Last night, the NYS Senate passed S.7539, the new wage theft legislation. This harmful legislation will:

• subject your business, individual owners/shareholders, and even your employees who are named as defendants in lawsuits, to pre-judgment writs of attachment to their personal assets and property;
• create personal liability for you and the top shareholders of your business, depriving them of the limited liability provided to corporate shareholders in every other state in the country;
• encourage an onslaught of new litigation that will give the plaintiffs’ bar significantly more leverage into forcing you into large settlements for mere technical violations of the employment laws; and
• exempting these lawyers and their clients from paying you any damages when their claims are ultimately disproved.

New York should not deviate from its existing law strictly limiting the imposition of pre-judgment liens because it is already an extremely powerful, even draconian, remedy. The proponents of this bill have not offered any evidence which would justify its need at this time. New York businesses are struggling to survive and this bill, should it become law, will only accelerate their downfall. New York businesses need relief, not more regulations.

EGS has joined with the NYS Restaurant Association, the Hotel Association of NYC and other business groups in opposing this bill. 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.

Please follow this link to tell your legislators, this is wrong, unnecessary and dangerous to New York businesses.

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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.