State can protect workers and honest business from wage theft (NY)

June 07, 2019 07:00 AM
Richard Blum

This is not an isolated problem but one that affects low-income workers throughout New York. Wage theft also undermines honest businesses that are forced to compete with rivals who cut corners and cheat their workers. The bad apples game the system to deprive our clients of their legal wages and businesses of an even playing field.

It is estimated that each year workers in New York are unlawfully underpaid by about $1 billion. These violations disproportionately affect female, black, Hispanic and immigrant workers and those with limited educations.

A proposal in the Legislature would correct this. The bill, Securing Wages Earned Against Theft, or SWEAT (A.486/S.2844), will provide workers with legal tools to ensure that their employers will pay them what a court orders. It will also help honest businesses compete.

The legislation would:

* Allow all workers to put a temporary lien on the property of an employer that fails to pay wages, similar to the liens that protect workers in Wisconsin and Maryland.

* Make it easier for workers to attach an employer’s assets at the start of litigation before the property can be sold or transferred, using the standard currently employed in other states, including Connecticut.

* Improve the procedures for holding the largest shareholders of privately held corporations and members of limited liability companies personally liable for wage theft. Current law allows for them to be held accountable, but only if workers employ obscure, difficult procedures.

(Read More)