Bill Text: NY A03757 | 2017-2018 | General Assembly | Introduced

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Bill Title: Relates to the liability of members of limited liability companies for wages due to laborers, servants or employees.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2018-01-24 - enacting clause stricken [A03757 Detail]

Download: New_York-2017-A03757-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3757
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 30, 2017
                                       ___________
        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee on Corporations, Authorities and Commissions
        AN  ACT  to  amend the limited liability company law, in relation to the
          liability of members for wages due to laborers, servants or employees
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The  limited liability company law is amended by adding a
     2  new section 612 to read as follows:
     3    § 612. Liability of members for wages due  to  laborers,  servants  or
     4  employees.  (a)  Notwithstanding  the  provisions of section six hundred
     5  nine of this article, the ten largest members  of  a  limited  liability
     6  company, as determined by the fair value of their beneficial interest as
     7  of the beginning of the period during which the unpaid services referred
     8  to  in  this  section  are  performed,  shall  jointly  and severally be
     9  personally liable for all debts, wages or salaries due and owing to  any
    10  of  its  laborers,  servants  or  employees  other than contractors, for
    11  services performed by them for such limited  liability  company.  Before
    12  such  laborer,  servant  or  employee  shall charge such member for such
    13  services, he or she shall give notice in writing to such member that  he
    14  or she intends to hold him or her liable under this section. Such notice
    15  shall  be given within one hundred eighty days after termination of such
    16  services, except that if, within such period, the  laborer,  servant  or
    17  employee  demands an examination of the records under subdivision (b) of
    18  section one thousand one hundred two of this chapter, such notice may be
    19  given within sixty days after he or she has been given  the  opportunity
    20  to  examine  the  records.  An action to enforce such liability shall be
    21  commenced within ninety days after the return of an  execution  unsatis-
    22  fied  against  the  limited  liability company upon a judgment recovered
    23  against it for such services.
    24    (b) For the purposes of this section, wages or salaries shall mean all
    25  compensation and benefits payable by an employer to or for  the  account
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07525-01-7
        A. 3757                             2
     1  of  the  employee for personal services rendered by such employee. These
     2  shall specifically include but not limited to salaries, overtime,  vaca-
     3  tion,  holiday  and severance pay; employer contributions to or payments
     4  of  insurance  or welfare benefits; employer contributions to pension or
     5  annuity funds; and any other moneys properly due or payable for services
     6  rendered by such employee.
     7    (c) A member who has paid more than his or her pro  rata  share  under
     8  this  section  shall be entitled to contribution pro rata from the other
     9  members liable under this section with respect to the  excess  so  paid,
    10  over  and  above  his or her pro rata share, and may sue them jointly or
    11  severally or any number of them to recover the  amount  due  from  them.
    12  Such  recovery may be had in a separate action. As used in this subdivi-
    13  sion, "pro rata" means  in  proportion  to  beneficial  share  interest.
    14  Before  a  member  may  claim contribution from other members under this
    15  subdivision, such member shall, unless he or she has been  given  notice
    16  by a laborer, servant or employee under subdivision (a) of this section,
    17  give  them  notice  in  writing  that  he or she intends to hold them so
    18  liable to him or her. Such notice shall be given by him  or  her  within
    19  twenty  days  after  the  date  that notice was given to him or her by a
    20  laborer, servant or employee under subdivision (a) of this section.
    21    § 2. This act shall take effect immediately.