BILL NUMBER: S7096

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the labor law, in relation to awards to employees who
prevail in actions on kick-back claims

 
PURPOSE:

This bill codifies that if an employee wins a kick-back claim, the
employee will be entitled to the wages, supplements and other things of
value received.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. of the bill amends the labor law by adding subdivision 6 to
ensure that if an employee prevails in the courts over a kick-back
claim, the employee is entitled to all the wages, supplements or other
things of value they received.

Section 2. sets forth the effective date.
              

 
JUSTIFICATION:

In 2022, the New York State Court of Appeals held that there is no
private right of action in New York Labor Law § 198-b, which prohibits
requiring employees to kickback any portion of their pay to any person
in order for the worker to keep their employment. The court's decision
upended the common belief that a worker could bring a private suit under
such circumstances. The New York State Attorney General's Office has
received complaints from workers who were required to make kickback
payments and who-because of the Appeals Court's decision-can only obtain
relief if the Attorney General's office pursues the matter. This amend-
ment is necessary to ensure that workers have the right and the ability
to recover these stolen wages.  It also will bring this wage theft stat-
ute back in line with the other wage theft statutes in the labor law,
such as unpaid wages and illegal deductions, which have an express
private right of action.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPACT TO THE STATE:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.