Bill Text: NY S04992 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to penalties for wilful false statements by employers to avoid payment of unemployment benefits.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO LABOR [S04992 Detail]

Download: New_York-2019-S04992-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4992
                               2019-2020 Regular Sessions
                    IN SENATE
                                      April 3, 2019
                                       ___________
        Introduced  by  Sen.  RAMOS  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Labor
        AN ACT to amend the labor law, in relation to penalties for wilful false
          statements for unemployment purposes
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section 594 of the labor law, as amended by section 16 of
     2  part O of chapter 57 of the laws of 2013, is amended to read as follows:
     3    § 594. [Reduction and recovery] Recovery of benefits and penalties for
     4  wilful false statement. (1) A claimant or employer who has wilfully made
     5  a false statement or representation to obtain or avoid any benefit under
     6  the provisions of this article shall [forfeit benefits for at least  the
     7  first  four  but not more than the first eighty effective days following
     8  discovery of such offense for which he or she otherwise would have  been
     9  entitled  to  receive  benefits. Such penalty shall apply only once with
    10  respect to each such offense.
    11    (2) For the purpose of subdivision four of section five hundred ninety
    12  of this article, the claimant shall be deemed to have received  benefits
    13  for such forfeited effective days.
    14    (3)  The  penalty  provided in this section shall not be confined to a
    15  single benefit year but shall no longer apply in whole or in part  after
    16  the  expiration  of  two years from the date of the final determination.
    17  Such two-year period shall be tolled during the time period  a  claimant
    18  has an appeal pending.
    19    (4)] be subject to the penalties set forth in this section.
    20    (2)  A claimant shall refund all moneys received because of such false
    21  statement or representation and pay a civil penalty in an  amount  equal
    22  to  the  greater  of one hundred dollars or fifteen percent of the total
    23  overpaid benefits determined pursuant to this section. An  employer  who
    24  wilfully  made  a  false statement or representation to avoid payment of
    25  any benefit under the provisions of  this  article  shall  pay  a  civil
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11055-02-9
        S. 4992                             2
     1  penalty  in  an  amount  equal  to the greater of one hundred dollars or
     2  fifteen percent  of  the  total  benefit  determined  pursuant  to  this
     3  section.  The  penalties  collected  hereunder shall be deposited in the
     4  fund.  The  penalties assessed under this subdivision shall apply and be
     5  assessed for any benefits paid under federal unemployment  and  extended
     6  unemployment  programs administered by the department in the same manner
     7  as provided in this article. The penalties in this section shall  be  in
     8  addition  to  any  penalties  imposed under this chapter or any state or
     9  federal criminal statute. No penalties or interest assessed pursuant  to
    10  this section may be deducted or withheld from benefits.
    11    [(5)]  (3)  (a) Upon a determination based upon a willful false state-
    12  ment or representation  becoming  final  through  exhaustion  of  appeal
    13  rights  or  failure  to  exhaust  hearing  rights,  the commissioner may
    14  recover the amount found to be due by commencing a civil action,  or  by
    15  filing  with  the  county clerk of the county where the claimant resides
    16  the final determination of the commissioner or the final decision by  an
    17  administrative  law  judge,  the appeal board, or a court containing the
    18  amount found to be due including interest and civil penalty. The commis-
    19  sioner may only make such a filing with the county clerk when:
    20    (i) The claimant has responded to requests for information prior to  a
    21  determination and such requests for information notified the claimant of
    22  his  or  her  rights  to  a fair hearing as well as the potential conse-
    23  quences of an investigation and final determination under  this  section
    24  including  the notice required by subparagraph (iii) of paragraph (b) of
    25  this subdivision. Additionally if the claimant requested a fair  hearing
    26  or  appeal  subsequent to a determination, that the claimant was present
    27  either in person or through electronic means at such hearing, or  subse-
    28  quent appeal from which a final determination was rendered;
    29    (ii) The commissioner has made efforts to collect on such final deter-
    30  mination; and
    31    (iii) The commissioner has sent a notice, in accordance with paragraph
    32  (b) of this subdivision, of intent to docket such final determination by
    33  first  class or certified mail, return receipt requested, ten days prior
    34  to the docketing of such determination.
    35    (b) The notice required in subparagraph (iii) of paragraph (a) of this
    36  subdivision shall include the following:
    37    (i) That the commissioner intends  to  docket  a  final  determination
    38  against such claimant as a judgment;
    39    (ii) The total amount to be docketed; and
    40    (iii)  Conspicuous  language  that  reads as follows: "Once entered, a
    41  judgment is good and can be used against you for twenty years, and  your
    42  money,  including a portion of your paycheck and/or bank account, may be
    43  taken. Also, a judgment will hurt your credit score and can affect  your
    44  ability to rent a home, find a job, or take out a loan."
    45    §  2.  Section one of this act shall apply to all false statements and
    46  representations determined on or after the effective date  of  this  act
    47  and all forfeited effective days determined prior to such effective date
    48  shall  remain in full force and effect for two years from the expiration
    49  of the initial determination. For purposes of  applying  such  forfeited
    50  benefits,  each effective day shall be considered twenty-five percent of
    51  a claimaint's weekly benefit rate.
    52    § 3. This act shall take effect on the sixtieth  day  after  it  shall
    53  have become a law.