Last week, the NYS Assembly passed the Securing Wages Enforced Against Theft (“SWEAT”) Act, which provides plaintiffs’ attorneys the ability to secure a lien for the value of an employee’s wage claim, including liquidated damages, based solely on mere allegations of a wage violation. If passed, the law would allow for business and personal liens against owners, the top ten investors, and even managers.
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 an already overburdened and beleaguered hospitality industry.
As you may know, in addition to many other hospitality focused businesses, we represent the Hotel Association of New York City (HANYC). HANYC has sent the attached alert to its members and the attached letter to the Governor. We applaud the hotel industry for taking swift action and urge the restaurant community to do the same. 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.
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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.
