S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7886--A
 
                             I N  S E N A T E
 
                              January 3, 2024
                                ___________
 
 Introduced  by  Sens. HARCKHAM, HINCHEY, RAMOS -- read twice and ordered
   printed, and when printed to be committed to the Committee on Labor --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 AN  ACT  to amend the labor law, in relation to issuing stop-work orders
   for misclassification of employees

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The labor law is amended by adding a new section 45 to read
 as follows:
   §  45.  MISCLASSIFICATION  OF  EMPLOYEES;  STOP-WORK ORDERS. 1. IF THE
 COMMISSIONER  DETERMINES,  AFTER  AN  INVESTIGATION  PURSUANT   TO   THE
 PROVISIONS OF THIS CHAPTER, THAT AN EMPLOYER HAS KNOWINGLY MISCLASSIFIED
 EMPLOYEES  AS  INDEPENDENT CONTRACTORS OR PROVIDED FALSE, INCOMPLETE, OR
 MISLEADING INFORMATION TO AN INSURANCE COMPANY ON THE NUMBER OF  EMPLOY-
 EES  OF  SUCH  EMPLOYER,  THE COMMISSIONER SHALL NOTIFY SUCH EMPLOYER IN
 WRITING OF THEIR INTENTION TO  ISSUE  A  STOP-WORK  ORDER.  SUCH  NOTICE
 SHALL:
   A.  BE  SERVED IN A MANNER CONSISTENT WITH SECTION THREE HUNDRED EIGHT
 OF THE CIVIL PRACTICE LAW AND RULES;
   B. NOTIFY SUCH EMPLOYER OF THEIR RIGHT TO A HEARING;
   C. NOTIFY SUCH EMPLOYER THAT THEY  SHALL  HAVE  SEVENTY-TWO  HOURS  TO
 ADDRESS  THE  VIOLATION OR VIOLATIONS BEFORE THE STOP-WORK ORDER WILL BE
 ISSUED; AND
   D. STATE THE FACTUAL BASIS UPON WHICH THE COMMISSIONER HAS BASED THEIR
 DECISION TO ISSUE A STOP-WORK ORDER AND HOW  SUCH  EMPLOYER  SHALL  COME
 INTO COMPLIANCE.
   2.  A.  AFTER RECEIPT OF SUCH NOTICE, THE EMPLOYER SHALL HAVE SEVENTY-
 TWO HOURS TO COME INTO COMPLIANCE AND TO NOTIFY THE COMMISSIONER OF SUCH
 COMPLIANCE. WITHIN SEVENTY-TWO HOURS AFTER THE EMPLOYER'S OPPORTUNITY TO
 COME INTO COMPLIANCE, IF THE EMPLOYER HAS NOT COME INTO COMPLIANCE,  THE
 COMMISSIONER  SHALL  ISSUE  A STOP-WORK ORDER REQUIRING THE CESSATION OF
 ALL BUSINESS OPERATIONS OF THE EMPLOYER  AT  EVERY  SITE  AT  WHICH  THE
 VIOLATION OCCURS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13916-02-4
 S. 7886--A                          2
 
   B.  A  STOP-WORK ORDER SHALL TAKE EFFECT WHEN SERVED UPON THE EMPLOYER
 OR WHEN SERVED AT THE WORKSITE.
   C.  A  STOP-WORK  ORDER  SHALL REMAIN IN EFFECT UNTIL THE COMMISSIONER
 ISSUES AN ORDER RELEASING THE STOP-WORK  ORDER  UPON  FINDING  THAT  THE
 EMPLOYER HAS COME INTO COMPLIANCE AND HAS PAID ANY PENALTY ASSESSED.
   3.  AN  EMPLOYER  WHO  IS  SUBJECT TO A STOP-WORK ORDER SHALL HAVE THE
 RIGHT TO APPLY TO THE COMMISSIONER, NOT MORE THAN  TEN  DAYS  AFTER  THE
 ORDER IS ISSUED, FOR A HEARING TO CONTEST WHETHER THE EMPLOYER COMMITTED
 THE VIOLATION ON WHICH THE ORDER WAS BASED.
   4.  FAILURE  OR REFUSAL TO COMPLY WITH A STOP-WORK ORDER ISSUED BY THE
 COMMISSIONER SHALL, IN ADDITION TO ANY  OTHER  PENALTIES  AUTHORIZED  BY
 LAW, RESULT IN THE ASSESSMENT OF A PENALTY OF NOT LESS THAN ONE THOUSAND
 DOLLARS AND NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH DAY THE EMPLOY-
 ER IS FOUND NOT TO BE IN COMPLIANCE.
   5.  AN EMPLOYEE AFFECTED BY A STOP-WORK ORDER PURSUANT TO THIS SECTION
 SHALL BE PAID THEIR REGULAR RATE FOR THE PERIOD THE STOP-WORK  ORDER  IS
 IN PLACE OR THE FIRST TEN DAYS THE EMPLOYEE WOULD HAVE BEEN SCHEDULED TO
 WORK  IF  THE STOP-WORK ORDER HAD NOT BEEN ISSUED, WHICHEVER IS LESS, BY
 THE EMPLOYER THAT WAS SERVED THE STOP-WORK ORDER.
   6. STOP-WORK ORDERS AND ANY ADDITIONAL PENALTIES  IMPOSED  UNDER  THIS
 CHAPTER  AGAINST A CORPORATION, PARTNERSHIP OR SOLE PROPRIETORSHIP SHALL
 BE EFFECTIVE AGAINST ANY SUCCESSOR ENTITY THAT HAS ONE OR  MORE  OF  THE
 SAME  PRINCIPALS  OR  OFFICERS  AS  THE CORPORATION, PARTNERSHIP OR SOLE
 PROPRIETORSHIP AGAINST WHICH THE STOP-WORK  ORDER  WAS  ISSUED  AND  ARE
 ENGAGED IN THE SAME OR EQUIVALENT TRADE OR ACTIVITY.
   7.  FOR  THE  PURPOSES  OF  THIS  SECTION, THERE SHALL BE A REBUTTABLE
 PRESUMPTION OF  UNLAWFUL  RETALIATION  IF  AN  EMPLOYER  IN  ANY  MANNER
 DISCRIMINATES,  RETALIATES,  OR  TAKES  ANY  ADVERSE  ACTION AGAINST ANY
 EMPLOYEE WITHIN NINETY DAYS  OF  THE  EMPLOYEE  INITIATING  A  COMPLAINT
 PURSUANT TO THIS ARTICLE.
   8.  THE COMMISSIONER SHALL PROMULGATE ANY RULES AND REGULATIONS NECES-
 SARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.