New Law Protects NY Workers from Wage Theft by LLC Companies

The Power of the Pen

Legislation (S.2734/A.453) has been signed amending the Limited Liability Company Law to protect employees and the wages owed to them. This bill clarifies the law to make the ten members with the largest ownership interest of any Limited Liability Company, foreign or domestic, responsible for unpaid wages to employees. This legislation was proposed by  Governor Andrew Cuomo as part of his 2017 State of the State address.

"We have zero tolerance for any company that exploits workers and attempts to steal the hard-earned wages of its employees," Governor Cuomo said. "This measure closes a loophole that for too long allowed certain companies to hide behind their complicated corporate structure to avoid wage theft laws currently on the books."

Senator James Skoufis said, "New York State's hard-working employees will no longer be exploited by certain companies that intend to skirt their responsibilities to pay wages that have been rightfully earned. By ensuring all LLCs are held to the same standards, we've taken a significant step in protecting New York's employees and I thank the Governor for signing this into law."

Assembly Member Phil Steck said, "Businesses have an obligation to pay their employees for the work they perform and unscrupulous companies scamming New Yorkers won't be tolerated. New Yorkers work hard for their money, and this law will ensure they are paid every dime they've earned. That is why I was proud to sponsor this legislation in the Assembly."

New York State continues to take action so that all workers are treated fairly and receive all of the wages they are entitled. Since Governor Cuomo took office in 2011, the State has recovered nearly $300 million in stolen wages and returned them to more than 280,000 workers.

This law will be effective in 60 days.

Source: The Office of Governor Andrew M. Cuomo