S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8045

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 17, 2013
                               ___________

Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
  Committee on Judiciary

AN ACT to amend the lien law, in relation to securing payment  of  wages
  for work already performed; to amend the civil practice law and rules,
  in  relation  to  grounds for attachment; to amend the business corpo-
  ration law, in relation to streamlining procedures where employees may
  hold  shareholders  of  non-publicly  traded  corporations  personally
  liable for wage theft; and to amend the limited liability company law,
  in  relation to creating a right for victims of wage theft to hold the
  ten  members  with  the  largest  ownership  interests  in  a  company
  personally liable for wage theft

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 2 of the lien law is amended  by  adding  four  new
subdivisions 21, 22, 23, and 24 to read as follows:
  21.  WAGE  CLAIMS.  THE TERM "WAGE CLAIMS," WHEN USED IN THIS CHAPTER,
SHALL INCLUDE ANY CLAIMS OF VIOLATIONS UNDER  ARTICLES  FIVE,  SIX,  AND
NINETEEN  OF  THE  LABOR LAW, AND THE RELATED REGULATIONS OR WAGE ORDERS
PROMULGATED BY THE COMMISSIONER OF LABOR, INCLUDING BUT NOT  LIMITED  TO
ANY CLAIMS OF UNPAID, MINIMUM, OVERTIME, AND SPREAD-OF-HOURS PAY, UNLAW-
FULLY  RETAINED  GRATUITIES,  UNLAWFUL  DEDUCTIONS  FROM  WAGES,  UNPAID
COMMISSIONS, AND UNPAID BENEFITS AND WAGE SUPPLEMENTS,  AND  ANY  CLAIMS
PURSUANT  TO  18 U.S.C. S 1595, 29 U.S.C. S 206, 29 U.S.C. S 207, AND/OR
ANY EMPLOYMENT CONTRACT, AS WELL AS THE CONCOMITANT  LIQUIDATED  DAMAGES
AND PENALTIES AUTHORIZED PURSUANT TO THE LABOR LAW, THE FAIR LABOR STAN-
DARDS ACT, OR ANY EMPLOYMENT CONTRACT.
  22.  EMPLOYER. THE TERM "EMPLOYER," WHEN USED IN ARTICLE TWO-A OF THIS
CHAPTER, SHALL HAVE THE SAME MEANING AS "EMPLOYER" PURSUANT TO THE LABOR
LAW OR THE FAIR LABOR STANDARDS ACT, AS APPLICABLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11384-02-3

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  23. EMPLOYEE. THE TERM "EMPLOYEE," WHEN USED IN ARTICLE TWO-A OF  THIS
CHAPTER, SHALL HAVE THE SAME MEANING AS "EMPLOYEE" PURSUANT TO THE LABOR
LAW OR THE FAIR LABOR STANDARDS ACT, AS APPLICABLE.
  24.  PERSONAL  PROPERTY.  THE  TERM  "PERSONAL PROPERTY," WHEN USED IN
ARTICLE TWO-A OF THIS CHAPTER, SHALL HAVE THE SAME MEANING AS  "PERSONAL
PROPERTY"  PURSUANT  TO  SECTION THIRTY-NINE OF THE GENERAL CONSTRUCTION
LAW, EXCEPT WHERE EXEMPT BY FEDERAL LAW.
  S 2. The lien law is amended by adding a new article 2-A  to  read  as
follows:
                               ARTICLE 2-A
                                WAGE LIEN
SECTION 39-AA. WAGE LIEN.
        39-BB. ESTABLISHING A LIEN FOR WAGE CLAIMS.
        39-CC. ENFORCEMENT OF A LIEN FOR WAGE CLAIMS ON REAL PROPERTY.
        39-DD. ENFORCEMENT OF A LIEN FOR WAGE CLAIMS ON PERSONAL PROPER-
                 TY.
        39-EE. REGULATIONS.
        39-FF. RIGHTS.
        39-GG. FORCE AND EFFECT.
        39-HH. OPERATION.
  S 39-AA. WAGE LIEN.  AN EMPLOYEE OR THE COMMISSIONER OF LABOR SHALL BE
ENTITLED  TO A LIEN UPON ALL PROPERTY OF THE EMPLOYER, REAL OR PERSONAL,
LOCATED IN THIS STATE FOR THE FULL AMOUNT OF THE WAGE CLAIMS,  INCLUDING
THE PENALTIES AUTHORIZED PURSUANT TO THE LABOR LAW, THE FAIR LABOR STAN-
DARDS  ACT,  OR  THE  CONTRACT  IN  ISSUE. SUCH LIEN SHALL EXTEND TO THE
EMPLOYER-OWNER'S RIGHT, TITLE OR INTEREST IN THE REAL AND PERSONAL PROP-
ERTY, EXISTING AT THE TIME OF FILING THE NOTICE OF LIEN,  OR  THEREAFTER
ACQUIRED, AND SHALL HAVE THE SAME PRIORITY AS A MECHANIC'S LIEN PURSUANT
TO SECTION THIRTEEN OF THIS CHAPTER.
  S  39-BB.  ESTABLISHING A LIEN FOR WAGE CLAIMS. 1. TO ESTABLISH A LIEN
FOR WAGE CLAIMS UNDER THIS ARTICLE, AN EMPLOYEE SHALL:
  (A) PROVIDE AND SERVE WRITTEN NOTICE TO AN EMPLOYER IN ACCORDANCE WITH
THE REQUIREMENTS SET FORTH IN SECTIONS NINE AND ELEVEN OF  THIS  CHAPTER
TO  PROVIDE  THE  EMPLOYER WITH ADEQUATE NOTICE OF THE WAGES CLAIMED AND
THE PROPERTY AGAINST WHICH THE LIEN FOR WAGE CLAIMS IS SOUGHT;
  (B) SERVE WRITTEN NOTICE  TO  AN  EMPLOYER  AT  ANY  TIME  DURING  THE
PROGRESS OF THE WORK, OR WITHIN SIX YEARS AFTER THE FINAL PERFORMANCE OF
THE WORK, AND OTHERWISE IN ACCORDANCE WITH THE REQUIREMENTS SET FORTH IN
SECTION TEN OF THIS CHAPTER.
  2.  IF  PAYMENT  IS  MADE  FOR THE AMOUNT OF WAGE CLAIMS STATED IN THE
NOTICE OF WAGE LIEN, THE RECORDED LIEN FOR  THE  WAGE  CLAIMS  SHALL  BE
RELEASED AS SET FORTH IN ARTICLE TWO OF THIS CHAPTER.
  3.  A  LIEN  FOR WAGE CLAIMS SHALL BE A LIEN FOR A PERIOD OF TEN YEARS
AFTER THE EMPLOYEE HAS FILED THE NOTICE OF LIEN, UNLESS WITHIN THAT TIME
AN ACTION IS COMMENCED TO FORECLOSE  THE  LIEN,  AND  A  NOTICE  OF  THE
PENDENCY OF SUCH ACTION IS FILED. NOTWITHSTANDING THIS PROVISION, A LIEN
FOR  WAGE CLAIMS SHALL HAVE THE SAME FORCE AND EFFECT OF A LIEN PURSUANT
TO ARTICLE TWO OF THIS CHAPTER.
  S 39-CC. ENFORCEMENT OF A LIEN FOR WAGE CLAIMS ON REAL PROPERTY.  1. A
LIEN FOR WAGE CLAIMS ON REAL  PROPERTY  MAY  BE  ENFORCED  IN  NEW  YORK
SUPREME  COURT,  COUNTY  COURT,  OR  IN  A COURT WITH JURISDICTION IN AN
ACTION FOUNDED ON A CONTRACT FOR A SUM OF MONEY EQUIVALENT TO THE AMOUNT
OF SUCH DEBT, IN ACCORDANCE WITH THE REQUIREMENTS SET FORTH  IN  SECTION
FORTY-ONE OF THIS CHAPTER. IF THE CONTRACT BETWEEN EMPLOYER AND EMPLOYEE
VIOLATES  THE  MINIMUM  PROTECTIONS OF THE LABOR LAW, THE NOTICE OF LIEN

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MAY STATE THE LEGAL VALUE OF THE LABOR PERFORMED, AND A COURT MAY  LATER
DETERMINE UPON TRIAL A HIGHER VALUE THAN THAT STATED BY CLAIMANT.
  2.  THE  EMPLOYEE  OR  PERSON  WHO  FILES A WAGE LIEN WHO RECOVERS ANY
WAGES, DAMAGES, AND PENALTIES PURSUANT TO SUCH LIEN SHALL BE ENTITLED TO
ALSO RECOVER REASONABLE ATTORNEY'S FEES AND COSTS EXPENDED IN ANY ACTION
OR PROCEEDING TO FILE AND ENFORCE THE WAGE LIEN.
  3. WHERE IN ANY ACTION OR PROCEEDING TO ENFORCE A WAGE LIEN THE  COURT
SHALL  HAVE DECLARED SAID LIEN TO BE VOID ON ACCOUNT OF WILLFUL EXAGGER-
ATION BY THE PERSON FILING SUCH NOTICE OF  LIEN,  THE  COURT  MAY  AWARD
COURT COSTS AND REASONABLE ATTORNEY'S FEES TO THE EMPLOYER.
  4.  ANY NUMBER OF ACTIONS OR PROCEEDINGS TO ENFORCE WAGE LIENS AGAINST
THE SAME EMPLOYER MAY BE JOINED IN A SINGLE PROCEEDING UPON THE  COURT'S
OWN MOTION OR UPON THE APPLICATION OF ANY PARTY.
  S 39-DD. ENFORCEMENT OF A LIEN FOR WAGE CLAIMS ON PERSONAL PROPERTY. A
LIEN  FOR  WAGE  CLAIMS ON PERSONAL PROPERTY MAY BE ENFORCED IN THE SAME
MANNER AS IS REQUIRED TO PERFECT A SECURITY INTEREST UNDER PARAGRAPH TWO
OF SUBSECTION (A) OF SECTION 9-501 ET SEQ.  OF  THE  UNIFORM  COMMERCIAL
CODE.  SUCH  NOTICE  OF  LIEN SHALL BE MADE TO THE SECRETARY OF STATE IN
WRITING, SPECIFYING THE PERSON AGAINST  WHOM  THE  CLAIM  IS  MADE,  THE
AMOUNT OF THE SAME AND A DESCRIPTION OF THE PROPERTY UPON WHICH THE LIEN
IS  CLAIMED.  THE SALE OF THE PROPERTY MAY BE ENFORCED UNDER SECTION TWO
HUNDRED OF THIS CHAPTER. SUCH INTEREST SHALL TERMINATE IN FIVE YEARS  IN
ACCORDANCE WITH SECTION 9-515 OF THE UNIFORM COMMERCIAL CODE.
  S  39-EE. REGULATIONS. THE COMMISSIONER OF THE DEPARTMENT OF LABOR MAY
SEEK TO ESTABLISH A LIEN FOR WAGE CLAIMS ON BEHALF OF  AN  EMPLOYEE  AND
ADOPT REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS ARTICLE.
  S  39-FF.  RIGHTS.  THIS  ARTICLE  MAY  NOT BE CONSTRUED TO PREVENT AN
EMPLOYEE FROM EXERCISING ANY RIGHT OR SEEKING ANY REMEDY  TO  WHICH  THE
EMPLOYEE MAY OTHERWISE BE ENTITLED.
  S  39-GG.  FORCE AND EFFECT. A WAGE LIEN SHALL HAVE THE SAME FORCE AND
EFFECT AS A MECHANIC'S LIEN PURSUANT TO SUBDIVISION ONE OF SECTION THIR-
TEEN OF THIS CHAPTER, AND SHALL HAVE PRIORITY OVER A  CONVEYANCE,  MORT-
GAGE, JUDGMENT, OR OTHER CLAIM AGAINST SUCH PROPERTY NOT RECORDED, DOCK-
ETED, OR FILED AT THE TIME OF THE FILING OF THE NOTICE OF THE LIEN.
  S  39-HH.  OPERATION.  WHERE APPLICABLE, THE OPERATION OF THIS ARTICLE
MAY BE CONSTRUED WITH REFERENCE TO THE REQUIREMENTS SET FORTH IN ARTICLE
TWO OF THIS CHAPTER.
  S 3. Subdivision 5 of section 6201  of  the  civil  practice  law  and
rules,  as  amended by chapter 860 of the laws of 1977 and as renumbered
by chapter 618 of the laws of 1992, is amended and a new  subdivision  6
is added to read as follows:
  5.  the  cause  of action is based on a judgment, decree or order of a
court of the United States or of any other court which  is  entitled  to
full  faith  and  credit in this state, or on a judgment which qualifies
for recognition under the provisions of article 53[.] OF  THIS  CHAPTER;
OR
  6.  THE  CAUSE  OF ACTION IS BASED ON WAGE CLAIMS. "WAGE CLAIMS," WHEN
USED IN THIS CHAPTER, SHALL INCLUDE ANY CLAIMS OF VIOLATIONS OF ARTICLES
FIVE, SIX, AND NINETEEN OF THE LABOR LAW, SECTION TWO HUNDRED FIFTEEN OF
THE LABOR LAW, AND THE RELATED REGULATIONS OR WAGE ORDERS PROMULGATED BY
THE COMMISSIONER OF LABOR, INCLUDING BUT NOT LIMITED TO  ANY  CLAIMS  OF
UNPAID,  MINIMUM, OVERTIME, AND SPREAD-OF-HOURS PAY, UNLAWFULLY RETAINED
GRATUITIES, UNLAWFUL DEDUCTIONS FROM WAGES, UNPAID  COMMISSIONS,  UNPAID
BENEFITS  AND WAGE SUPPLEMENTS, AND RETALIATION, AND ANY CLAIMS PURSUANT
TO 18 U.S.C. S 1595, 29 U.S.C. S 201 ET SEQ., AND/OR EMPLOYMENT CONTRACT
AS WELL AS THE CONCOMITANT LIQUIDATED DAMAGES AND  PENALTIES  AUTHORIZED

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PURSUANT  TO THE LABOR LAW, THE FAIR LABOR STANDARDS ACT, OR ANY EMPLOY-
MENT CONTRACT.
  S  4.  Section  6210  of the civil practice law and rules, as added by
chapter 860 of the laws of 1977, is amended to read as follows:
  S 6210. Order of attachment on notice;  temporary  restraining  order;
contents.  Upon a motion on notice for an order of attachment, the court
may, without notice to the  defendant,  grant  a  temporary  restraining
order  prohibiting  the transfer of assets by a garnishee as provided in
subdivision (b) of section 6214. WHEN ATTACHMENT IS SOUGHT  PURSUANT  TO
SUBDIVISION  SIX  OF  SECTION  6201,  AND  IF  THE EMPLOYER CONTESTS THE
MOTION, THE COURT SHALL HOLD A HEARING  WITHIN  TEN  DAYS  OF  WHEN  THE
EMPLOYER'S  RESPONSE  TO  PLAINTIFFS'  MOTION FOR ATTACHMENT IS DUE. The
contents of the order of attachment granted  pursuant  to  this  section
shall be as provided in subdivision (a) of section 6211.
  S  5.  Subdivision  (b)  of section 6211 of the civil practice law and
rules, as amended by chapter 566 of the laws of 1985, is amended to read
as follows:
  (b) Confirmation of order. Except where  an  order  of  attachment  is
granted  on  the  ground specified in [subdivision] SUBDIVISIONS one AND
SIX of section 6201, an order of attachment granted without notice shall
provide that within a period not to exceed five  days  after  levy,  the
plaintiff  shall  move,  on such notice as the court shall direct to the
defendant, the garnishee, if any, and the sheriff, for an order confirm-
ing the order of attachment. Where an order of attachment without notice
is granted on the ground specified in [subdivision] SUBDIVISIONS one AND
SIX of section 6201, the court shall direct that the statement  required
by  section  6219  be  served  within  five days, that a copy thereof be
served upon the plaintiff, and the plaintiff shall move within ten  days
after  levy  for  an  order  confirming  the order of attachment. If the
plaintiff upon such motion shall show that the statement  has  not  been
served  and that the plaintiff will be unable to satisfy the requirement
of subdivision (b) of section 6223 until the statement has been  served,
the  court  may grant one extension of the time to move for confirmation
for a period not to exceed ten days. If plaintiff  fails  to  make  such
motion  within the required period, the order of attachment and any levy
thereunder shall have no  further  effect  and  shall  be  vacated  upon
motion. Upon the motion to confirm, the provisions of subdivision (b) of
section  6223 shall apply. An order of attachment granted without notice
may provide that the sheriff refrain from  taking  any  property  levied
upon into his actual custody, pending further order of the court.
  S  6.  Rule  6212  of  the civil practice law and rules, as amended by
chapter 860 of the laws of 1977, subdivision (b) as  separately  amended
by  chapters  15  and  860  of  the  laws of 1977, is amended to read as
follows:
  Rule 6212. Motion papers; undertaking; filing; demand; damages.    (a)
Affidavit;  other papers. On a motion for an order of attachment, or for
an order to confirm an order of attachment, the plaintiff shall show, by
affidavit and such other written evidence  as  may  be  submitted,  that
there  is a cause of action, that it is probable that the plaintiff will
succeed on the merits, that one or more grounds for attachment  provided
in  section  6201 exist, and that the amount demanded from the defendant
exceeds all counterclaims known to the plaintiff.   WHEN  ATTACHMENT  IS
SOUGHT  PURSUANT  TO SUBDIVISION SIX OF SECTION 6201, ONCE THE PLAINTIFF
HAS MADE THE INITIAL SHOWING, THE COURT SHALL GRANT AN ATTACHMENT UNLESS
THE DEFENDANT CAN SHOW THAT AN ATTACHMENT WOULD BE UNJUST.

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  (b) Undertaking. [On] 1. EXCEPT WHERE AN ORDER OF ATTACHMENT IS SOUGHT
ON THE GROUND SPECIFIED IN SUBDIVISION SIX OF SECTION 6201, ON a  motion
for  an order of attachment, the plaintiff shall give an undertaking, in
a total amount fixed by the  court,  but  not  less  than  five  hundred
dollars,  a  specified part thereof conditioned that the plaintiff shall
pay to the defendant all costs and damages, including reasonable  attor-
ney's  fees,  which  may be sustained by reason of the attachment if the
defendant recovers judgment or if it is finally decided that the  plain-
tiff  was not entitled to an attachment of the defendant's property, and
the balance conditioned that the plaintiff shall pay to the sheriff  all
of his allowable fees.
  2.  ON  A  MOTION  FOR  AN  ATTACHMENT  PURSUANT TO SUBDIVISION SIX OF
SECTION 6201, THE COURT SHALL ORDER THAT THE PLAINTIFF GIVE AN  ACCESSI-
BLE UNDERTAKING OF NO MORE THAN FIVE HUNDRED DOLLARS, OR IN THE ALTERNA-
TIVE,  MAY WAIVE THE UNDERTAKING ALTOGETHER. The attorney for the plain-
tiff shall not be liable to the sheriff for such fees. The surety on the
undertaking shall not be discharged except upon notice to the sheriff.
  (c) Filing. Within ten days after the granting of an order of  attach-
ment,  the  plaintiff  shall  file it and the affidavit and other papers
upon which it was based and the summons and  complaint  in  the  action.
Unless the time for filing has been extended, the order shall be invalid
if  not  so filed, except that a person upon whom it is served shall not
be liable for acting upon it as if it were valid  without  knowledge  of
the invalidity.
  (d)  Demand  for  papers.  At  any time after property has been levied
upon, the defendant may serve upon the plaintiff a written  demand  that
the  papers  upon which the order of attachment was granted and the levy
made be served upon him. Not more than one  day  after  service  of  the
demand,  the  plaintiff  shall cause the papers demanded to be served at
the address specified in the demand. A  demand  under  this  subdivision
shall not of itself constitute an appearance in the action.
  (e)  Damages.  [The]  EXCEPT WHERE AN ORDER OF ATTACHMENT IS SOUGHT ON
THE GROUND SPECIFIED IN SUBDIVISION SIX OF SECTION 6201,  THE  plaintiff
shall  be  liable  to the defendant for all costs and damages, including
reasonable attorney's fees, which may be  sustained  by  reason  of  the
attachment  if  the  defendant  recovers  judgment,  or if it is finally
decided that the plaintiff was not entitled  to  an  attachment  of  the
defendant's  property. Plaintiff's liability shall not be limited by the
amount of the undertaking.
  S 7. Section 6223 of the civil practice law and rules, as  amended  by
chapter 860 of the laws of 1977, is amended to read as follows:
  S  6223.  Vacating  or  modifying  attachment. (a) Motion to vacate or
modify.  Prior to the application of property or debt to  the  satisfac-
tion of a judgment, the defendant, the garnishee or any person having an
interest  in  the property or debt may move, on notice to each party and
the sheriff, for an order vacating or modifying the order of attachment.
Upon the motion, the court may give the plaintiff a reasonable  opportu-
nity  to  correct  any defect. [If] EXCEPT AS PROVIDED UNDER SUBDIVISION
(B), IF, after the defendant has  appeared  in  the  action,  the  court
determines  that  the  attachment  is unnecessary to the security of the
plaintiff, it shall vacate the order of attachment.  Such a motion shall
not of itself constitute an appearance in the action.
  (b) Burden of proof. [Upon] EXCEPT WHERE AN  ORDER  OF  ATTACHMENT  IS
GRANTED  PURSUANT  TO  SUBDIVISION SIX OF SECTION 6201, UPON a motion to
vacate or modify an order of attachment the  plaintiff  shall  have  the
burden  of  establishing  the  grounds  for the attachment, the need for

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continuing the levy and the probability that  he  will  succeed  on  the
merits. UPON A MOTION TO VACATE OR MODIFY AN ORDER OF ATTACHMENT GRANTED
PURSUANT  TO  SUBDIVISION  SIX OF SECTION 6201, THE DEFENDANT SHALL HAVE
THE BURDEN TO DEMONSTRATE EXTRAORDINARY CIRCUMSTANCES IN ORDER TO VACATE
OR MODIFY THE ATTACHMENT ORDER.
  S  8. Paragraph (b) of section 624 of the business corporation law, as
amended by chapter 449 of the laws  of  1997,  is  amended  to  read  as
follows:
  (b) Any person who shall have been a shareholder of record of a corpo-
ration,  OR  WHO  IS  OR  SHALL HAVE BEEN A LABORER, SERVANT OR EMPLOYEE
OTHER THAN A CONTRACTOR, upon at least five days' written  demand  shall
have  the  right  to  examine  in person or by agent or attorney, during
usual business hours, its minutes of the proceedings of its shareholders
and record of shareholders  and  to  make  extracts  therefrom  for  any
purpose  reasonably  related to such person's interest as a shareholder,
LABORER, SERVANT OR  EMPLOYEE.  Holders  of  voting  trust  certificates
representing shares of the corporation shall be regarded as shareholders
for  the  purpose  of this section.  Any such agent or attorney shall be
authorized in a writing that satisfies the  requirements  of  a  writing
under  paragraph  (b) of section 609 OF THIS ARTICLE (Proxies). A corpo-
ration requested to provide information pursuant to this paragraph shall
make available such information in written form and in any other  format
in which such information is maintained by the corporation and shall not
be  required  to  provide  such  information  in  any other format. If a
request made pursuant to this paragraph includes a  request  to  furnish
information  regarding  beneficial  owners,  the  corporation shall make
available such information in its possession regarding beneficial owners
as is provided to the corporation by a registered broker or dealer or  a
bank,  association  or  other  entity that exercises fiduciary powers in
connection with the forwarding of information to such owners. The corpo-
ration shall not be required  to  obtain  information  about  beneficial
owners not in its possession.
  S  9.  Section  630  of the business corporation law, paragraph (a) as
amended by chapter 212 of the laws of 1984, paragraph (c) as amended  by
chapter 746 of the laws of 1963, is amended to read as follows:
S 630. Liability  of shareholders for wages due to laborers, servants or
         employees.
  (a) The ten largest shareholders, as determined by the fair  value  of
their beneficial interest as of the beginning of the period during which
the  unpaid services referred to in this section are performed, of every
corporation (other than an investment company registered as  such  under
an act of congress entitled "Investment Company Act of 1940"), no shares
of which are listed on a national securities exchange or regularly quot-
ed in an over-the-counter market by one or more members of a national or
an  affiliated  securities  association,  shall jointly and severally be
personally liable for all debts, wages or salaries due and owing to  any
of  its  laborers,  servants  or  employees  other than contractors, for
services performed by them for such corporation. [Before  such  laborer,
servant  or employee shall charge such shareholder for such services, he
shall give notice in writing to such shareholder that he intends to hold
him liable under this section.  Such notice shall be  given  within  one
hundred  and eighty days after termination of such services, except that
if, within such period, the laborer,  servant  or  employee  demands  an
examination of the record of shareholders under paragraph (b) of section
624 (Books and records; right of inspection, prima facie evidence), such
notice may be given within sixty days after he has been given the oppor-

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tunity to examine the record of shareholders.  An action to enforce such
liability  shall  be commenced within ninety days after the return of an
execution unsatisfied against the corporation upon a judgment  recovered
against it for such services.]
  (b) For the purposes of this section, wages or salaries shall mean all
compensation  and  benefits payable by an employer to or for the account
of the employee for personal services rendered by such employee  INCLUD-
ING  ANY CONCOMITANT LIQUIDATED DAMAGES, PENALTIES, INTEREST, ATTORNEY'S
FEES OR COSTS.  These shall specifically include but not be  limited  to
salaries,  overtime,  vacation,  holiday  and  severance  pay;  employer
contributions to or payments of insurance or welfare benefits;  employer
contributions to pension or annuity funds; and any other moneys properly
due or payable for services rendered by such employee.
  (c) A shareholder who has paid more than his pro rata share under this
section shall be entitled to contribution pro rata from the other share-
holders  liable  under  this section with respect to the excess so paid,
over and above his pro rata share, and may sue them jointly or severally
or any number of them to recover the amount due from them.  Such  recov-
ery  may  be  had  in a separate action. As used in this paragraph, "pro
rata" means in proportion to beneficial share interest. Before a  share-
holder  may  claim contribution from other shareholders under this para-
graph, he shall[, unless they have been given notice by a laborer, serv-
ant or employee under paragraph (a),] give them notice in  writing  that
he intends to hold them so liable to him. [Such notice shall be given by
him  within twenty days after the date that notice was given to him by a
laborer, servant or employee under paragraph (a).]
  S 10. Section 609 of the limited liability company law is  amended  by
adding two new subdivisions (c) and (d) to read as follows:
  (C) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
THE  TEN  MEMBERS  WITH  THE  LARGEST  PERCENTAGE OWNERSHIP INTEREST, AS
DETERMINED DURING THE TIME WHICH THE UNPAID SERVICES REFERRED TO IN THIS
SECTION ARE PERFORMED, OF EVERY LIMITED LIABILITY COMPANY, SHALL JOINTLY
AND SEVERALLY BE PERSONALLY LIABLE FOR ALL DEBTS, WAGES OR SALARIES  DUE
AND  OWING  TO  ANY  OF  ITS  LABORERS, SERVANTS OR EMPLOYEES OTHER THAN
CONTRACTORS, FOR SERVICES PERFORMED BY THEM FOR SUCH COMPANY.  A  MEMBER
WHO  HAS  PAID  MORE THAN HIS PRO RATA SHARE UNDER THIS SECTION SHALL BE
ENTITLED TO CONTRIBUTION PRO RATA FROM THE OTHER  MEMBERS  LIABLE  UNDER
THIS  SECTION WITH RESPECT TO THE EXCESS SO PAID, OVER AND ABOVE HIS PRO
RATA SHARE, AND MAY SUE THEM JOINTLY OR SEVERALLY OR ANY NUMBER OF  THEM
TO RECOVER THE AMOUNT DUE FROM THEM. SUCH RECOVERY MAY BE HAD IN A SEPA-
RATE  ACTION.  AS USED IN THIS PARAGRAPH, "PRO RATA" MEANS IN PROPORTION
TO PERCENTAGE OWNERSHIP INTEREST. BEFORE A MEMBER MAY CLAIM CONTRIBUTION
FROM OTHER MEMBERS UNDER THIS SECTION, HE  SHALL  GIVE  THEM  NOTICE  IN
WRITING THAT HE INTENDS TO HOLD THEM SO LIABLE TO HIM.
  (D) FOR THE PURPOSES OF THIS SECTION, WAGES OR SALARIES SHALL MEAN ALL
COMPENSATION  AND  BENEFITS PAYABLE BY AN EMPLOYER TO OR FOR THE ACCOUNT
OF THE EMPLOYEE FOR PERSONAL SERVICES RENDERED BY SUCH  EMPLOYEE.  THESE
SHALL  SPECIFICALLY  INCLUDE  BUT  NOT BE LIMITED TO SALARIES, OVERTIME,
VACATION, HOLIDAY  AND  SEVERANCE  PAY;  EMPLOYER  CONTRIBUTIONS  TO  OR
PAYMENTS  OF  INSURANCE  OR  WELFARE BENEFITS; EMPLOYER CONTRIBUTIONS TO
PENSION OR ANNUITY FUNDS; AND ANY OTHER MONEYS PROPERLY DUE  OR  PAYABLE
FOR SERVICES RENDERED BY SUCH EMPLOYEE, INCLUDING ANY CONCOMITANT LIQUI-
DATED DAMAGES, PENALTIES, INTEREST, ATTORNEYS' FEES OR COSTS.
  S  11. Section 1102 of the limited liability company law is amended by
adding a new subdivision (e) to read as follows:

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  (E) ANY PERSON WHO IS OR SHALL HAVE BEEN A LABORER, SERVANT OR EMPLOY-
EE OF A LIMITED LIABILITY COMPANY OTHER THAN A CONTRACTOR, UPON AT LEAST
FIVE DAYS' WRITTEN DEMAND SHALL HAVE THE RIGHT TO EXAMINE IN  PERSON  OR
BY  AGENT OR ATTORNEY, DURING USUAL BUSINESS HOURS, RECORDS DESCRIBED IN
PARAGRAPH  TWO  OF SUBDIVISION (A) OF THIS SECTION THROUGHOUT THE PERIOD
OF TIME DURING WHICH SUCH LABORER, SERVANT OR EMPLOYEE PROVIDED SERVICES
TO SUCH COMPANY. A COMPANY REQUESTED TO PROVIDE INFORMATION PURSUANT  TO
THIS  PARAGRAPH SHALL MAKE AVAILABLE SUCH RECORDS IN WRITTEN FORM AND IN
ANY OTHER FORMAT IN WHICH SUCH INFORMATION IS MAINTAINED BY THE  COMPANY
AND  SHALL  NOT  BE  REQUIRED  TO  PROVIDE SUCH INFORMATION IN ANY OTHER
FORMAT.  UPON REFUSAL BY THE COMPANY OR BY AN OFFICER OR  AGENT  OF  THE
COMPANY  TO  PERMIT AN INSPECTION OF THE RECORDS DESCRIBED IN THIS PARA-
GRAPH, THE PERSON MAKING THE DEMAND FOR  INSPECTION  MAY  APPLY  TO  THE
SUPREME  COURT  IN THE JUDICIAL DISTRICT WHERE THE OFFICE OF THE COMPANY
IS LOCATED, UPON SUCH NOTICE AS THE  COURT  MAY  DIRECT,  FOR  AN  ORDER
DIRECTING  THE  COMPANY,  ITS  MEMBERS  OR MANAGERS TO SHOW CAUSE WHY AN
ORDER SHOULD NOT BE GRANTED PERMITTING SUCH INSPECTION BY THE APPLICANT.
UPON THE RETURN DAY OF THE ORDER TO SHOW CAUSE, THE COURT SHALL HEAR THE
PARTIES SUMMARILY, BY AFFIDAVIT OR OTHERWISE, AND IF IT APPEARS THAT THE
APPLICANT IS QUALIFIED AND ENTITLED TO SUCH INSPECTION, THE COURT  SHALL
GRANT  AN  ORDER  COMPELLING  SUCH  INSPECTION AND AWARDING SUCH FURTHER
RELIEF AS TO THE COURT MAY SEEM JUST AND PROPER.  IF  THE  APPLICANT  IS
FOUND TO BE QUALIFIED AND ENTITLED TO SUCH INSPECTION, THE COMPANY SHALL
PAY  ALL  REASONABLE ATTORNEY'S FEES AND COSTS OF SAID APPLICANT RELATED
TO THE DEMAND FOR INSPECTION OF THE RECORDS.
  S 12. This act shall take effect on the thirtieth day after  it  shall
have become a law.