STATE OF NEW YORK ________________________________________________________________________

6727

2019-2020 Regular Sessions

IN SENATE

September 18, 2019 ___________

Introduced by Sen. THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

AN ACT to amend the general obligations law, in relation to the liabil- ity of payroll processing companies

The People of the State of New York, represented in Senate and Assem- bly, do enact as follows:

1 Section 1. The general obligations law is amended by adding a new 2 section 11-108 to read as follows: 3 § 11-108. Liability of payroll processing company. Notwithstanding 4 any other provision of law to the contrary, any person under contract to 5 an employer to distribute the employer's payroll that intentionally 6 prevents the distribution of such payroll pursuant to the contract with 7 the employer shall be liable to an employee of the employer that failed 8 to receive an expected payment for an amount up to three times the 9 expected payment. Liability under this section is in addition to any 10 other applicable penalties and causes of action. An action to recover 11 damages under this section may be maintained as a class action, notwith- 12 standing subdivision b of section nine hundred one of the civil practice 13 law and rules. 14 § 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13797-01-9