Bill Text: NY A00542 | 2023-2024 | General Assembly | Introduced

New York Assembly Bill 542

Introduced

Bill Title: Relates to penalties for wilful false statements by employers to avoid payment of unemployment benefits.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Introduced) 2024-07-22 - enacting clause stricken [A00542 Detail]

Download: New_York-2023-A00542-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                           542

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     January 9, 2023
                                       ___________

        Introduced  by M. of A. BURGOS, MITAYNES, SIMON, DARLING, COLTON, GONZA-
          LEZ-ROJAS -- read once and referred to the Committee on Labor

        AN ACT to amend the labor law, in relation to penalties for wilful false
          statements for unemployment purposes

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section 594 of the labor law, as amended by section 16 of
     2  part O of chapter 57 of the laws  of  2013,  subdivisions  1  and  2  as
     3  amended  by  chapter  277  of  the  laws  of 2021, is amended to read as
     4  follows:
     5    § 594. [Reduction and recovery] Recovery of benefits and penalties for
     6  wilful false statement.
     7    (1) A claimant or employer who has wilfully made a false statement  or
     8  representation  to  obtain  or avoid any benefit under the provisions of
     9  this article shall [forfeit benefits for at least the first one but  not
    10  more  than  the first twenty effective weeks following discovery of such
    11  offense for which he or  she  otherwise  would  have  been  entitled  to
    12  receive  benefits.  Such  penalty  shall apply only once with respect to
    13  each such offense.
    14    (2) For the purpose of subdivision four of section five hundred ninety
    15  of this article, the claimant shall be deemed to have received  benefits
    16  for such forfeited effective weeks.
    17    (3)  The  penalty  provided in this section shall not be confined to a
    18  single benefit year but shall no longer apply in whole or in part  after
    19  the  expiration  of  two years from the date of the final determination.
    20  Such two-year period shall be tolled during the time period  a  claimant
    21  has an appeal pending.
    22    (4)] be subject to the penalties set forth in this section.
    23    (2)  A claimant shall refund all moneys received because of such false
    24  statement or representation and pay a civil penalty in an  amount  equal
    25  to  the  greater  of one hundred dollars or fifteen percent of the total

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02055-01-3

        A. 542                              2

     1  overpaid benefits determined pursuant to this section.  An employer  who
     2  wilfully  made  a  false statement or representation to avoid payment of
     3  any benefit under the provisions of   this   article shall pay  a  civil
     4  penalty  in  an  amount  equal  to the greater of one hundred dollars or
     5  fifteen percent  of  the  total  benefit  determined  pursuant  to  this
     6  section.  The  penalties  collected  hereunder shall be deposited in the
     7  fund. The penalties assessed under this subdivision shall apply  and  be
     8  assessed  for  any benefits paid under federal unemployment and extended
     9  unemployment programs administered by the department in the same  manner
    10  as  provided  in this article. The penalties in this section shall be in
    11  addition to any penalties imposed under this chapter  or  any  state  or
    12  federal  criminal statute. No penalties or interest assessed pursuant to
    13  this section may be deducted or withheld from benefits.
    14    [(5)] (3) (a) Upon a determination based upon a willful  false  state-
    15  ment  or  representation  becoming  final  through  exhaustion of appeal
    16  rights or failure  to  exhaust  hearing  rights,  the  commissioner  may
    17  recover  the  amount found to be due by commencing a civil action, or by
    18  filing with the county clerk of the county where  the  claimant  resides
    19  the  final determination of the commissioner or the final decision by an
    20  administrative law judge, the appeal board, or a  court  containing  the
    21  amount found to be due including interest and civil penalty. The commis-
    22  sioner may only make such a filing with the county clerk when:
    23    (i)  The claimant has responded to requests for information prior to a
    24  determination and such requests for information notified the claimant of
    25  his or her rights to a fair hearing as  well  as  the  potential  conse-
    26  quences  of  an investigation and final determination under this section
    27  including the notice required by subparagraph (iii) of paragraph (b)  of
    28  this  subdivision. Additionally if the claimant requested a fair hearing
    29  or appeal subsequent to a determination, that the claimant  was  present
    30  either  in person or through electronic means at such hearing, or subse-
    31  quent appeal from which a final determination was rendered;
    32    (ii) The commissioner has made efforts to collect on such final deter-
    33  mination; and
    34    (iii) The commissioner has sent a notice, in accordance with paragraph
    35  (b) of this subdivision, of intent to docket such final determination by
    36  first class or certified mail, return receipt requested, ten days  prior
    37  to the docketing of such determination.
    38    (b) The notice required in subparagraph (iii) of paragraph (a) of this
    39  subdivision shall include the following:
    40    (i)  That  the  commissioner  intends  to docket a final determination
    41  against such claimant as a judgment;
    42    (ii) The total amount to be docketed; and
    43    (iii) Conspicuous language that reads as  follows:  "Once  entered,  a
    44  judgment  is good and can be used against you for twenty years, and your
    45  money, including a portion of your paycheck and/or bank account, may  be
    46  taken.  Also, a judgment will hurt your credit score and can affect your
    47  ability to rent a home, find a job, or take out a loan."
    48    § 2. Section one of this act shall apply to all false  statements  and
    49  representations  determined  on  or after the effective date of this act
    50  and all forfeited effective days determined prior to such effective date
    51  shall remain in full force and effect for two years from the  expiration
    52  of  the  initial  determination. For purposes of applying such forfeited
    53  benefits, each effective day shall be considered twenty-five percent  of
    54  a claimant's weekly benefit rate.
    55    §  3.  This  act  shall take effect on the sixtieth day after it shall
    56  have become a law; provided, however, that the  amendments  to  subdivi-

        A. 542                              3

     1  sions  1  and  2  of section 594 of the labor law made by section one of
     2  this act shall take effect on the same date and the same manner as chap-
     3  ter 277 of the laws of 2021 takes effect or 30 days  after  the  commis-
     4  sioner  of  labor certifies that the department of labor has an informa-
     5  tion technology  system  capable  of  accommodating  the  amendments  in
     6  chapter 277 of the laws of 2021, whichever occurs earlier.