S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3757
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2017
                                ___________
 
 Introduced by M. of A. DINOWITZ -- 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:
   § 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.
              

                                                            LBD07525-01-7

 A. 3757                             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.
   § 2. This act shall take effect immediately.