Bill > A08336

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 if an employer files or threatens to file a claim seeking to forfeit an employee's compensation after the employee has asserted a legal claim. The bill places a high burden of proof on employers seeking to forfeit an employee's wages, requiring clear and convincing evidence that the employee's conduct was pervasive and egregious enough to fundamentally undermine the employment relationship. Forfeiture is strictly limited to specific circumstances, such as unfair competition or diverting business opportunities, and even then, can only apply to compensation for the specific pay periods of misconduct. Critically, the bill explicitly protects minimum wage and overtime payments from forfeiture, ensuring that employees cannot lose these basic wage protections. The legislation aims to safeguard employees from retaliatory legal actions and ensure that any claims of employee disloyalty are substantiated, narrowly applied, and consistently evaluated. By establishing these protections, the bill seeks to create a more balanced approach to addressing potential misconduct in the workplace while preventing employers from using wage forfeiture as a punitive or retaliatory tool.

Labor and Employment

https://www.nysenate.gov/legislation/bills/2025/A8336