NY State Senate Bill 2015-S7526

Senate Bill S7526

2015-2016 Legislative Session

Relates to liability of members for wages due to laborers, servants or employees by domestic and foreign limited liability companies

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 06, 2016	referred to corporations, authorities and commissions

2015-S7526 (ACTIVE) - Details

See Assembly Version of this Bill:: A8712
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Limited Liability Company Law
Laws Affected:: Amd §609, Lim Lil L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5966, A5131
2019-2020: S2734, A453

2015-S7526 (ACTIVE) - Summary

Relates to liability of members for wages due to laborers, servants or employees by domestic and foreign limited liability companies.

2015-S7526 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7526

 TITLE OF BILL :  An act to amend the limited liability company law,
in relation to liability of members for wages due to laborers,
servants or employees by domestic and foreign limited liability
companies

 PURPOSE :

This legislation makes the ten people with the largest ownership
interest in a foreign limited liability company liable for unpaid
wages.

 SUMMARY OF PROVISIONS :

Section 1 - Subdivision (c) of section 609 of the limited liability
company law to make clear that every domestic and foreign limited
liability operating in the state shall be liable for unpaid wages to
employees.

Section 2 - Effective Date - 60th day after it shall become law.

 EXISTING LAW :

Under the existing law, section 102 of the limited liability company
law, defines a limited liability company to mean "unless the context

otherwise requires, an unincorporated organization of one or more
persons having limited liability for the contractual obligations and
other liabilities of the business (except as authorized or provided in
section six hundred nine or twelve hundred five of this chapter),
other than a partnership or trust, formed and existing under this
chapter and the laws of this state." To ensure that the context
section 609 of the limited liability company law is clear, the statute
is amended to clearly delineate that both foreign and domestic limited
liability companies are included in the provisions related to
liability for unpaid wages.

 JUSTIFICATION :

Limited Liability Company Law § 609 imposes liability for unpaid wages
on the members with the 10 largest ownership interests after a
judgment against the corporation has been returned unsatisfied. This
bill ensures that all foreign limited liability companies employing
workers in New York State are treated the same in the eyes of the law
as domestic limited liability companies.

 LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
The 60th date after it shall become law.

2015-S7526 (ACTIVE) - Bill Text download pdf

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

                                  7526

                            I N  S E N A T E

                               May 6, 2016
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to  amend  the  limited  liability  company law, in relation to
  liability of members for wages due to laborers, servants or  employees
  by domestic and foreign limited liability companies

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

  Section 1. Subdivision (c) of section 609  of  the  limited  liability
company  law, as added by chapter 537 of the laws of 2014, is amended to
read as follows:
  (c) Notwithstanding the provisions of subdivisions (a) and (b) of this
section, the ten members with the largest percentage ownership interest,
as determined as of the beginning of the period during which the  unpaid
services  referred  to  in this section are performed, of every DOMESTIC
limited liability company, OR OF ANY FOREIGN LIMITED LIABILITY  COMPANY,
WHEN  THE UNPAID SERVICES WERE PERFORMED IN THE STATE, shall jointly and
severally be personally liable for all debts, wages or salaries due  and
owing  to  any  of  its  laborers,  servants  or employees, for services
performed by them for such limited liability company. Before such labor-
er, servant or employee shall charge such member for such  services,  he
or  she  shall  give  notice  in  writing  to such member that he or she
intends to hold such member liable under this section. Such notice shall
be given within one  hundred  eighty  days  after  termination  of  such
services.  An action to enforce such liability shall be commenced within
ninety days after the return of an  execution  unsatisfied  against  the
limited  liability company upon a judgment recovered against it for such
services. A member who has paid more than his  or  her  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 or her 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 separate action. As used in this  subdivi-
sion,  "pro  rata" means in proportion to percentage ownership interest.

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

                                                           LBD13419-01-5

S. 7526                             2

Before a member may claim contribution from  other  members  under  this
section,  he  or  she  shall  give them notice in writing that he or she
intends to hold them so liable to him or her.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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