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Bill > A07405


NY A07405

NY A07405
Requires or allows licensing entities to suspend business licenses for certain businesses that are charged or convicted of wage theft; establishes reporting requirements for wage theft convictions.


summary

Introduced
03/25/2025
In Committee
03/25/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the labor law and the criminal procedure law, in relation to business license suspensions resulting from wage theft

AI Summary

This bill introduces comprehensive measures to combat wage theft by providing state agencies with the authority to suspend business licenses for employers convicted of failing to pay wages, minimum wage, or overtime. The legislation defines key terms such as "successor business" (an entity doing substantially similar work to a previous business) and "license" (which includes various forms of business authorization like incorporation certificates, partnership documents, and municipal business permits). Under the new law, when an employer is convicted of wage theft, the labor commissioner can direct relevant agencies to suspend one or more of their business licenses for a period determined by considering factors like the number of affected employees, total unpaid wages, duration of wage theft, and prior misconduct. The bill also requires courts to notify the labor commissioner of such convictions and provides the court with the power to prohibit convicted employers from applying for new business licenses or operating successor businesses in the same trade during the criminal proceeding. Additionally, the bill mandates that court clerks include conviction details in reports to the labor commissioner, creating a comprehensive reporting mechanism to track and penalize wage theft. The goal is to create a strong deterrent against wage theft by introducing significant professional and financial consequences for employers who violate wage and hour laws.

Committee Categories

Labor and Employment

Sponsors (3)

Last Action

referred to labor (on 03/25/2025)

bill text


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