Skip to main content

One to Keep An Eye On: S2844B (New York)


As with many employment and labor law related cases (and bills) being litigated around the country, there are always a few that stand out.  This is one to keep an eye on.


Recently, the New York State Legislature passed S2844B, a bill that would enable an employer's current or former employee or the New York State Department of Labor to place a lien on an employer's interest in real or personal property for the face value of a wage claim (plus liquidated damages.)  In New York, a wage claim is defined as a claim for a violation of New York Labor Law Sections 170 (hours for labor for domestic workers), 193 (deductions from wages), 196-d (gratuities), or 652 and 673 (minimum wages), as well as the related regulations and wage orders promulgated by the labor commissioner.  A wage claim also includes a claim for wages due to an employee pursuant to an employment contract that were unpaid in violation of that employment contract as well as a claim for a violation of the Fair Labor Standards Act.

While the lien may be filed at any time, it may not be filed later than three years following the end of the employee's employment giving rise to the wage claim.  As well, the lien may not be placed on an employer's bank account or goods.

However, despite these restrictions, many employers in the state have expressed concern about the reach of the legislation.  As some have argued, if New York Governor Andrew Cuomo signs S2844B into law, it could potentially freeze credit needed by small employers (as a lien might have some banks deciding not to issue credit to these small employers.)  As well, the argument has been made that employees would have unfair leverage, with the ability to file these liens against employers.  It will be interesting to see whether Governor Cuomo puts pen to paper here.  Stay tuned.


For a copy of S2844B:  https://legislation.nysenate.gov/pdf/bills/2019/S2844B

Comments

Post a Comment

Popular posts from this blog

NLRB: Discussion Among Employees About Tip Pooling is Protected Concerted Activity

  This Advice Memorandum from the National Labor Relations Board’s Associate General Counsel, Jayme Sophir, addressed whether employees which discussed and complained about tip pooling at work constituted protected concerted activity. In relevant part, an employer in New York operated a chain of steakhouses.  While tip pooling was in place at these steakhouses, some of the employees objected to it on the grounds that it was not transparent and improperly divided tips among the workers.  Employees were told not to complain or talk to each other about the tip pool and were told that doing so would endanger their jobs.  Despite the employer later attempting to provide some clarity as to how the tips were being divided, rancor still existed among some employees.  At one point, the employees were told by a general manager that some employees that had been talking about the tip pool were “cleared out” and the employer would continue to do so. In the Advice Memorandum,...
Post a Comment
Read more

Breaking: Labor Secretary Rumored to Be Leaving Administration

A few hours ago, word leaked out that Labor Secretary Marty Walsh (“Walsh”) is in the midst of negotiations to head up the NHL Players Union and leave his position at the Labor Department. Walsh, who has served as the sole Labor Secretary under President Biden, has taken part in a labor renaissance of sorts as support for organized labor has increased during his term as Labor Secretary (although the number of workers that have joined a union over the past two years has not grown as mush as some expected.)  He has also overseen the ongoing negotiations with rail workers over a new contract, although that matter is still on shaky ground and playing out as we speak. As for who might step into the vacant Labor Secretary role, there are already rumblings that President Biden should nominate Deputy Labor Secretary Julie Su (a strong labor advocate) or even a progressive like Senator Bernie Sanders.  Until Walsh officially gives his notice, however, I would expect some/many potential...
Post a Comment
Read more

Distance in a Non-Compete Agreement Measured "As the Crow Flies"

Ginn v. Stonecreek Dental Care - Court of Appeals, Twelfth Appellate District of Ohio Facts :  Dr. R. Douglas Martin ("Martin") sold his dental practice to an employee who worked there, Dr. David Ginn ("Ginn").  In doing so, Martin and Ginn signed a contract for the sale which contained a non-compete provision that prohibited Martin from engaging in business "within 30 miles" of the practice for five years starting from October 2010.  While Martin initially stayed on and worked with Ginn for a period, the relationship subsequently deteriorated between the two and Martin went to work for another dental office.  The new dental office was less than 30 miles away when measuring the distance in a straight line.  However, when driving between the offices, the distance was more than 30 miles. Ginn filed a claim against Martin on the grounds that Martin breached the non-compete.   At the trial court level, the court found that "within 30 miles"...
Post a Comment
Read more