Assembly Bill A3478

2021-2022 Legislative Session

Relates to the liability of payroll processing companies

download bill text pdf

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Archive: Last Bill Status - In Assembly 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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2021-A3478 (ACTIVE) - Details

See Senate Version of this Bill:
S761
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Add §11-108, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2019-2020: S6727
2023-2024: A3791, S533

2021-A3478 (ACTIVE) - Summary

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.

2021-A3478 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3478
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2021
                                ___________
 
 Introduced  by  M. of A. FAHY -- read once and referred to the Committee
   on Judiciary
 
 AN ACT to amend the general obligations law, in relation to the  liabil-
   ity of payroll processing companies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The general obligations law is  amended  by  adding  a  new
 section 11-108 to read as follows:
   § 11-108. LIABILITY  OF  PAYROLL  PROCESSING  COMPANY.    1.  FOR  THE
 PURPOSES OF THIS SECTION, "PAYROLL PROCESSING COMPANY" MEANS A PERSON OR
 BUSINESS ENTITY UNDER CONTRACT TO  AN  EMPLOYER  THAT:  (A)  CALCULATES,
 PROCESSES  AND  PRODUCES WAGE PAYMENTS TO THE EMPLOYER'S EMPLOYEES UNDER
 SUCH EMPLOYER'S FEDERAL EMPLOYER IDENTIFICATION  NUMBER;  (B)  WITHHOLDS
 AND  REMITS APPLICABLE TAXES TO GOVERNMENT AGENCIES USING THE EMPLOYER'S
 FEDERAL EMPLOYMENT IDENTIFICATION NUMBER; (C) ISSUES FEDERAL  AND  STATE
 INCOME  TAX  FORMS  TO  THE  EMPLOYER'S  EMPLOYEES USING SUCH EMPLOYER'S
 FEDERAL EMPLOYER IDENTIFICATION NUMBER; AND (D) CONDITIONS WAGE PAYMENTS
 TO THE EMPLOYER'S EMPLOYEES ON THE ADVANCE RECEIPT OF  FUNDS  FROM  SUCH
 EMPLOYER  TO  FULLY  COVER  SUCH  WAGE  PAYMENTS.  A PERSON ACTING AS AN
 EMPLOYER UNDER 26 U.S.C. 3401(D)(1) THAT OTHERWISE MEETS THE  DEFINITION
 OF  A PAYROLL PROCESSING COMPANY SHALL NOT BE CONSIDERED A PAYROLL PROC-
 ESSING COMPANY IF THE PERSON ACTING AS AN EMPLOYER AND THE EMPLOYEE  ARE
 SUBJECT  TO  A  COLLECTIVE  BARGAINING  AGREEMENT  AND  SUCH  COLLECTIVE
 BARGAINING AGREEMENT EXPRESSLY PROVIDES FOR THE RECOVERY OF UNPAID, LOST
 OR STOLEN WAGES.
   2. NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW  TO  THE  CONTRARY,  A
 PAYROLL  PROCESSING  COMPANY  THAT  INTENTIONALLY AND WITHOUT GOOD CAUSE
 PREVENTS THE REMITTANCE OF TAXES OR PAYMENT OF  WAGES  PURSUANT  TO  THE
 CONTRACT WITH THE EMPLOYER SHALL BE LIABLE TO AN EMPLOYEE OF THE EMPLOY-
 ER THAT FAILED TO RECEIVE AN OWED PAYMENT WITHIN ONE BUSINESS DAY OF THE
 DATE  SUCH PAYMENT WAS EXPECTED FOR AN AMOUNT UP TO THREE TIMES THE OWED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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