Relates to the liability of payroll processing companies; provides that payroll processing companies that intentionally and wrongfully prevent the distribution of payroll shall be liable to employees that failed to receive an expected payment for an amount up to three times the expected amount; provides an action to recover damages may be maintained as a class action.
Summary
Bill S05467 amends the General Obligations Law to establish the liability of payroll processing companies for failing to remit wages or taxes owed to employees. Specifically, it holds these companies accountable if they intentionally and without good cause prevent the payment of wages, allowing affected employees to recover damages up to three times the owed amount. The bill also permits class action lawsuits for recovery of these damages, expanding the legal avenues available to employees seeking redress.
Impact
The bill introduces significant changes to the liability framework for payroll processing companies in New York. By establishing that these companies can be held liable for intentional failures to process payroll, it strengthens employee protections and may lead to increased accountability in payroll practices. This could also result in changes to how payroll processing companies operate, as they may need to implement more robust systems to ensure compliance with the new liability standards.
Sentiment
The sentiment surrounding Bill S05467 appears to be supportive among advocates for employee rights, who see it as a necessary measure to protect workers from potential malfeasance by payroll processing companies. However, there may be concerns from payroll processing companies regarding the increased liability and operational challenges posed by the bill, which could lead to some opposition.
Contention
Notable points of contention include the definition of 'good cause' for payroll processing companies to avoid liability, which some may argue is too vague and could lead to excessive litigation. Additionally, payroll processing companies may express concerns about the financial implications of being liable for up to three times the owed amount, which could impact their business models and operational costs.
Relates to the liability of payroll processing companies; provides that payroll processing companies that intentionally and wrongfully prevent the distribution of payroll shall be liable to employees that failed to receive an expected payment for an amount up to three times the expected amount; provides an action to recover damages may be maintained as a class action.
Establishes the crime of misappropriation of payroll funds when a person knows that funds are designated for use as employee payroll funds or as payment of payroll taxes, and intentionally prevents the funds from being used for their designated purpose.
Establishes the crime of misappropriation of payroll funds when a person knows that funds are designated for use as employee payroll funds or as payment of payroll taxes, and intentionally prevents the funds from being used for their designated purpose.
Establishes the crime of misappropriation of payroll funds when a person knows that funds are designated for use as employee payroll funds or as payment of payroll taxes, and intentionally prevents the funds from being used for their designated purpose.
Provides that contractors and subcontractors to cable television companies who are assessed penalties for two separate violations of payroll reporting requirements shall be ineligible to submit a bid on or be awarded any public work contract with the state, any municipal corporation or public body for five years; provides that cable television companies shall be subject to the requirement that workers on certain excavation projects be paid not less than a prevailing rate of wage.
Enacting an excise tax on large operating companies on the amount of payroll expenses above the minimum wage threshold of the additional medicare tax to fund services to benefit Washingtonians and establishing the Well Washington fund account.
Enacting an excise tax on large employers on the amount of payroll expenses above the social security wage threshold to fund programs and services to benefit Washingtonians.
Relates to awards to employees who prevail in actions on kick-back claims; provides that such employees shall be entitled to the full amount of what was received, liquidated damages, attorney's fees and prejudgment interest.