Bill > S07776

This bill, known as the "Faithless Servant Reform Act," introduces significant protections for employees against potential retaliatory actions by employers. The legislation creates a rebuttable presumption of retaliation or discrimination when an employer files or threatens to file a claim seeking to forfeit an employee's compensation in response to an employee's wage-related claim. Under the new law, employers now bear the burden of proof if they want to pursue wage forfeiture, and must demonstrate by clear and convincing evidence that an employee's conduct was extensively egregious, involved more than a single act, and was not previously known or tolerated by the employer. The bill limits potential forfeiture to only the specific pay periods where misconduct occurred and explicitly protects minimum wage and overtime payments from being withheld. Importantly, the law aims to safeguard employees from overly broad claims of disloyalty and ensure that any potential forfeiture of compensation is narrowly and consistently applied. The bill also preserves employees' existing rights under other laws, regulations, collective bargaining agreements, and employment contracts, making it a comprehensive employee protection measure.

Budget and Finance, Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/S7776