New York lawmakers introduce sweeping payroll legislation
ALBANY, N.Y. (WENY) -- New York lawmakers have introduced sweeping legislation to address concerns with the payroll industry, and respond to the crisis caused by MyPayrollHR.
The payroll company recently shut down, leaving thousands in the Empire State without pay.
New bills will hold companies criminally liable for misappropriating payroll funds. Employees who miss a paycheck due to wrongful acts of payroll processing will also be able to hold that company liable for compensation, up to three times the value of the paycheck.
The proposed reforms are currently in Senate committee.
- Protections Against Misappropriating Payroll: This bill, sponsored by Senator David Carlucci, establishes criminal penalties for intentionally misappropriating payroll and payroll tax funds. This bill also allows companies to be held criminally liable for these crimes.
- Payroll Company Accountability: This bill, sponsored by Senator Kevin Thomas, allows employees who miss a paycheck due to the wrongful acts of a payroll processing company to hold that company liable for compensation up to three times the value of the paycheck.
- Tax Credit for Lost Wages: This bill, sponsored by Senator Brian Benjamin, provides a refundable personal income tax credit of up to $250 for losses and penalties incurred due to the loss of a paycheck by an employee due to the actions of a payroll service company.
- Payroll Deductions Accountability: This bill, sponsored by Senator Jessica Ramos, clarifies that deductions cannot be made from employee accounts if they do not constitute overpayment or are dispersed at an improper time. This prevents employees from being affected in the situation where a company makes a clerical error harmful to the company but the employee receives wages they were rightfully owed.
- Insurance Study Bill: This bill, sponsored by Senator Neil Breslin, requires the Superintendent of DFS in consultation with the Commissioner of the Dept. of Taxation and Finance to study the payroll services industry and make recommendations to the legislature and governor.