Bill > S05467

This bill amends the New York General Obligations Law to establish specific liability provisions for payroll processing companies. The bill defines a payroll processing company as a business entity contracted by an employer to handle wage calculations, tax withholdings, and payroll processing, with detailed criteria including using the employer's federal identification number. Under the proposed law, if a payroll processing company intentionally and without good cause prevents the payment of wages, it can be held liable to employees for up to three times the amount of the owed payment. The bill provides several examples of what might constitute "good cause" for preventing payment, such as insufficient employer funds, potential fraud verification, or legal compliance issues. Importantly, the bill allows employees to pursue damages through a class action lawsuit, even if standard class action rules might typically prohibit such an approach. The legislation aims to protect workers by creating a clear legal mechanism to hold payroll processing companies accountable for wrongfully withholding or delaying wage payments, with significant financial penalties as a deterrent. The bill would take effect immediately upon passage.

Justice

https://www.nysenate.gov/legislation/bills/2025/S5467