S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1898

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 13, 2015
                               ___________

Introduced  by M. of A. BRENNAN -- read once and referred to the Commit-
  tee on Corporations, Authorities and Commissions

AN ACT to amend the limited liability company law, in  relation  to  the
  liability of members for wages due to laborers, servants or employees

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The limited liability company law is amended  by  adding  a
new section 612 to read as follows:
  S  612.  LIABILITY  OF  MEMBERS FOR WAGES DUE TO LABORERS, SERVANTS OR
EMPLOYEES. (A) NOTWITHSTANDING THE PROVISIONS  OF  SECTION  SIX  HUNDRED
NINE  OF  THIS  ARTICLE,  THE TEN LARGEST MEMBERS OF A LIMITED LIABILITY
COMPANY, AS DETERMINED BY THE FAIR VALUE OF THEIR BENEFICIAL INTEREST AS
OF THE BEGINNING OF THE PERIOD DURING WHICH THE UNPAID SERVICES REFERRED
TO IN THIS  SECTION  ARE  PERFORMED,  SHALL  JOINTLY  AND  SEVERALLY  BE
PERSONALLY  LIABLE FOR ALL DEBTS, WAGES OR SALARIES DUE AND OWING TO ANY
OF ITS LABORERS, SERVANTS  OR  EMPLOYEES  OTHER  THAN  CONTRACTORS,  FOR
SERVICES  PERFORMED  BY  THEM FOR SUCH LIMITED LIABILITY COMPANY. BEFORE
SUCH LABORER, SERVANT OR EMPLOYEE SHALL  CHARGE  SUCH  MEMBER  FOR  SUCH
SERVICES,  HE OR SHE SHALL GIVE NOTICE IN WRITING TO SUCH MEMBER THAT HE
OR SHE INTENDS TO HOLD HIM OR HER LIABLE UNDER THIS SECTION. SUCH NOTICE
SHALL BE GIVEN WITHIN ONE HUNDRED EIGHTY DAYS AFTER TERMINATION OF  SUCH
SERVICES,  EXCEPT  THAT  IF, WITHIN SUCH PERIOD, THE LABORER, SERVANT OR
EMPLOYEE DEMANDS AN EXAMINATION OF THE RECORDS UNDER SUBDIVISION (B)  OF
SECTION ONE THOUSAND ONE HUNDRED TWO OF THIS CHAPTER, SUCH NOTICE MAY BE
GIVEN  WITHIN  SIXTY DAYS AFTER HE OR SHE HAS BEEN GIVEN THE OPPORTUNITY
TO EXAMINE THE RECORDS. AN ACTION TO ENFORCE  SUCH  LIABILITY  SHALL  BE
COMMENCED  WITHIN  NINETY DAYS AFTER THE RETURN OF AN EXECUTION UNSATIS-
FIED AGAINST THE LIMITED LIABILITY COMPANY  UPON  A  JUDGMENT  RECOVERED
AGAINST IT FOR SUCH SERVICES.
  (B) FOR THE PURPOSES OF THIS SECTION, WAGES OR SALARIES SHALL MEAN ALL
COMPENSATION  AND  BENEFITS PAYABLE BY AN EMPLOYER TO OR FOR THE ACCOUNT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02510-01-5
              

A. 1898                             2

OF THE EMPLOYEE FOR PERSONAL SERVICES RENDERED BY SUCH  EMPLOYEE.  THESE
SHALL  SPECIFICALLY INCLUDE BUT NOT LIMITED TO SALARIES, OVERTIME, VACA-
TION, HOLIDAY AND SEVERANCE PAY; EMPLOYER CONTRIBUTIONS TO  OR  PAYMENTS
OF  INSURANCE  OR WELFARE BENEFITS; EMPLOYER CONTRIBUTIONS TO PENSION OR
ANNUITY FUNDS; AND ANY OTHER MONEYS PROPERLY DUE OR PAYABLE FOR SERVICES
RENDERED BY SUCH EMPLOYEE.
  (C) A MEMBER WHO HAS PAID MORE THAN HIS OR HER PRO  RATA  SHARE  UNDER
THIS  SECTION  SHALL BE ENTITLED TO CONTRIBUTION PRO RATA FROM THE OTHER
MEMBERS LIABLE UNDER THIS SECTION WITH RESPECT TO THE  EXCESS  SO  PAID,
OVER  AND  ABOVE  HIS OR HER PRO RATA SHARE, AND MAY SUE THEM JOINTLY OR
SEVERALLY OR ANY NUMBER OF THEM TO RECOVER THE  AMOUNT  DUE  FROM  THEM.
SUCH  RECOVERY MAY BE HAD IN A SEPARATE ACTION. AS USED IN THIS SUBDIVI-
SION, "PRO RATA" MEANS  IN  PROPORTION  TO  BENEFICIAL  SHARE  INTEREST.
BEFORE  A  MEMBER  MAY  CLAIM CONTRIBUTION FROM OTHER MEMBERS UNDER THIS
SUBDIVISION, SUCH MEMBER SHALL, UNLESS HE OR SHE HAS BEEN  GIVEN  NOTICE
BY A LABORER, SERVANT OR EMPLOYEE UNDER SUBDIVISION (A) OF THIS SECTION,
GIVE  THEM  NOTICE  IN  WRITING  THAT  HE OR SHE INTENDS TO HOLD THEM SO
LIABLE TO HIM OR HER. SUCH NOTICE SHALL BE GIVEN BY HIM  OR  HER  WITHIN
TWENTY  DAYS  AFTER  THE  DATE  THAT NOTICE WAS GIVEN TO HIM OR HER BY A
LABORER, SERVANT OR EMPLOYEE UNDER SUBDIVISION (A) OF THIS SECTION.
  S 2. This act shall take effect immediately.