Bill
Bill > A04994
NY A04994
NY A04994Provides 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; relates to penalties for certain wage violations.
summary
Introduced
02/10/2025
02/10/2025
In Committee
02/10/2025
02/10/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 General Assembly
Bill Summary
AN ACT to amend the civil practice law and rules, in relation to grounds for attachment; to amend the business corporation law, in relation to streamlining procedures where employees may hold shareholders of nonpublicly traded corporations personally liable for wage theft; to amend the limited 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; and to amend the labor law, in relation to penalties for certain wage violations
AI Summary
This bill provides enhanced legal protections for employees facing wage theft by expanding their ability to hold corporate shareholders and members personally liable for unpaid wages in non-publicly traded corporations and limited liability companies. Specifically, the bill allows employees to seek recovery of wages directly from the ten largest shareholders or members, broadening the definition of recoverable wages to include not just base pay, but also overtime, benefits, penalties, liquidated damages, and attorney's fees. The bill also streamlines procedural requirements for employees seeking to inspect corporate records and pursue claims, making it easier to identify and hold responsible parties accountable. For instance, it reduces notification and action timeframes, allows more flexible record inspection rights, and ensures that successor employers can be held liable for wage violations of prior entities with substantially similar operations. The legislation aims to provide stronger deterrents against wage theft by creating more direct pathways for employees to recover unpaid compensation and hold business owners personally responsible for labor law violations. The bill will take effect 30 days after becoming law and can be applied to wage claims that arose even before its effective date.
Committee Categories
Justice
Sponsors (13)
Linda Rosenthal (D)*,
Harry Bronson (D),
Manny De Los Santos (D),
Jeffrey Dinowitz (D),
Harvey Epstein (D),
Zohran Mamdani (D),
Marcela Mitaynes (D),
Karines Reyes (D),
Angelo Santabarbara (D),
Sarahana Shrestha (D),
Jo Anne Simon (D),
Yudelka Tapia (D),
Claire Valdez (D),
Last Action
referred to judiciary (on 02/10/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.nysenate.gov/legislation/bills/2025/A4994 |
BillText | https://assembly.state.ny.us/leg/?default_fld=&bn=A04994&term=2025&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y#A04994 |
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