously on such property between the hours of nine o'clock 23 in the forenoon and four o'clock in the afternoon, or (iii) by regis- 24 tered or certified mail addressed to its last known place of business. 25 Failure to file proof of such a service with the county clerk within 26 thirty-five days after the notice of lien is filed shall terminate the 27 notice as a lien. Until service of the notice has been made, as above 28 provided, an owner, without knowledge of the lien, shall be protected in 29 any payment made in good faith to any contractor or other person claim- 30 ing a lien. 31 2. Within five days before or thirty days after filing the notice of 32 an employee's lien, the lienor shall serve a copy of such notice upon 33 the employer, if a natural person, (a) by delivering the same to him 34 personally, or if the employer cannot be found, to his agent or attor- 35 ney, or (b) by leaving it as his last known place of residence or busi- 36 ness, with a person of suitable age and discretion, or (c) by registered 37 or certified mail addressed to his last known place of residence or 38 business, or (d) if such employer owns real property, by affixing a copy 39 thereof conspicuously on such property, between the hours of nine 40 o'clock in the forenoon and four o'clock in the afternoon. The lienor 41 also shall, within thirty days after filing the notice of employee's 42 lien, affix a copy thereof conspicuously on the real property identified 43 in the notice of employee's lien, between the hours of nine o'clock in 44 the forenoon and four o'clock in the afternoon. If the employer be a 45 corporation, said service shall be made (i) by delivering such copy to 46 and leaving the same with the president, vice-president, secretary or 47 clerk to the corporation, the cashier, treasurer or a director or manag- 48 ing agent thereof, personally, within the state, or (ii) if such officer 49 cannot be found within the state by affixing a copy thereof conspicuous- 50 ly on such property between the hours of nine o'clock in the forenoon 51 and four o'clock in the afternoon, or (iii) by registered or certified 52 mail addressed to its last known place of business, or (iv) by delivery 53 to the secretary of the department of state in the same manner as 54 required by subparagraph one of paragraph (b) of section three hundred 55 six of the business corporation law. Failure to file proof of such a 56 service with the county clerk within thirty-five days after the noticeS. 2844--B 6 1 of lien is filed shall terminate the notice as a lien. Until service of 2 the notice has been made, as above provided, an owner, without knowledge 3 of the lien, shall be protected in any payment made in good faith to any 4 other person claiming a lien. 5 § 8. Section 11-b of the lien law, as amended by chapter 147 of the 6 laws of 1996, is amended to read as follows: 7 § 11-b. Copy of notice of mechanic's lien to a contractor or subcon- 8 tractor. Within five days before or thirty days after filing a notice 9 of mechanic's lien in accordance with section ten of this chapter or the 10 filing of an amendment of notice of mechanic's lien in accordance with 11 section twelve-a of this [chapter] article the lienor shall serve a copy 12 of such notice or amendment by certified mail on the contractor, subcon- 13 tractor, assignee or legal representative for whom he was employed or to 14 whom he furnished materials or if the lienor is a contractor or subcon- 15 tractor to the person, firm or corporation with whom the contract was 16 made. A lienor having a direct contractual relationship with a subcon- 17 tractor or a sub-subcontractor but not with a contractor shall also 18 serve a copy of such notice or amendment by certified mail to the 19 contractor. Failure to file proof of such a service with the county 20 clerk within thirty-five days after the notice of lien is filed shall 21 terminate the notice as a lien. Any lienor, or a person acting on behalf 22 of a lienor, who fails to serve a copy of the notice of mechanic's lien 23 as required by this section shall be liable for reasonable attorney's 24 fees, costs and expenses, as determined by the court, incurred in 25 obtaining such copy. 26 § 9. Subdivision 1 of section 12-a of the lien law, as amended by 27 chapter 1048 of the laws of 1971, is amended to read as follows: 28 1. Within sixty days after the original filing, a lienor may amend his 29 lien upon twenty days notice to existing lienors, mortgagees and the 30 owner, provided that no action or proceeding to enforce or cancel the 31 mechanics' lien or employee's lien has been brought in the interim, 32 where the purpose of the amendment is to reduce the amount of the lien, 33 except the question of wilful exaggeration shall survive such amendment. 34 § 10. Subdivision 1 of section 13 of the lien law, as amended by chap- 35 ter 878 of the laws of 1947, is amended to read as follows: 36 (1) [A] An employee's lien, or a lien for materials furnished or labor 37 performed in the improvement of real property, shall have priority over 38 a conveyance, mortgage, judgment or other claim against such property 39 not recorded, docketed or filed at the time of the filing of the notice 40 of such lien, except as hereinafter in this chapter provided; over 41 advances made upon any mortgage or other encumbrance thereon after such 42 filing, except as hereinafter in this article provided; and over the 43 claim of a creditor who has not furnished materials or performed labor 44 upon such property, if such property has been assigned by the owner by a 45 general assignment for the benefit of creditors, within thirty days 46 before the filing of either of such notices; and also over an attachment 47 hereafter issued or a money judgment hereafter recovered upon a claim, 48 which, in whole or in part, was not for materials furnished, labor 49 performed or moneys advanced for the improvement of such real property; 50 and over any claim or lien acquired in any proceedings upon such judg- 51 ment. Such liens shall also have priority over advances made upon a 52 contract by an owner for an improvement of real property which contains 53 an option to the contractor, his successor or assigns to purchase the 54 property, if such advances were made after the time when the labor began 55 or the first item of material was furnished, as stated in the notice of 56 lien. If several buildings are demolished, erected, altered or repaired,S. 2844--B 7 1 or several pieces or parcels of real property are improved, under one 2 contract, and there are conflicting liens thereon, each lienor shall 3 have priority upon the particular part of the real property or upon the 4 particular building or premises where his labor is performed or his 5 materials are used. Persons shall have no priority on account of the 6 time of filing their respective notices of liens, but all liens shall be 7 on a parity except as hereinafter in section fifty-six of this chapter 8 provided; and except that in all cases laborers for daily or weekly 9 wages with a mechanic's lien, and employees with an employee's lien, 10 shall have preference over all other claimants under this article. 11 § 11. Section 17 of the lien law, as amended by chapter 324 of the 12 laws of 2000, is amended to read as follows: 13 § 17. Duration of lien. 1. (a) No mechanic's lien specified in this 14 article shall be a lien for a longer period than one year after the 15 notice of lien has been filed, unless within that time an action is 16 commenced to foreclose the lien, and a notice of the pendency of such 17 action, whether in a court of record or in a court not of record, is 18 filed with the county clerk of the county in which the notice of lien is 19 filed, containing the names of the parties to the action, the object of 20 the action, a brief description of the real property affected thereby, 21 and the time of filing the notice of lien; or unless an extension to 22 such lien, except for a lien on real property improved or to be improved 23 with a single family dwelling, is filed with the county clerk of the 24 county in which the notice of lien is filed within one year from the 25 filing of the original notice of lien, continuing such lien and such 26 lien shall be redocketed as of the date of filing such extension. Such 27 extension shall contain the names of the lienor and the owner of the 28 real property against whose interest therein such lien is claimed, a 29 brief description of the real property affected by such lien, the amount 30 of such lien, and the date of filing the notice of lien. No lien shall 31 be continued by such extension for more than one year from the filing 32 thereof. In the event an action is not commenced to foreclose the lien 33 within such extended period, such lien shall be extinguished unless an 34 order be granted by a court of record or a judge or justice thereof, 35 continuing such lien, and such lien shall be redocketed as of the date 36 of granting such order and a statement made that such lien is continued 37 by virtue of such order. A lien on real property improved or to be 38 improved with a single family dwelling may only be extended by an order 39 of a court of record, or a judge or justice thereof. No lien shall be 40 continued by court order for more than one year from the granting there- 41 of, but a new order and entry may be made in each of two successive 42 years. If a lienor is made a party defendant in an action to enforce 43 another lien, and the plaintiff or such defendant has filed a notice of 44 the pendency of the action within the time prescribed in this section, 45 the lien of such defendant is thereby continued. Such action shall be 46 deemed an action to enforce the lien of such defendant lienor. The fail- 47 ure to file a notice of pendency of action shall not abate the action as 48 to any person liable for the payment of the debt specified in the notice 49 of lien, and the action may be prosecuted to judgment against such 50 person. The provisions of this section in regard to continuing liens 51 shall apply to liens discharged by deposit or by order on the filing of 52 an undertaking. Where a lien is discharged by deposit or by order, a 53 notice of pendency of action shall not be filed. 54 (b) A lien, the duration of which has been extended by the filing of a 55 notice of the pendency of an action as above provided, shall neverthe- 56 less terminate as a lien after such notice has been canceled as providedS. 2844--B 8 1 in section sixty-five hundred fourteen of the civil practice law and 2 rules or has ceased to be effective as constructive notice as provided 3 in section sixty-five hundred thirteen of the civil practice law and 4 rules. 5 2. (a) No employee's lien on real property shall be a lien for a long- 6 er period than one year after the notice of lien has been filed, unless 7 an extension to such lien is filed with the county clerk of the county 8 in which the notice of lien is filed within one year from the filing of 9 the original notice of lien, continuing such lien and such lien shall be 10 redocketed as of the date of filing such extension. Such extension shall 11 contain the names of the lienor and the owner of the real property 12 against whose interest therein such lien is claimed, a brief description 13 of the property affected by such lien, the amount of such lien, and the 14 date of filing the notice of lien. No lien shall be continued by such 15 extension for more than one year from the filing thereof. In the event 16 an action is not commenced to obtain judgment on the wage claim or to 17 foreclose the lien within such extended period, such lien shall be auto- 18 matically extinguished unless an order be granted by a court of record 19 or a judge or justice thereof, continuing such lien, and such lien shall 20 be redocketed as of the date of granting such order and a statement made 21 that such lien is continued by virtue of such order. 22 (b) No employee's lien on personal property shall be a lien for a 23 longer period than one year after the financing statement has been 24 recorded, unless an extension to such lien, is filed with the filing 25 office in which the financing statement is required to be filed pursuant 26 to section 9-501 of the uniform commercial code within one year from the 27 filing of the original financing statement, continuing such lien. Such 28 extension shall contain the names of the lienor and the owner of the 29 property against whose interest therein such lien is claimed, a brief 30 description of the prior financing statement to be extended, and the 31 date of filing the prior financing statement. No lien shall be contin- 32 ued by such extension for more than one year from the filing thereof. In 33 the event an action is not commenced to obtain judgment on the wage 34 claim or to foreclose the lien within such extended period, such lien 35 shall be automatically extinguished unless an order be granted by a 36 court of record or a judge or justice thereof, continuing such lien, and 37 such lien shall be refiled as of the date of granting such order and a 38 statement made that such lien is continued by virtue of such order. 39 (c) If a lienor is made a party defendant in an action to enforce 40 another lien, and the plaintiff or such defendant has filed a notice of 41 the pendency of the action within the time prescribed in this section, 42 the lien of such defendant is thereby continued. Such action shall be 43 deemed an action to enforce the lien of such defendant lienor. The fail- 44 ure to file a notice of pendency of action shall not abate the action as 45 to any person liable for the payment of the debt specified in the notice 46 of lien, and the action may be prosecuted to judgment against such 47 person. The provisions of this section in regard to continuing liens 48 shall apply to liens discharged by deposit or by order on the filing of 49 an undertaking. Where a lien is discharged by deposit or by order, a 50 notice of pendency of action shall not be filed. 51 (d) Notwithstanding the foregoing, if a lienor commences a foreclosure 52 action or an action to obtain a judgment on the wage claim within one 53 year from the filing of the notice of lien on real property or the 54 recording of the financing statement creating lien on personal property, 55 the lien shall be extended during the pendency of the action and for one 56 hundred twenty days following the entry of final judgment in suchS. 2844--B 9 1 action, unless the action results in a final judgment or administrative 2 order in the lienor's favor on the wage claims and the lienor commences 3 a foreclosure action, in which instance the lien shall be valid during 4 the pendency of the foreclosure action, provided, that the lien will be 5 automatically extinguished if, after a dismissal with prejudice of the 6 wage claims on which it is based, the lienor fails to file a notice of 7 appeal within the prescribed period to file a notice of appeal. If a 8 lien is extended due to the pendency of a foreclosure action or an 9 action to obtain a judgment on the wage claim, the lienor shall file a 10 notice of such pendency and extension with the county clerk of the coun- 11 ty in which the notice of lien is filed, containing the names of the 12 parties to the action, the object of the action, a brief description of 13 the property affected thereby, and the time of filing the notice of 14 lien, or in the case of a lien on personal property shall file such 15 notice with the office authorized to accept financing statements pursu- 16 ant to section 9-501 of the uniform commercial code. For purposes of 17 this section, an action to obtain judgment on a wage claim includes an 18 action brought in any court of competent jurisdiction, the submission of 19 a complaint to the department of labor or the submission of a claim to 20 arbitration pursuant to an arbitration agreement. An action also 21 includes an investigation of wage claims by the commissioner of labor or 22 the attorney general of the state of New York, regardless of whether 23 such investigation was initiated by a complaint. 24 (e) A lien, the duration of which has been extended by the filing of a 25 notice of the pendency of an action as above provided, shall neverthe- 26 less terminate as a lien after such notice has been canceled as provided 27 in section sixty-five hundred fourteen of the civil practice law and 28 rules or has ceased to be effective as constructive notice as provided 29 in section sixty-five hundred thirteen of the civil practice law and 30 rules. 31 § 12. Subdivisions 2 and 4 of section 19 of the lien law, subdivision 32 2 as amended by chapter 310 of the laws of 1962, subdivision 4 as added 33 by chapter 582 of the laws of 2002 and paragraph a of subdivision 4 as 34 further amended by section 104 of part A of chapter 62 of the laws of 35 2011, are amended to read as follows: 36 (2) By failure to begin an action to foreclose such lien or to secure 37 an order continuing it, within one year from the time of filing the 38 notice of lien, unless (i) an action be begun within the same period to 39 foreclose a mortgage or another mechanic's lien upon the same property 40 or any part thereof and a notice of pendency of such action is filed 41 according to law, or (ii) an action is commenced to obtain a judgment on 42 a wage claim pursuant to subdivision two of section seventeen of this 43 article, but a lien, the duration of which has been extended by the 44 filing of a notice of the pendency of an action as herein provided, 45 shall nevertheless terminate as a lien after such notice has been 46 cancelled or has ceased to be effective as constructive notice. 47 (4) Either before or after the beginning of an action by the employer, 48 owner or contractor executing a bond or undertaking in an amount equal 49 to one hundred ten percent of such lien conditioned for the payment of 50 any judgment which may be rendered against the property or employer for 51 the enforcement of the lien: 52 a. The execution of any such bond or undertaking by any fidelity or 53 surety company authorized by the laws of this state to transact busi- 54 ness, shall be sufficient; and where a certificate of qualification has 55 been issued by the superintendent of financial services under the 56 provisions of section one thousand one hundred eleven of the insuranceS. 2844--B 10 1 law, and has not been revoked, no justification or notice thereof shall 2 be necessary. Any such company may execute any such bond or undertaking 3 as surety by the hand of its officers, or attorney, duly authorized 4 thereto by resolution of its board of directors, a certified copy of 5 which resolution, under the seal of said company, shall be filed with 6 each bond or undertaking. Any such bond or undertaking shall be filed 7 with the clerk of the county in which the notice of lien is filed, and a 8 copy shall be served upon the adverse party. The undertaking is effec- 9 tive when so served and filed. If a certificate of qualification issued 10 pursuant to subsections (b), (c) and (d) of section one thousand one 11 hundred eleven of the insurance law is not filed with the undertaking, a 12 party may except, to the sufficiency of a surety and by a written notice 13 of exception served upon the adverse party within ten days after 14 receipt, a copy of the undertaking. Exceptions deemed by the court to 15 have been taken unnecessarily, or for vexation or delay, may, upon 16 notice, be set aside, with costs. Where no exception to sureties is 17 taken within ten days or where exceptions taken are set aside, the 18 undertaking shall be allowed. 19 b. In the case of bonds or undertakings not executed pursuant to para- 20 graph a of this subdivision, the employer, owner or contractor shall 21 execute an undertaking with two or more sufficient sureties, who shall 22 be free holders, to the clerk of the county where the premises are situ- 23 ated. The sureties must together justify in at least double the sum 24 named in the undertaking. A copy of the undertaking, with notice that 25 the sureties will justify before the court, or a judge or justice there- 26 of, at the time and place therein mentioned, must be served upon the 27 lienor or his attorney, not less than five days before such time. Upon 28 the approval of the undertaking by the court, judge or justice an order 29 shall be made by such court, judge or justice discharging such lien. 30 c. If the lienor cannot be found, or does not appear by attorney, 31 service under this subsection may be made by leaving a copy of such 32 undertaking and notice at the lienor's place of residence, or if a 33 corporation at its principal place of business within the state as stat- 34 ed in the notice of lien, with a person of suitable age and discretion 35 therein, or if the house of his abode or its place of business is not 36 stated in said notice of lien and is not known, then in such manner as 37 the court may direct. The premises, if any, described in the notice of 38 lien as the lienor's residence or place of business shall be deemed to 39 be his said residence or its place of business for the purposes of said 40 service at the time thereof, unless it is shown affirmatively that the 41 person servicing the papers or directing the service had knowledge to 42 the contrary. Notwithstanding the other provisions of this subdivision 43 relating to service of notice, in any case where the mailing address of 44 the lienor is outside the state such service may be made by registered 45 or certified mail, return receipt requested, to such lienor at the mail- 46 ing address contained in the notice of lien. 47 d. Except as otherwise provided in this subdivision, the provisions of 48 article twenty-five of the civil practice law and rules regulating 49 undertakings is applicable to a bond or undertaking given for the 50 discharge of a lien on account of private improvements or of an employ- 51 ee's lien. 52 § 13. Section 24 of the lien law, as amended by chapter 515 of the 53 laws of 1929, is amended to read as follows: 54 § 24. Enforcement of [mechanic's] lien. (1) Real property. The 55 [mechanics'] liens on real property specified in this article may be 56 enforced against the property specified in the notice of lien and whichS. 2844--B 11 1 is subject thereto and against any person liable for the debt upon which 2 the lien is founded, as prescribed in article three of this chapter. 3 (2) Personal property. An employee's lien on personal property speci- 4 fied in this article may immediately be enforced against the property 5 through a foreclosure as prescribed in article nine of the uniform 6 commercial code, or upon judgment obtained by the employee, commissioner 7 of labor or attorney general of the state of New York, may be enforced 8 in any manner available to the judgment creditor pursuant to article 9 nine of the uniform commercial code or other applicable laws. 10 § 14. Section 26 of the lien law, as amended by chapter 373 of the 11 laws of 1977, is amended to read as follows: 12 § 26. Subordination of liens after agreement with owner. In case an 13 owner of real property shall execute to one or more persons, or a corpo- 14 ration, as trustee or trustees, a bond and mortgage or a note and mort- 15 gage affecting such property in whole or in part, or an assignment of 16 the moneys due or to become due under a contract for a building loan in 17 relation to such property, and in case such mortgage, if any, shall be 18 recorded in the office of the register of the county where such real 19 property is situated, or if such county has no register then in the 20 office of the clerk of such county, and in case such assignment, if any, 21 shall be filed in the office of the clerk of the county where such real 22 property is situated; and in case lienors having [mechanics'] liens 23 against said real property, notices of which have been filed up to and 24 not later than fifteen days after the recording of such mortgage or the 25 filing of such assignment, and which liens have not been discharged as 26 in this article provided, shall, to the extent of at least fifty-five 27 per centum of the aggregate amount for which such notices of liens have 28 been so filed, approve such bond and mortgage or such note and mortgage, 29 if any, and such assignment, if any, by an instrument or instruments in 30 writing, duly acknowledged and filed in the office of such county clerk, 31 then all mechanics' liens for labor performed or material furnished 32 prior to the recording of such mortgage or filing of such assignment, 33 whether notices thereof have been theretofore or are thereafter filed 34 and which have not been discharged as in this article provided, shall be 35 subordinate to the lien of such trust bond and mortgage or such trust 36 note and mortgage to the extent of the aggregate amount of all certif- 37 icates of interest therein issued by such trustee or trustees, or their 38 successors, for moneys loaned, materials furnished, labor performed and 39 any other indebtedness incurred after said trust mortgage shall have 40 been recorded, and for expenses in connection with said trust mortgage, 41 and shall also be subordinate to the lien of the bond and mortgage or 42 note and mortgage, given to secure the amount agreed to be advanced 43 under such contract for a building loan to the extent of the amount 44 which shall be advanced by the holder of such bond and mortgage or such 45 note and mortgage to the trustee or trustees, or their successors, under 46 such assignment. The provisions of this section shall apply to all bonds 47 and mortgages and notes and mortgages and all assignments of moneys due, 48 or to become due under building loan contracts executed by such owner, 49 in like manner, and recorded or filed, from time to time as hereinbefore 50 provided. In case of an assignment to trustees under the provisions of 51 this section, the trustees and their successors shall be the agents of 52 the assignor to receive and receipt for any and all sums advanced by the 53 holder of the building loan bond and mortgage or the building loan note 54 and mortgage under the building loan contract and such assignment. No 55 lienor shall have any priority over the bond and mortgage or note and 56 mortgage given to secure the money agreed to be advanced under a build-S. 2844--B 12 1 ing loan contract or over the advances made thereunder, by reason of any 2 act preceding the making and approval of such assignment. 3 § 15. Section 38 of the lien law, as amended by chapter 859 of the 4 laws of 1930, is amended to read as follows: 5 § 38. Itemized statement may be required of lienor. A lienor who has 6 filed a notice of mechanic's lien shall, on demand in writing, deliver 7 to the owner or contractor making such demand a statement in writing 8 which shall set forth the items of labor and/or material and the value 9 thereof which make up the amount for which he claims a lien, and which 10 shall also set forth the terms of the contract under which such items 11 were furnished. The statement shall be verified by the lienor or his 12 agent in the form required for the verification of notices in section 13 nine of this [chapter] article. If the lienor shall fail to comply with 14 such a demand within five days after the same shall have been made by 15 the owner or contractor, or if the lienor delivers an insufficient 16 statement, the person aggrieved may petition the supreme court of this 17 state or any justice thereof, or the county court of the county where 18 the premises are situated, or the county judge of such county for an 19 order directing the lienor within a time specified in the order to 20 deliver to the petitioner the statement required by this section. Two 21 days' notice in writing of such application shall be served upon the 22 lienor. Such service shall be made in the manner provided by law for the 23 personal service of a summons. The court or a justice or judge thereof 24 shall hear the parties and upon being satisfied that the lienor has 25 failed, neglected or refused to comply with the requirements of this 26 section shall have an appropriate order directing such compliance. In 27 case the lienor fails to comply with the order so made within the time 28 specified, then upon five days' notice to the lienor, served in the 29 manner provided by law for the personal service of a summons, the court 30 or a justice or judge thereof may make an order cancelling the lien. 31 § 16. Section 39 of the lien law, as added by chapter 859 of the laws 32 of 1930, is amended to read as follows: 33 § 39. Lien wilfully exaggerated is void. In any action or proceeding 34 to enforce a mechanic's lien upon a private or public improvement or an 35 employee's lien, or in which the validity of the lien is an issue, if 36 the court shall find that a lienor has wilfully exaggerated the amount 37 for which he claims a lien as stated in his notice of lien, his lien 38 shall be declared to be void and no recovery shall be had thereon. No 39 such lienor shall have a right to file any other or further lien for the 40 same claim. A second or subsequent lien filed in contravention of this 41 section may be vacated upon application to the court on two days' 42 notice. 43 § 17. Section 39-a of the lien law, as added by chapter 859 of the 44 laws of 1930, is amended to read as follows: 45 § 39-a. Liability of lienor where lien has been declared void on 46 account of wilful exaggeration. Where in any action or proceeding to 47 enforce a mechanic's lien upon a private or public improvement or an 48 employee's lien the court shall have declared said lien to be void on 49 account of wilful exaggeration the person filing such notice of lien 50 shall be liable in damages to the owner or contractor. The damages which 51 said owner or contractor shall be entitled to recover, shall include the 52 amount of any premium for a bond given to obtain the discharge of the 53 lien or the interest on any money deposited for the purpose of discharg- 54 ing the lien, reasonable attorney's fees for services in securing the 55 discharge of the lien, and, in an action or proceeding to enforce a 56 mechanic's lien, an amount equal to the difference by which the amountS. 2844--B 13 1 claimed to be due or to become due as stated in the notice of lien 2 exceeded the amount actually due or to become due thereon. 3 § 18. Section 40 of the lien law, as amended by chapter 515 of the 4 laws of 1929, is amended to read as follows: 5 § 40. Construction of article. This article is to be construed in 6 connection with article two of this chapter, and provides proceedings 7 for the enforcement of employee's liens on real property, as well as 8 liens for labor performed and materials furnished in the improvement of 9 real property, created by virtue of such article. 10 § 19. Section 41 of the lien law, as amended by chapter 807 of the 11 laws of 1952, is amended to read as follows: 12 § 41. Enforcement of mechanic's or employee's lien on real property. A 13 mechanic's lien or employee's lien on real property may be enforced 14 against such property, and against a person liable for the debt upon 15 which the lien is founded, by an action, by the lienor, his assignee or 16 legal representative, in the supreme court or in a county court other- 17 wise having jurisdiction, regardless of the amount of such debt, or in a 18 court which has jurisdiction in an action founded on a contract for a 19 sum of money equivalent to the amount of such debt. 20 § 20. Section 43 of the lien law, as amended by chapter 310 of the 21 laws of 1962, is amended to read as follows: 22 § 43. Action in a court of record; consolidation of actions. The 23 provisions of the real property actions and proceedings law relating to 24 actions for the foreclosure of a mortgage upon real property, and the 25 sale and the distribution of the proceeds thereof apply to actions in a 26 court of record, to enforce mechanics' liens and employees' liens on 27 real property, except as otherwise provided in this article. If actions 28 are brought by different lienors in a court of record, the court in 29 which the first action was brought, may, upon its own motion, or upon 30 the application of any party in any of such actions, consolidate all of 31 such actions. 32 § 21. Section 46 of the lien law, as amended by chapter 515 of the 33 laws of 1929, is amended to read as follows: 34 § 46. Action in a court not of record. If an action to enforce a 35 mechanic's lien or employee's lien against real property is brought in a 36 court not of record, it shall be commenced by the personal service upon 37 the owner of a summons and complaint verified in the same manner as a 38 complaint in an action in a court of record. The complaint must set 39 forth substantially the facts contained in the notice of lien, and the 40 substance of the agreement under which the labor was performed or the 41 materials were furnished, or if the lien is based upon a wage claim as 42 defined in section two of this chapter, the basis for such wage claim. 43 The form and contents of the summons shall be the same as provided by 44 law for the commencement of an action upon a contract in such court. The 45 summons must be returnable not less than twelve nor more than twenty 46 days after the date of the summons, or if service is made by publica- 47 tion, after the day of the last publication of the summons. Service 48 must be made at least eight days before the return day. 49 § 22. Section 50 of the lien law, as amended by chapter 515 of the 50 laws of 1929, is amended to read as follows: 51 § 50. Execution. Execution may be issued upon a judgment obtained in 52 an action to enforce a mechanic's lien or an employee's lien against 53 real property in a court not of record, which shall direct the officer 54 to sell the title and interest of the owner in the premises, upon which 55 the lien set forth in the complaint existed at the time of filing the 56 notice of lien.S. 2844--B 14 1 § 23. Section 53 of the lien law, as amended by chapter 515 of the 2 laws of 1929, is amended to read as follows: 3 § 53. Costs and disbursements. If an action is brought to enforce a 4 mechanic's lien or an employee's lien against real property in a court 5 of record, the costs and disbursements shall rest in the discretion of 6 the court, and may be awarded to the prevailing party. The judgment 7 rendered in such an action shall include the amount of such costs and 8 specify to whom and by whom the costs are to be paid. If such action is 9 brought in a court not of record, they shall be the same as allowed in 10 civil actions in such court. The expenses incurred in serving the 11 summons by publication may be added to the amount of costs now allowed 12 in such court. 13 § 24. Section 59 of the lien law, as amended by chapter 515 of the 14 laws of 1929, is amended to read as follows: 15 § 59. Vacating of a [mechanic's] lien; cancellation of bond; return of 16 deposit, by order of court. 1. A mechanic's lien notice of which has 17 been filed on real property or a bond given to discharge the same may be 18 vacated and cancelled or a deposit made to discharge a lien pursuant to 19 section twenty of this chapter may be returned, by an order of a court 20 of record. Before such order shall be granted, a notice shall be served 21 upon the lienor, either personally or by leaving it as his last known 22 place of residence, with a person of suitable age, with directions to 23 deliver it to the lienor. Such notice shall require the lienor to 24 commence an action to enforce the lien, within a time specified in the 25 notice, not less than thirty days from the time of service, or show 26 cause at a special term of a court of record, or at a county court, in a 27 county in which the property is situated, at a time and place specified 28 therein, why the notice of lien filed or the bond given should not be 29 vacated and cancelled, or the deposit returned, as the case may be. 30 Proof of such service and that the lienor has not commenced the action 31 to foreclose such lien, as directed in the notice, shall be made by 32 affidavit, at the time of applying for such order. 33 2. An employee's lien notice of which has been filed on real property 34 or a bond given to discharge the same may be vacated and cancelled or a 35 deposit made to discharge a lien pursuant to section twenty of this 36 chapter may be returned, by an order of a court of record. Before such 37 order shall be granted, a notice shall be served upon the lienor, either 38 personally or by leaving it at his last known place of residence or 39 attorney's place of business, with a person of suitable age, with 40 directions to deliver it to the lienor. Such notice shall require the 41 lienor to commence an action to enforce the lien, or to commence an 42 action to obtain judgment on the wage claim upon which the lien was 43 established, within a time specified in the notice, not less than thirty 44 days from the time of service, or show cause at a special term of a 45 court of record, or at a county court, in a county in which the property 46 is situated, at a time and place specified therein, why the notice of 47 lien filed or the bond given should not be vacated and cancelled, or the 48 deposit returned, as the case may be. Proof of such service and that the 49 lienor has not commenced the action to foreclose such lien or an action 50 to obtain judgment on the wage claim upon which the lien was estab- 51 lished, as directed in the notice, shall be made by affidavit, at the 52 time of applying for such order. 53 § 25. Section 62 of the lien law, as amended by chapter 697 of the 54 laws of 1934, is amended to read as follows: 55 § 62. Bringing in new parties. A lienor who has filed a notice of lien 56 after the commencement of an action in a court of record to foreclose orS. 2844--B 15 1 enforce an employee's lien or a mechanic's lien against real property or 2 a public improvement, may at any time up to and including the day 3 preceding the day on which the trial of such action is commenced, make 4 application upon notice to the plaintiff or his attorney in such action, 5 to be made a party therein. Upon good cause shown, the court must order 6 such lienor to be brought in by amendment. If the application is made by 7 any other party in said action to make such lienor or other person a 8 party, the court may in its discretion direct such lienor or other 9 person to be brought in by like amendment. The order to be entered on 10 such application shall provide the time for and manner of serving the 11 pleading of such additional lienor or other person and shall direct that 12 the pleadings, papers and proceedings of the other several parties in 13 such action, shall be deemed amended, so as not to require the making or 14 serving of papers other than said order to effectuate such amendment, 15 and shall further provide that the allegations in the answer of such 16 additional lienor or other person shall, for the purposes of the action, 17 be deemed denied by the other parties therein. The action shall be so 18 conducted by the court as not to cause substantially any delay in the 19 trial thereof. The bringing in of such additional lienor or other 20 person shall be without prejudice to the proceedings had, and if the 21 action be on the calendar of the court, same shall retain its place on 22 such calendar without the necessity of serving a new note of issue and 23 new notices of trial. 24 § 26. Subdivision 3 of section 199-a of the labor law, as amended by 25 chapter 564 of the laws of 2010, is amended to read as follows: 26 3. Each employee and his or her authorized representative shall be 27 notified in writing, of the termination of the commissioner's investi- 28 gation of the employee's complaint and the result of such investigation, 29 of any award and collection of back wages and civil penalties, and of 30 any intent to seek criminal penalties. In the event that criminal penal- 31 ties are sought the employee and his or her authorized representative 32 shall be notified of the outcome of prosecution. 33 § 27. Subdivision 2 of section 663 of the labor law, as amended by 34 chapter 564 of the laws of 2010, is amended to read as follows: 35 2. By commissioner. On behalf of any employee paid less than the wage 36 to which the employee is entitled under the provisions of this article, 37 the commissioner may bring any legal action necessary, including admin- 38 istrative action, to collect such claim, and the employer shall be 39 required to pay the full amount of the underpayment, plus costs, and 40 unless the employer proves a good faith basis to believe that its under- 41 payment was in compliance with the law, an additional amount as liqui- 42 dated damages. Liquidated damages shall be calculated by the commission- 43 er as no more than one hundred percent of the total amount of 44 underpayments found to be due the employee. In any action brought by the 45 commissioner in a court of competent jurisdiction, liquidated damages 46 shall be calculated as an amount equal to one hundred percent of under- 47 payments found to be due the employee. Each employee or his or her 48 authorized representative shall be notified in writing of the outcome of 49 any legal action brought on the employee's behalf pursuant to this 50 section. 51 § 28. Subdivision 5 of section 6201 of the civil practice law and 52 rules, as amended by chapter 860 of the laws of 1977 and as renumbered 53 by chapter 618 of the laws of 1992, is amended and a new subdivision 6 54 is added to read as follows: 55 5. the cause of action is based on a judgment, decree or order of a 56 court of the United States or of any other court which is entitled toS. 2844--B 16 1 full faith and credit in this state, or on a judgment which qualifies 2 for recognition under the provisions of article 53[.] of this chapter; 3 or 4 6. the cause of action is based on wage claims. "Wage claims," when 5 used in this chapter, shall include any claims of violations of articles 6 five, six, and nineteen of the labor law, section two hundred fifteen of 7 the labor law, and the related regulations or wage orders promulgated by 8 the commissioner of labor, including but not limited to any claims of 9 unpaid, minimum, overtime, and spread-of-hours pay, unlawfully retained 10 gratuities, unlawful deductions from wages, unpaid commissions, unpaid 11 benefits and wage supplements, and retaliation, and any claims pursuant 12 to 18 U.S.C. § 1595, 29 U.S.C. § 201 et seq., and/or employment contract 13 as well as the concomitant liquidated damages and penalties authorized 14 pursuant to the labor law, the Fair Labor Standards Act, or any employ- 15 ment contract. 16 § 29. Section 6210 of the civil practice law and rules, as added by 17 chapter 860 of the laws of 1977, is amended to read as follows: 18 § 6210. Order of attachment on notice; temporary restraining order; 19 contents. Upon a motion on notice for an order of attachment, the court 20 may, without notice to the defendant, grant a temporary restraining 21 order prohibiting the transfer of assets by a garnishee as provided in 22 subdivision (b) of section 6214. When attachment is sought pursuant to 23 subdivision six of section 6201, and if the employer contests the 24 motion, the court shall hold a hearing within ten days of when the 25 employer's response to plaintiffs' motion for attachment is due. The 26 contents of the order of attachment granted pursuant to this section 27 shall be as provided in subdivision (a) of section 6211. 28 § 30. Subdivision (b) of section 6211 of the civil practice law and 29 rules, as amended by chapter 566 of the laws of 1985, is amended to read 30 as follows: 31 (b) Confirmation of order. Except where an order of attachment is 32 granted on the ground specified in subdivision one or six of section 33 6201, an order of attachment granted without notice shall provide that 34 within a period not to exceed five days after levy, the plaintiff shall 35 move, on such notice as the court shall direct to the defendant, the 36 garnishee, if any, and the sheriff, for an order confirming the order of 37 attachment. Where an order of attachment without notice is granted on 38 the ground specified in subdivision one or six of section 6201, the 39 court shall direct that the statement required by section 6219 be served 40 within five days, that a copy thereof be served upon the plaintiff, and 41 the plaintiff shall move within ten days after levy for an order 42 confirming the order of attachment. If the plaintiff upon such motion 43 shall show that the statement has not been served and that the plaintiff 44 will be unable to satisfy the requirement of subdivision (b) of section 45 6223 until the statement has been served, the court may grant one exten- 46 sion of the time to move for confirmation for a period not to exceed ten 47 days. If plaintiff fails to make such motion within the required period, 48 the order of attachment and any levy thereunder shall have no further 49 effect and shall be vacated upon motion. Upon the motion to confirm, the 50 provisions of subdivision (b) of section 6223 shall apply. An order of 51 attachment granted without notice may provide that the sheriff refrain 52 from taking any property levied upon into his actual custody, pending 53 further order of the court. 54 § 31. Subdivisions (b) and (e) of rule 6212 of the civil practice law 55 and rules, subdivision (b) as separately amended by chapters 15 and 860S. 2844--B 17 1 of the laws of 1977 and subdivision (e) as added by chapter 860 of the 2 laws of 1977, are amended to read as follows: 3 (b) Undertaking. [On] 1. Except where an order of attachment is sought 4 on the ground specified in subdivision six of section 6201, on a motion 5 for an order of attachment, the plaintiff shall give an undertaking, in 6 a total amount fixed by the court, but not less than five hundred 7 dollars, a specified part thereof conditioned that the plaintiff shall 8 pay to the defendant all costs and damages, including reasonable attor- 9 ney's fees, which may be sustained by reason of the attachment if the 10 defendant recovers judgment or if it is finally decided that the plain- 11 tiff was not entitled to an attachment of the defendant's property, and 12 the balance conditioned that the plaintiff shall pay to the sheriff all 13 of his allowable fees. 14 2. On a motion for an attachment pursuant to subdivision six of 15 section 6201, the court shall order that the plaintiff give an accessi- 16 ble undertaking of no more than five hundred dollars, or in the alterna- 17 tive, may waive the undertaking altogether. The attorney for the plain- 18 tiff shall not be liable to the sheriff for such fees. The surety on the 19 undertaking shall not be discharged except upon notice to the sheriff. 20 (e) Damages. [The] Except where an order of attachment is sought on 21 the ground specified in subdivision six of section 6201, the plaintiff 22 shall be liable to the defendant for all costs and damages, including 23 reasonable attorney's fees, which may be sustained by reason of the 24 attachment if the defendant recovers judgment, or if it is finally 25 decided that the plaintiff was not entitled to an attachment of the 26 defendant's property. Plaintiff's liability shall not be limited by the 27 amount of the undertaking. 28 § 32. Paragraph (b) of section 624 of the business corporation law, as 29 amended by chapter 449 of the laws of 1997, is amended to read as 30 follows: 31 (b) Any person who shall have been a shareholder of record of a corpo- 32 ration, or who is or shall have been a laborer, servant or employee, 33 upon at least five days' written demand shall have the right to examine 34 in person or by agent or attorney, during usual business hours, its 35 minutes of the proceedings of its shareholders and record of sharehold- 36 ers and to make extracts therefrom for any purpose reasonably related to 37 such person's interest as a shareholder, laborer, servant or employee, 38 provided the purpose reasonably related to a person's interest as a 39 laborer, servant or employee shall be to obtain the names, addresses, 40 and value of shareholders' interests in the corporation. Holders of 41 voting trust certificates representing shares of the corporation shall 42 be regarded as shareholders for the purpose of this section. Any such 43 agent or attorney shall be authorized in a writing that satisfies the 44 requirements of a writing under paragraph (b) of section 609 (Proxies). 45 A corporation requested to provide information pursuant to this para- 46 graph shall make available such information in written form and in any 47 other format in which such information is maintained by the corporation 48 and shall not be required to provide such information in any other 49 format. If a request made pursuant to this paragraph includes a request 50 to furnish information regarding beneficial owners, the corporation 51 shall make available such information in its possession regarding bene- 52 ficial owners as is provided to the corporation by a registered broker 53 or dealer or a bank, association or other entity that exercises fiduci- 54 ary powers in connection with the forwarding of information to such 55 owners. The corporation shall not be required to obtain information 56 about beneficial owners not in its possession.S. 2844--B 18 1 § 33. Section 630 of the business corporation law, paragraph (a) as 2 amended by chapter 5 of the laws of 2016, paragraph (c) as amended by 3 chapter 746 of the laws of 1963, is amended to read as follows: 4 § 630. Liability of shareholders for wages due to laborers, servants or 5 employees. 6 (a) The ten largest shareholders, as determined by the fair value of 7 their beneficial interest as of the beginning of the period during which 8 the unpaid services referred to in this section are performed, of every 9 domestic corporation or of any foreign corporation, when the unpaid 10 services were performed in the state, no shares of which are listed on a 11 national securities exchange or regularly quoted in an over-the-counter 12 market by one or more members of a national or an affiliated securities 13 association, shall jointly and severally be personally liable for all 14 debts, wages or salaries due and owing to any of its laborers, servants 15 or employees other than contractors, for services performed by them for 16 such corporation. [Before such laborer, servant or employee shall charge17such shareholder for such services, he shall give notice in writing to18such shareholder that he intends to hold him liable under this section.19Such notice shall be given within one hundred and eighty days after20termination of such services, except that if, within such period, the21laborer, servant or employee demands an examination of the record of22shareholders under paragraph (b) of section 624 (Books and records;23right of inspection, prima facie evidence) of this article, such notice24may be given within sixty days after he has been given the opportunity25to examine the record of shareholders. An action to enforce such liabil-26ity shall be commenced within ninety days after the return of an27execution unsatisfied against the corporation upon a judgment recovered28against it for such services.] The provisions of this paragraph shall 29 not apply to an investment company registered as such under an act of 30 congress entitled "Investment Company Act of 1940." 31 (b) For the purposes of this section, wages or salaries shall mean all 32 compensation and benefits payable by an employer to or for the account 33 of the employee for personal services rendered by such employee includ- 34 ing any concomitant liquidated damages, penalties, interest, attorney's 35 fees or costs. These shall specifically include but not be limited to 36 salaries, overtime, vacation, holiday and severance pay; employer 37 contributions to or payments of insurance or welfare benefits; employer 38 contributions to pension or annuity funds; and any other moneys properly 39 due or payable for services rendered by such employee. 40 (c) A shareholder who has paid more than his pro rata share under this 41 section shall be entitled to contribution pro rata from the other share- 42 holders liable under this section with respect to the excess so paid, 43 over and above his pro rata share, and may sue them jointly or severally 44 or any number of them to recover the amount due from them. Such recov- 45 ery may be had in a separate action. As used in this paragraph, "pro 46 rata" means in proportion to beneficial share interest. Before a share- 47 holder may claim contribution from other shareholders under this para- 48 graph, he shall[, unless they have been given notice by a laborer, serv-49ant or employee under paragraph (a),] give them notice in writing that 50 he intends to hold them so liable to him. Such notice shall be given by 51 him within twenty days after the date that [notice was given to him by] 52 he became aware that a laborer, servant or employee may seek to hold him 53 liable under paragraph (a). 54 § 34. Subdivision (c) of section 609 of the limited liability company 55 law, as added by chapter 537 of the laws of 2014, is amended to read as 56 follows:S. 2844--B 19 1 (c) Notwithstanding the provisions of subdivisions (a) and (b) of this 2 section, the ten members with the largest percentage ownership interest, 3 as determined as of the beginning of the period during which the unpaid 4 services referred to in this section are performed, of every limited 5 liability company, shall jointly and severally be personally liable for 6 all debts, wages or salaries due and owing to any of its laborers, serv- 7 ants or employees, for services performed by them for such limited 8 liability company. [Before such laborer, servant or employee shall9charge such member for such services, he or she shall give notice in10writing to such member that he or she intends to hold such member liable11under this section. Such notice shall be given within one hundred eighty12days after termination of such services. An action to enforce such13liability shall be commenced within ninety days after the return of an14execution unsatisfied against the limited liability company upon a judg-15ment recovered against it for such services.] A member who has paid more 16 than his or her pro rata share under this section shall be entitled to 17 contribution pro rata from the other members liable under this section 18 with respect to the excess so paid, over and above his or her pro rata 19 share, and may sue them jointly or severally or any number of them to 20 recover the amount due from them. Such recovery may be had in a separate 21 action. As used in this subdivision, "pro rata" means in proportion to 22 percentage ownership interest. Before a member may claim contribution 23 from other members under this section, he or she shall give them notice 24 in writing that he or she intends to hold them so liable to him or her. 25 § 35. Section 1102 of the limited liability company law is amended by 26 adding a new subdivision (e) to read as follows: 27 (e) Any person who is or shall have been a laborer, servant or employ- 28 ee of a limited liability company, upon at least five days' written 29 demand shall have the right to examine in person or by agent or attor- 30 ney, during usual business hours, records described in paragraph two of 31 subdivision (a) of this section throughout the period of time during 32 which such laborer, servant or employee provided services to such compa- 33 ny. A company requested to provide information pursuant to this para- 34 graph shall make available such records in written form and in any other 35 format in which such information is maintained by the company and shall 36 not be required to provide such information in any other format. Upon 37 refusal by the company or by an officer or agent of the company to 38 permit an inspection of the records described in this paragraph, the 39 person making the demand for inspection may apply to the supreme court 40 in the judicial district where the office of the company is located, 41 upon such notice as the court may direct, for an order directing the 42 company, its members or managers to show cause why an order should not 43 be granted permitting such inspection by the applicant. Upon the return 44 day of the order to show cause, the court shall hear the parties summar- 45 ily, by affidavit or otherwise, and if it appears that the applicant is 46 qualified and entitled to such inspection, the court shall grant an 47 order compelling such inspection and awarding such further relief as to 48 the court may seem just and proper. If the applicant is found to be 49 qualified and entitled to such inspection, the company shall pay all 50 reasonable attorney's fees and costs of said applicant related to the 51 demand for inspection of the records. 52 § 36. This act shall take effect on the thirtieth day after it shall 53 have become a law. The procedures and rights created in this act may be 54 used by employees, laborers or servants in connection with claims for 55 liabilities that arose prior to the effective date.