New York

New York Looking To Pass Liens Against Employers Law For Unpaid Wages

Hey Compliance Warriors!

This could have big implications for companies and executives if it’s passed. Read on…

Article via: manatt.com

“The New York State Legislature has passed a bill that, if signed into law, would allow current and former employees to obtain a lien against an employer’s real or personal property based merely on an allegation of underpayment of wages. Such an “employee lien” – which could be imposed not only against corporate entities, but personally against individuals, including managers, human resources personnel, and supervisors – would be in the amount of the perceived value of the employee’s wage claim, plus liquidated damages. The bill broadly defines what constitutes a “wage claim” for purposes of obtaining a lien, and encompasses, among other claims, any alleged violation of New York Labor Law §§ 652 or 673 (minimum wage), § 193 (improper deductions), and § 196-d (gratuities), as well as claims under §§ 206 and 207 of the Fair Labor Standards Act (minimum wage and overtime) and claims for breach of an employment contract where wages were allegedly unpaid under the contract. This potential new legislation dramatically increases the already-high stakes of wage and hour violations and emphasizes the importance of strict compliance with applicable wage and hour laws.”

For more information: https://www.manatt.com/Insights/Newsletters/Employment-Law-Tip-of-the-Month/Liens-Against-Companies-and-Executives-for-Unpaid


Lisa Smith is CEO of Andere Corporation and Chief Content Developer at HelpDeskSuites.com. Follow her on Twitter, connect with her on LinkedIn, listen to her Small Business Spoonfuls Podcast, and find more in her Compliance Warriors Facebook Group.

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