Bill > A03382

This bill establishes a new criminal offense in New York's penal law called misappropriation of payroll funds. The crime occurs when a person knowingly prevents funds specifically designated for employee wages or payroll taxes from being used for their intended purpose. The bill clarifies that a delayed transfer of funds by a payroll processing company for the purpose of investigating potentially fraudulent transactions is not considered misappropriation. Additionally, payroll processing companies are not held responsible if an employer fails to provide sufficient funds. The offense is classified as a class E felony, which typically carries a potential prison sentence of up to four years. The purpose of this legislation appears to be protecting employees' rights to receive their earned wages and ensuring that employers do not improperly divert or misuse funds intended for payroll and tax obligations. The bill would take effect immediately upon becoming law.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/A3382