S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10610
 
                           I N  A S S E M B L Y
 
                               June 20, 2024
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Zebrowski)
   -- read once and referred to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to penalties for frequency of
   pay violations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The opening paragraph of subparagraph (ii) of paragraph a
 of subdivision 1 of section 191 of the labor law, as amended by  chapter
 168 of the laws of 1993, is amended to read as follows:
   The  commissioner  may  authorize  an employer [which has in the three
 years preceding the application employed an average of one  thousand  or
 more persons in this state or has for one year preceding the application
 employed  an  average  of one thousand or more persons in this state and
 has for three years preceding the application  employed  an  average  of
 three thousand or more persons outside the state] to pay less frequently
 than  weekly  but  not less frequently than semi-monthly if the employer
 furnishes satisfactory proof to the commissioner of its continuing abil-
 ity to meet its payroll responsibilities. In making  this  determination
 the commissioner shall consider the following:
   §  2.  Subdivision  1-a of section 198 of the labor law, as amended by
 chapter 362 of the laws of 2015, is amended to read as follows:
   1-a. A. On behalf of any employee paid less than the wage to which  he
 or she is entitled under the provisions of this article, the commission-
 er  may  bring  any  legal  action  necessary,  including administrative
 action, to collect such claim and as part of such legal action, in addi-
 tion to any other remedies and penalties otherwise available under  this
 article,  the  commissioner  shall  assess against the employer the full
 amount of any such underpayment, and an additional amount as  liquidated
 damages,  unless  the  employer  proves a good faith basis for believing
 that its underpayment of wages was in compliance with  the  law.  Liqui-
 dated  damages  shall  be calculated by the commissioner as no more than
 one hundred percent of the total amount of wages found to be due, except
 such liquidated damages may be up to three hundred percent of the  total
 amount  of  the wages found to be due for a willful violation of section
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15803-01-4
 A. 10610                            2
 
 one hundred ninety-four of this article. NOTWITHSTANDING THE  PROVISIONS
 OF  THIS  SUBDIVISION,  LIQUIDATED  DAMAGES  SHALL  NOT BE APPLICABLE TO
 VIOLATIONS OF PARAGRAPH A OF SUBDIVISION  ONE  OF  SECTION  ONE  HUNDRED
 NINETY-ONE OF THIS ARTICLE WHERE THE EMPLOYER PAID THE EMPLOYEE WAGES ON
 A  REGULAR PAYDAY, NO LESS FREQUENTLY THAN SEMI-MONTHLY. SUCH VIOLATIONS
 SHALL BE SUBJECT TO DAMAGES AS FOLLOWS:
   (I) NO MORE THAN ONE HUNDRED PERCENT OF THE LOST INTEREST FOUND TO  BE
 DUE  FOR  THE DELAYED PAYMENT OF WAGES CALCULATED USING A DAILY INTEREST
 RATE FOR EACH DAY PAYMENT IS LATE BASED ON THE ANNUAL RATE  OF  INTEREST
 THEN  IN  EFFECT,  AS  PRESCRIBED  BY  THE  SUPERINTENDENT  OF FINANCIAL
 SERVICES PURSUANT TO SECTION FOURTEEN-A  OF  THE  BANKING  LAW  FOR  THE
 EMPLOYER'S FIRST VIOLATION; OR
   (II)  THREE  HUNDRED  PERCENT OF THE LOST INTEREST FOUND TO BE DUE FOR
 THE DELAYED PAYMENT OF WAGES CALCULATED USING A DAILY INTEREST RATE  FOR
 EACH  DAY  PAYMENT  IS LATE BASED ON THE ANNUAL RATE OF INTEREST THEN IN
 EFFECT, AS PRESCRIBED BY THE SUPERINTENDENT OF FINANCIAL SERVICES PURSU-
 ANT TO SECTION FOURTEEN-A OF THE BANKING LAW FOR ANY EMPLOYER SUBJECT TO
 A PREVIOUS ORDER ISSUED UNDER SECTION TWO HUNDRED NINETEEN OF THIS CHAP-
 TER FOR VIOLATION OF PARAGRAPH A  OF  SUBDIVISION  ONE  OF  SECTION  ONE
 HUNDRED  NINETY-ONE OF THIS ARTICLE FOR WHICH NO PROCEEDING FOR ADMINIS-
 TRATIVE OR JUDICIAL REVIEW AS PROVIDED IN THIS CHAPTER  IS  PENDING  AND
 THE TIME FOR INITIATION OF SUCH PROCEEDING SHALL HAVE EXPIRED AND RELAT-
 ING TO EMPLOYEES PERFORMING THE SAME WORK; OR
   (III)  FOR  A VIOLATION OCCURRING AFTER THE EFFECTIVE DATE, LIQUIDATED
 DAMAGES EQUAL TO TWENTY-FIVE PERCENT OF THE TOTAL AMOUNT  OF  THE  WAGES
 FOUND  TO  BE  PAID  IN  VIOLATION  OF PARAGRAPH A OF SUBDIVISION ONE OF
 SECTION ONE HUNDRED NINETY-ONE OF THIS ARTICLE IF  THE  EMPLOYER,  AFTER
 THE  EFFECTIVE  DATE,  HAS BEEN ISSUED TWO OR MORE SEPARATE ORDERS UNDER
 SECTION TWO HUNDRED NINETEEN OF ARTICLE SEVEN FOR  VIOLATIONS  OF  PARA-
 GRAPH  A  OF  SUBDIVISION  ONE OF SECTION ONE HUNDRED NINETY-ONE OF THIS
 ARTICLE FOR WHICH NO PROCEEDING FOR ADMINISTRATIVE OR JUDICIAL REVIEW AS
 PROVIDED IN THIS CHAPTER IS PENDING AND THE TIME FOR INITIATION OF  SUCH
 PROCEEDING  SHALL  HAVE EXPIRED AND RELATING TO EMPLOYEES PERFORMING THE
 SAME WORK.
   B. FOR PURPOSES OF  THIS  SUBDIVISION,  AN  ORDER  UNDER  SECTION  TWO
 HUNDRED NINETEEN OF THIS CHAPTER SHALL CONSTITUTE A SINGLE ORDER REGARD-
 LESS  OF  THE NUMBER OF EMPLOYEES OR THE TIME PERIOD THAT WAS SUBJECT TO
 SUCH ORDER.
   C. In any action instituted in the courts upon  a  wage  claim  by  an
 employee  or  the commissioner in which the employee prevails, the court
 shall allow such employee to recover the full amount  of  any  underpay-
 ment,  all  reasonable attorney's fees, prejudgment interest as required
 under the civil practice law and rules, and, unless the employer  proves
 a  good  faith  basis  to  believe that its underpayment of wages was in
 compliance with the law, an  additional  amount  as  liquidated  damages
 equal  to  one hundred percent of the total amount of the wages found to
 be due, except such liquidated  damages  may  be  up  to  three  hundred
 percent  of  the total amount of the wages found to be due for a willful
 violation of section one hundred ninety-four of this article.
   § 3. This act shall take effect immediately and shall apply to  causes
 of action pending or commenced on or after such effective date.