The Securing Wages Enforced Against Theft (“SWEAT”) Act is starting to gain traction in the State legislature again. This harmful legislation would allow for employees who believe they are victims of wage theft to take out a personal lien on business owners, managers, and other shareholders before proving their case. If passed, we would likely see a dramatic increase in the amount of litigation in this space and this bill would severely hamper businesses from being able to operate.

The proposed law requires no due process- again, the bill makes the lien available based upon mere allegations. The absence of due process combined with the ambition of the NY plaintiffs’ bar would be a devastating blow to all NY businesses, and especially, to an already overburdened and beleaguered hospitality industry.

If you have not already done so, we urge you to contact the industry groups to which you belong and ask what they are doing, and what you can do to help, to defeat this proposed legislation. 

EGS has joined with the NYS Restaurant Association, the Hotel Association of NYC and other business groups in opposing this bill in the past and we are doing so again. We are asking you to take part in the grassroots campaign organized by the NYSRA (your business does not need to be a restaurant) so you can let your elected officials know how problematic this is—click the link below to have your voice heard:

Take Action Now

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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.