Assemblymember Phil Steck (D-Colonie) applauded Governor Cuomo’s proposal to expand wage theft protections, which he noted is in furtherance of prior legislation he introduced and passed. Laid out during the governor’s State of the State addresses, the measure would hold out-of-state limited liability corporations (LLCs) accountable for unpaid wages, expanding on earlier legislation authored by Steck (Ch. 421 of the Laws of 2015). Steck supports extending the rule to foreign LLC’s and had introduced legislation last session (A.8712) to do just that.

Courts previously ruled that the 10 largest shareholders of only corporations formed under New York law could face judgment for failing to pay back wages if the company failed. Steck’s 2015 bill, which received unanimous support in both legislative chambers, ensured that out-of-state and foreign corporations are held to the same standard as companies based in New York.

With respect to LLCs, in the last three years alone, there were over 5,000 workers who were unable to collect a total of $67.8 million in unpaid wages from out-of-state LLCs. By ensuring all LLCs are accountable in New York State, the proposed measure will grant more workers protection from unfair business practices and help address outstanding back wages.

“This proposal will make sure that all businesses, regardless of which state or country they’re based in, pay New Yorkers their full and just wages even if the company fails,” said Steck. “Given the past legislative history, I am confident that my colleagues will join with the Governor in preventing foreign and out-of-state business entities from cheating our workers out of their earned wages.”