In the summer of 2019, the New York legislature passed a bill allowing an employer’s current and former employees, and the New York State Department of Labor, to obtain liens on an employer’s personal and real property when there is an alleged wage claim. Governor Cuomo vetoed the bill on December 31, 2019, due to concerns over the constitutionality over the law, including whether it provided adequate due process.
New York employers opposed the bill for a number of reasons, including the allowance of liens based solely on allegations rather than a finding of liability. While employers may breathe a sigh of relief for now, Cuomo indicates that he intends to propose replacement legislation in 2020 that permits the use of “any and all assets, even personal assets, of the bad actor” to satisfy a judgment of a victim of wage theft.
If you have any questions about how this impacts you or your business, please contact: