New Legislation Affecting Employer Wage Liability

Legislation is currently pending before the New York State Senate and the New York State Assembly, that if passed into law, will have sweeping, potentially harmful consequences to employers with respect to employee wage claims. The proposed legislation (SB2762/AB766), which has already passed the Assembly, would allow employees who claim they are owed wages to file liens against their employers’ personal and business assets in a manner similar to a mechanic’s lien or a tradesperson’s lien. Additionally, due to the wording of the legislation, employees would be allowed file such liens against the personal assets of certain non-owner managers of a business.
 
Under the new legislation, employees who believe, rightly or wrongly, that they are owed wages will be allowed to file these “Employee’s Liens” without first having to take legal action against the employer or obtain a money judgment.
 
A version of this legislation was introduced in 2019 and passed both the Senate and Assembly before being vetoed by then-Governor Cuomo. Given the legislation’s previous passage, it appears likely that it will find it back on the governor’s desk.
 
If you believe that you or your business will be adversely affected by this new legislation and do not support its passage, it is important to make your voice heard to your lawmakers in Albany. If you have any questions about this legislation or how it might affect your business, or if you would like assistance and guidance as to how to most effectively address your concerns, contact us to discuss how you can be best protected if this law is passed.


If you have any questions, please do not hesitate to give us a call to discuss 1(718)402-2240.