Bill S.B. 4129
This bill would amend New York labor law regarding clients who engage independent contractors for an amount equal to or greater than $600. For such independent contractors, the bill would require the client to pay compensation earned in accordance with written agreed work terms, but not later than the last day of the month following the month in which the compensation is earned. The agreed work terms would be required to be:
- reduced in writing;
- signed by both the client and the independent contractor;
- kept on file by the client for a period of less than six years; and
- be made available to the Commissioner of Labor (“Commissioner”) upon request.Â
The agreed work terms must include a description of how compensation earned and payable shall be calculated.
Failure to provide such written terms to the Commissioner would give rise to a presumption that the terms that the independent contractor has presented are the agreed terms.
The bill would authorize independent contractors to file with the Commissioner a complaint regarding a violation and the Commissioner may bring any legal action necessary on behalf of any independent contractor.
Civil Penalties: Under the bill, the Commissioner, in addition to other penalties authorized, may assess against the client liquidated damages in the amount of 100% of the total amount of compensation found to be due, unless the client proves a good faith basis for believing that its underpayment of compensation was in compliance with the law.
In any action constituted in the courts in which the independent contractor prevails, the court would be required to allow such independent contractor to recover all reasonable attorney’s fees, prejudgment interest, and unless the client proves a good faith basis for believing that its underpayment of compensation was in compliance with the law, an additional amount as liquidated damages equal to 100% of the total amount of compensation found to be due.
For subsequent violations or egregious or willful violations, an additional civil penalty in the amount equal to double the total amount found to be due may be assessed.
Criminal Penalties: Knowing violations would be punishable as a misdemeanor for the first offense, and upon conviction, a fine not less than $500 nor more than $20,000 or imprisonment for not more than one year.
Subsequent offenses would result in a felony for the second and subsequent offenses occurring within six years of a prior offense, and upon conviction, a fine not less than $500 nor more than $20,000 or imprisonment for not more than one year plus one day, or both fine and imprisonment, for each subsequent offense.
