New York S05467 amends the general obligations law to hold payroll processing companies liable for up to three times the amount of unpaid wages if.
New York S05467 amends the general obligations law by adding a new section that establishes liability for payroll processing companies. These companies can be held liable for up to three times the amount of unpaid wages if they intentionally and wrongfully prevent the distribution of payroll. The bill also allows employees to maintain a class action to recover damages. This liability applies unless the payroll processing company has good cause, such as reasonable efforts to verify potentially fraudulent activity or compliance with state and federal laws.
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