Bill Text: NY A05501 | 2015-2016 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to securing payment of wages for work already performed; creates a lien remedy for all employees; provides grounds for attachment; relates to procedures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft; relates to rights for victims of wage theft to hold the ten members with the largest ownership interests in a company personally liable for wage theft.
Spectrum: Partisan Bill (Democrat 32-0)
Status: (Engrossed - Dead) 2016-06-14 - amended on third reading 5501d [A05501 Detail]
Download: New_York-2015-A05501-Amended.html
Bill Title: Relates to securing payment of wages for work already performed; creates a lien remedy for all employees; provides grounds for attachment; relates to procedures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft; relates to rights for victims of wage theft to hold the ten members with the largest ownership interests in a company personally liable for wage theft.
Spectrum: Partisan Bill (Democrat 32-0)
Status: (Engrossed - Dead) 2016-06-14 - amended on third reading 5501d [A05501 Detail]
Download: New_York-2015-A05501-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5501--A
2015-2016 Regular Sessions
I N A S S E M B L Y
February 24, 2015
___________
Introduced by M. of A. ROSENTHAL, MOSLEY, GOTTFRIED, OTIS, MOYA,
RUSSELL, WEPRIN, HOOPER, ORTIZ, PERRY, DAVILA, CLARK, DINOWITZ, SIMON,
ROBERTS, MILLER -- Multi-Sponsored by -- M. of A. BRENNAN, BROOK-KRAS-
NY, COOK, HEVESI, LENTOL, RIVERA, SKARTADOS -- read once and referred
to the Committee on Judiciary -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the lien law, in relation to employee liens; to amend
the labor law, in relation to employee complaints; to amend the civil
practice law and rules, in relation to grounds for attachment; to
amend the business corporation law, in relation to streamlining proce-
dures where employees may hold shareholders of non-publicly traded
corporations personally liable for wage theft; and to amend the limit-
ed liability company law, in relation to creating a right for victims
of wage theft to hold the ten members with the largest ownership
interests in a company personally liable for wage theft
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 2 of the lien law is amended by adding three new
2 subdivisions 21, 22 and 23 to read as follows:
3 21. EMPLOYEE. THE TERM "EMPLOYEE", WHEN USED IN THIS CHAPTER, SHALL
4 HAVE THE SAME MEANING AS "EMPLOYEE" PURSUANT TO THE LABOR LAW OR THE
5 FAIR LABOR STANDARDS ACT, AS APPLICABLE.
6 22. EMPLOYER. THE TERM "EMPLOYER", WHEN USED IN THIS CHAPTER, SHALL
7 HAVE THE SAME MEANING AS "EMPLOYER" PURSUANT TO THE LABOR LAW OR THE
8 FAIR LABOR STANDARDS ACT, AS APPLICABLE.
9 23. WAGE CLAIM. THE TERM "WAGE CLAIM", WHEN USED IN THIS CHAPTER,
10 MEANS A CLAIM THAT AN EMPLOYEE HAS SUFFERED A VIOLATION OF SECTIONS ONE
11 HUNDRED SEVENTY, ONE HUNDRED NINETY-ONE, ONE HUNDRED NINETY-THREE, ONE
12 HUNDRED NINETY-SIX-D, SIX HUNDRED FIFTY-TWO OR SIX HUNDRED SEVENTY-THREE
13 OF THE LABOR LAW OR THE RELATED REGULATIONS AND WAGE ORDERS PROMULGATED
14 BY THE COMMISSIONER, A CLAIM FOR WAGES DUE TO AN EMPLOYEE PURSUANT TO AN
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09323-02-5
A. 5501--A 2
1 EMPLOYMENT CONTRACT THAT WERE UNPAID IN VIOLATION OF THAT CONTRACT, OR A
2 CLAIM THAT AN EMPLOYEE HAS SUFFERED A VIOLATION OF 29 U.S.C. S 206.
3 S 2. Section 3 of the lien law, as amended by chapter 137 of the laws
4 of 1985, is amended to read as follows:
5 S 3. Mechanic's lien AND EMPLOYEE'S LIEN on [real] property. 1.
6 MECHANIC'S LIEN. A contractor, subcontractor, laborer, materialman,
7 landscape gardener, nurseryman or person or corporation selling fruit or
8 ornamental trees, roses, shrubbery, vines and small fruits, who performs
9 labor or furnishes materials for the improvement of real property with
10 the consent or at the request of the owner thereof, or of his agent,
11 contractor or subcontractor, and any trust fund to which benefits and
12 wage supplements are due or payable for the benefit of such laborers,
13 shall have a lien for the principal and interest, of the value, or the
14 agreed price, of such labor, including benefits and wage supplements due
15 or payable for the benefit of any laborer, or materials upon the real
16 property improved or to be improved and upon such improvement, from the
17 time of filing a notice of such lien as prescribed in this chapter.
18 Where the contract for an improvement is made with a husband or wife and
19 the property belongs to the other or both, the husband or wife contract-
20 ing shall also be presumed to be the agent of the other, unless such
21 other having knowledge of the improvement shall, within ten days after
22 learning of the contract give the contractor written notice of his or
23 her refusal to consent to the improvement. Within the meaning of the
24 provisions of this chapter, materials actually manufactured for but not
25 delivered to the real property, shall also be deemed to be materials
26 furnished.
27 2. EMPLOYEE'S LIEN. AN EMPLOYEE WHO HAS A WAGE CLAIM AS THAT TERM IS
28 DEFINED IN SUBDIVISION TWENTY-THREE OF SECTION TWO OF THIS CHAPTER SHALL
29 HAVE A LIEN ON HIS OR HER EMPLOYER'S INTEREST IN PROPERTY FOR THE VALUE
30 OF THE WAGE CLAIM ARISING OUT OF THE EMPLOYMENT, FROM THE TIME OF FILING
31 A NOTICE OF SUCH LIEN AS PRESCRIBED IN THIS CHAPTER. AN EMPLOYEE'S LIEN
32 BASED ON A WAGE CLAIM MAY BE HAD AGAINST THE EMPLOYER'S INTEREST IN REAL
33 PROPERTY AND AGAINST THE EMPLOYER'S INTEREST IN PERSONAL PROPERTY THAT
34 CAN BE SUFFICIENTLY DESCRIBED WITHIN THE MEANING OF SECTION 9-108 OF THE
35 UNIFORM COMMERCIAL CODE, EXCEPT THAT AN EMPLOYEE'S LIEN SHALL NOT EXTEND
36 TO ACCOUNTS OR GOODS AS THOSE TERMS ARE DEFINED IN SECTION 9-102 OF THE
37 UNIFORM COMMERCIAL CODE.
38 3. AS USED IN THIS ARTICLE AND UNLESS OTHERWISE SPECIFIED, A LIEN
39 SHALL MEAN AN EMPLOYEE'S LIEN OR A MECHANIC'S LIEN.
40 S 3. Subdivisions 1 and 2 of section 4 of the lien law, subdivision 1
41 as amended by chapter 515 of the laws of 1929 and subdivision 2 as added
42 by chapter 704 of the laws of 1985, are amended to read as follows:
43 (1) [Such] A MECHANIC'S OR EMPLOYEE'S lien AND EMPLOYEE'S LIEN AGAINST
44 REAL PROPERTY shall extend to the owner's right, title or interest in
45 the real property and improvements, existing at the time of filing the
46 notice of lien, or thereafter acquired, except as hereinafter in this
47 article provided. If an owner assigns his interest in such real property
48 by a general assignment for the benefit of creditors, within thirty days
49 prior to such filing, the lien shall extend to the interest thus
50 assigned. If any part of the real property subjected to such lien be
51 removed by the owner or by any other person, at any time before the
52 discharge thereof, such removal shall not affect the rights of the
53 lienor, either in respect to the remaining real property, or the part so
54 removed. If labor is performed for, or materials furnished to, a
55 contractor or subcontractor for an improvement, the MECHANIC'S lien
56 shall not be for a sum greater than the sum earned and unpaid on the
A. 5501--A 3
1 contract at the time of filing the notice of lien, and any sum subse-
2 quently earned thereon. In no case shall the owner be liable to pay by
3 reason of all MECHANIC'S liens created pursuant to this article a sum
4 greater than the value or agreed price of the labor and materials
5 remaining unpaid, at the time of filing notices of such liens, except as
6 hereinafter provided.
7 (2) [Such] A MECHANIC'S OR EMPLOYEE'S lien shall not extend to the
8 owner's right, title or interest in real property and improvements,
9 existing at the time of filing the notice of lien if such lien arises
10 from the failure of a lessee of the right to explore, develop or produce
11 natural gas or oil, to pay for, compensate or render value for improve-
12 ments made with the consent or at the request of such lessee by a
13 contractor, subcontractor, materialman, equipment operator or owner,
14 landscaper, nurseryman, or person or corporation who performs labor or
15 furnishes materials for the exploration, development, or production of
16 oil or natural gas or otherwise improves such leased property. Such
17 MECHANIC'S OR EMPLOYEE'S lien shall extend to the improvements made for
18 the exploration, development and production of oil and natural gas, and
19 the working interest held by a lessee of the right to explore, develop
20 or produce oil and natural gas.
21 S 4. The opening paragraph of section 4-a of the lien law, as amended
22 by chapter 696 of the laws of 1959, is amended to read as follows:
23 The proceeds of any insurance which by the terms of the policy are
24 payable to the owner of real property improved, and actually received or
25 to be received by him because of the destruction or removal by fire or
26 other casualty of an improvement on which lienors have performed labor
27 or services or for which they have furnished materials, OR UPON WHICH AN
28 EMPLOYEE HAS ESTABLISHED AN EMPLOYEE'S LIEN, shall after the owner has
29 been reimbursed therefrom for premiums paid by him, if any, for such
30 insurance, be subject to liens provided by this act to the same extent
31 and in the same order of priority as the real property would have been
32 had such improvement not been so destroyed or removed.
33 S 5. Subdivisions 1, 2 and 5 of section 9 of the lien law, as amended
34 by chapter 515 of the laws of 1929, are amended to read as follows:
35 1. The name OF THE LIENOR, and EITHER THE residence of the lienor OR
36 THE NAME AND BUSINESS ADDRESS OF THE LIENOR'S ATTORNEY, IF ANY; and if
37 the lienor is a partnership or a corporation, the business address of
38 such firm, or corporation, the names of partners and principal place of
39 business, and if a foreign corporation, its principal place of business
40 within the state.
41 2. The name of the owner of the [real] property against whose interest
42 therein a lien is claimed, and the interest of the owner as far as known
43 to the lienor.
44 5. The amount unpaid to the lienor for such labor or materials, OR THE
45 AMOUNT OF THE WAGE CLAIM IF A WAGE CLAIM IS THE BASIS FOR ESTABLISHMENT
46 OF THE LIEN.
47 S 6. Subdivision 1 of section 10 of the lien law, as amended by chap-
48 ter 367 of the laws of 2011, is amended to read as follows:
49 1. (A) Notice of MECHANIC'S lien may be filed at any time during the
50 progress of the work and the furnishing of the materials, or, within
51 eight months after the completion of the contract, or the final perform-
52 ance of the work, or the final furnishing of the materials, dating from
53 the last item of work performed or materials furnished; provided, howev-
54 er, that where the improvement is related to real property improved or
55 to be improved with a single family dwelling, the notice of MECHANIC'S
56 lien may be filed at any time during the progress of the work and the
A. 5501--A 4
1 furnishing of the materials, or, within four months after the completion
2 of the contract, or the final performance of the work, or the final
3 furnishing of the materials, dating from the last item of work performed
4 or materials furnished; and provided further where the notice of MECHAN-
5 IC'S lien is for retainage, the notice of MECHANIC'S lien may be filed
6 within ninety days after the date the retainage was due to be released;
7 except that in the case of a MECHANIC'S lien by a real estate broker,
8 the notice of MECHANIC'S lien may be filed only after the performance of
9 the brokerage services and execution of lease by both lessor and lessee
10 and only if a copy of the alleged written agreement of employment or
11 compensation is annexed to the notice of lien, provided that where the
12 payment pursuant to the written agreement of employment or compensation
13 is to be made in installments, then a notice of lien may be filed within
14 eight months after the final payment is due, but in no event later than
15 a date five years after the first payment was made. For purposes of this
16 section, the term "single family dwelling" shall not include a dwelling
17 unit which is a part of a subdivision that has been filed with a munici-
18 pality in which the subdivision is located when at the time the lien is
19 filed, such property in the subdivision is owned by the developer for
20 purposes other than his personal residence. For purposes of this
21 section, "developer" shall mean and include any private individual,
22 partnership, trust or corporation which improves two or more parcels of
23 real property with single family dwellings pursuant to a common scheme
24 or plan. [The]
25 (B) NOTICE OF EMPLOYEE'S LIEN MAY BE FILED AT ANY TIME NOT LATER THAN
26 SIX YEARS FOLLOWING THE END OF THE EMPLOYMENT GIVING RISE TO THE WAGE
27 CLAIM.
28 (C) A notice of lien, OTHER THAN FOR A LIEN ON PERSONAL PROPERTY, must
29 be filed in the clerk's office of the county where the property is situ-
30 ated. If such property is situated in two or more counties, the notice
31 of lien shall be filed in the office of the clerk of each of such coun-
32 ties. The county clerk of each county shall provide and keep a book to
33 be called the "lien docket," which shall be suitably ruled in columns
34 headed "owners," "lienors," "lienor's attorney," "property," "amount,"
35 "time of filing," "proceedings had," in each of which he shall enter the
36 particulars of the notice, properly belonging therein. The date, hour
37 and minute of the filing of each notice of lien shall be entered in the
38 proper column. Except where the county clerk maintains a block index,
39 the names of the owners shall be arranged in such book in alphabetical
40 order. The validity of the lien and the right to file a notice thereof
41 shall not be affected by the death of the owner before notice of the
42 lien is filed. A NOTICE OF EMPLOYEE'S LIEN ON PERSONAL PROPERTY MUST BE
43 FILED, TOGETHER WITH A FINANCING STATEMENT, IN THE FILING OFFICE AS SET
44 FORTH IN SECTION 9-501 OF THE UNIFORM COMMERCIAL CODE.
45 S 7. Section 11 of the lien law, as amended by chapter 147 of the laws
46 of 1996, is amended to read as follows:
47 S 11. Service of copy of notice of lien. 1. Within five days before
48 or thirty days after filing the notice of A MECHANIC'S lien, the lienor
49 shall serve a copy of such notice upon the owner, if a natural person,
50 (a) by delivering the same to him personally, or if the owner cannot be
51 found, to his agent or attorney, or (b) by leaving it at his last known
52 place of residence in the city or town in which the real property or
53 some part thereof is situated, with a person of suitable age and
54 discretion, or (c) by registered or certified mail addressed to his last
55 known place of residence, or (d) if such owner has no such residence in
56 such city or town, or cannot be found, and he has no agent or attorney,
A. 5501--A 5
1 by affixing a copy thereof conspicuously on such property, between the
2 hours of nine o'clock in the forenoon and four o'clock in the afternoon;
3 if the owner be a corporation, said service shall be made (i) by deliv-
4 ering such copy to and leaving the same with the president, vice-presi-
5 dent, secretary or clerk to the corporation, the cashier, treasurer or a
6 director or managing agent thereof, personally, within the state, or
7 (ii) if such officer cannot be found within the state by affixing a copy
8 thereof conspicuously on such property between the hours of nine o'clock
9 in the forenoon and four o'clock in the afternoon, or (iii) by regis-
10 tered or certified mail addressed to its last known place of business.
11 Failure to file proof of such a service with the county clerk within
12 thirty-five days after the notice of lien is filed shall terminate the
13 notice as a lien. Until service of the notice has been made, as above
14 provided, an owner, without knowledge of the lien, shall be protected in
15 any payment made in good faith to any contractor or other person claim-
16 ing a lien.
17 2. WITHIN FIVE DAYS BEFORE OR THIRTY DAYS AFTER FILING THE NOTICE OF
18 AN EMPLOYEE'S LIEN, THE LIENOR SHALL SERVE A COPY OF SUCH NOTICE UPON
19 THE EMPLOYER, IF A NATURAL PERSON, (A) BY DELIVERING THE SAME TO HIM
20 PERSONALLY, OR IF THE EMPLOYER CANNOT BE FOUND, TO HIS AGENT OR ATTOR-
21 NEY, OR (B) BY LEAVING IT AS HIS LAST KNOWN PLACE OF RESIDENCE OR BUSI-
22 NESS, WITH A PERSON OF SUITABLE AGE AND DISCRETION, OR (C) BY REGISTERED
23 OR CERTIFIED MAIL ADDRESSED TO HIS LAST KNOWN PLACE OF RESIDENCE OR
24 BUSINESS, OR (D) IF SUCH EMPLOYER OWNS REAL PROPERTY, BY AFFIXING A COPY
25 THEREOF CONSPICUOUSLY ON SUCH PROPERTY, BETWEEN THE HOURS OF NINE
26 O'CLOCK IN THE FORENOON AND FOUR O'CLOCK IN THE AFTERNOON. THE LIENOR
27 ALSO SHALL, WITHIN THIRTY DAYS AFTER FILING THE NOTICE OF EMPLOYEE'S
28 LIEN, AFFIX A COPY THEREOF CONSPICUOUSLY ON THE REAL PROPERTY IDENTIFIED
29 IN THE NOTICE OF EMPLOYEE'S LIEN, BETWEEN THE HOURS OF NINE O'CLOCK IN
30 THE FORENOON AND FOUR O'CLOCK IN THE AFTERNOON. IF THE EMPLOYER BE A
31 CORPORATION, SAID SERVICE SHALL BE MADE (I) BY DELIVERING SUCH COPY TO
32 AND LEAVING THE SAME WITH THE PRESIDENT, VICE-PRESIDENT, SECRETARY OR
33 CLERK TO THE CORPORATION, THE CASHIER, TREASURER OR A DIRECTOR OR MANAG-
34 ING AGENT THEREOF, PERSONALLY, WITHIN THE STATE, OR (II) IF SUCH OFFICER
35 CANNOT BE FOUND WITHIN THE STATE BY AFFIXING A COPY THEREOF CONSPICUOUS-
36 LY ON SUCH PROPERTY BETWEEN THE HOURS OF NINE O'CLOCK IN THE FORENOON
37 AND FOUR O'CLOCK IN THE AFTERNOON, OR (III) BY REGISTERED OR CERTIFIED
38 MAIL ADDRESSED TO ITS LAST KNOWN PLACE OF BUSINESS, OR (IV) BY DELIVERY
39 TO THE SECRETARY OF THE DEPARTMENT OF STATE IN THE SAME MANNER AS
40 REQUIRED BY PARAGRAPH ONE OF SUBDIVISION (B) OF SECTION 306 OF THE BUSI-
41 NESS CORPORATION LAW. FAILURE TO FILE PROOF OF SUCH A SERVICE WITH THE
42 COUNTY CLERK WITHIN THIRTY-FIVE DAYS AFTER THE NOTICE OF LIEN IS FILED
43 SHALL TERMINATE THE NOTICE AS A LIEN. UNTIL SERVICE OF THE NOTICE HAS
44 BEEN MADE, AS ABOVE PROVIDED, AN OWNER, WITHOUT KNOWLEDGE OF THE LIEN,
45 SHALL BE PROTECTED IN ANY PAYMENT MADE IN GOOD FAITH TO ANY OTHER PERSON
46 CLAIMING A LIEN.
47 S 8. Section 11-b of the lien law, as amended by chapter 147 of the
48 laws of 1996, is amended to read as follows:
49 S 11-b. Copy of notice of MECHANIC'S lien to a contractor or subcon-
50 tractor. Within five days before or thirty days after filing a notice
51 of MECHANIC'S lien in accordance with section ten of this chapter or the
52 filing of an amendment of notice of MECHANIC'S lien in accordance with
53 section twelve-a of this [chapter] ARTICLE the lienor shall serve a copy
54 of such notice or amendment by certified mail on the contractor, subcon-
55 tractor, assignee or legal representative for whom he was employed or to
56 whom he furnished materials or if the lienor is a contractor or subcon-
A. 5501--A 6
1 tractor to the person, firm or corporation with whom the contract was
2 made. A lienor having a direct contractual relationship with a subcon-
3 tractor or a sub-subcontractor but not with a contractor shall also
4 serve a copy of such notice or amendment by certified mail to the
5 contractor. Failure to file proof of such a service with the county
6 clerk within thirty-five days after the notice of lien is filed shall
7 terminate the notice as a lien. Any lienor, or a person acting on behalf
8 of a lienor, who fails to serve a copy of the notice of MECHANIC'S lien
9 as required by this section shall be liable for reasonable attorney's
10 fees, costs and expenses, as determined by the court, incurred in
11 obtaining such copy.
12 S 9. Subdivision 1 of section 12-a of the lien law, as amended by
13 chapter 1048 of the laws of 1971, is amended to read as follows:
14 1. Within sixty days after the original filing, a lienor may amend his
15 lien upon twenty days notice to existing lienors, mortgagees and the
16 owner, provided that no action or proceeding to enforce or cancel the
17 mechanics' lien OR EMPLOYEE'S LIEN has been brought in the interim,
18 where the purpose of the amendment is to reduce the amount of the lien,
19 except the question of wilful exaggeration shall survive such amendment.
20 S 10. Subdivision 1 of section 13 of the lien law, as amended by chap-
21 ter 878 of the laws of 1947, is amended to read as follows:
22 (1) [A] AN EMPLOYEE'S LIEN, OR A lien for materials furnished or labor
23 performed in the improvement of real property, shall have priority over
24 a conveyance, mortgage, judgment or other claim against such property
25 not recorded, docketed or filed at the time of the filing of the notice
26 of such lien, except as hereinafter in this chapter provided; over
27 advances made upon any mortgage or other encumbrance thereon after such
28 filing, except as hereinafter in this article provided; and over the
29 claim of a creditor who has not furnished materials or performed labor
30 upon such property, if such property has been assigned by the owner by a
31 general assignment for the benefit of creditors, within thirty days
32 before the filing of either of such notices; and also over an attachment
33 hereafter issued or a money judgment hereafter recovered upon a claim,
34 which, in whole or in part, was not for materials furnished, labor
35 performed or moneys advanced for the improvement of such real property;
36 and over any claim or lien acquired in any proceedings upon such judg-
37 ment. Such liens shall also have priority over advances made upon a
38 contract by an owner for an improvement of real property which contains
39 an option to the contractor, his successor or assigns to purchase the
40 property, if such advances were made after the time when the labor began
41 or the first item of material was furnished, as stated in the notice of
42 lien. If several buildings are demolished, erected, altered or repaired,
43 or several pieces or parcels of real property are improved, under one
44 contract, and there are conflicting liens thereon, each lienor shall
45 have priority upon the particular part of the real property or upon the
46 particular building or premises where his labor is performed or his
47 materials are used. Persons shall have no priority on account of the
48 time of filing their respective notices of liens, but all liens shall be
49 on a parity except as hereinafter in section fifty-six of this chapter
50 provided; and except that in all cases laborers for daily or weekly
51 wages WITH A MECHANIC'S LIEN, AND EMPLOYEES WITH AN EMPLOYEE'S LIEN,
52 shall have preference over all other claimants under this article.
53 S 11. Section 17 of the lien law, as amended by chapter 324 of the
54 laws of 2000, is amended to read as follows:
55 S 17. Duration of lien. 1. (A) No MECHANIC'S lien specified in this
56 article shall be a lien for a longer period than one year after the
A. 5501--A 7
1 notice of lien has been filed, unless within that time an action is
2 commenced to foreclose the lien, and a notice of the pendency of such
3 action, whether in a court of record or in a court not of record, is
4 filed with the county clerk of the county in which the notice of lien is
5 filed, containing the names of the parties to the action, the object of
6 the action, a brief description of the real property affected thereby,
7 and the time of filing the notice of lien; or unless an extension to
8 such lien, except for a lien on real property improved or to be improved
9 with a single family dwelling, is filed with the county clerk of the
10 county in which the notice of lien is filed within one year from the
11 filing of the original notice of lien, continuing such lien and such
12 lien shall be redocketed as of the date of filing such extension. Such
13 extension shall contain the names of the lienor and the owner of the
14 real property against whose interest therein such lien is claimed, a
15 brief description of the real property affected by such lien, the amount
16 of such lien, and the date of filing the notice of lien. No lien shall
17 be continued by such extension for more than one year from the filing
18 thereof. In the event an action is not commenced to foreclose the lien
19 within such extended period, such lien shall be extinguished unless an
20 order be granted by a court of record or a judge or justice thereof,
21 continuing such lien, and such lien shall be redocketed as of the date
22 of granting such order and a statement made that such lien is continued
23 by virtue of such order. A lien on real property improved or to be
24 improved with a single family dwelling may only be extended by an order
25 of a court of record, or a judge or justice thereof. No lien shall be
26 continued by court order for more than one year from the granting there-
27 of, but a new order and entry may be made in each of two successive
28 years. If a lienor is made a party defendant in an action to enforce
29 another lien, and the plaintiff or such defendant has filed a notice of
30 the pendency of the action within the time prescribed in this section,
31 the lien of such defendant is thereby continued. Such action shall be
32 deemed an action to enforce the lien of such defendant lienor. The fail-
33 ure to file a notice of pendency of action shall not abate the action as
34 to any person liable for the payment of the debt specified in the notice
35 of lien, and the action may be prosecuted to judgment against such
36 person. The provisions of this section in regard to continuing liens
37 shall apply to liens discharged by deposit or by order on the filing of
38 an undertaking. Where a lien is discharged by deposit or by order, a
39 notice of pendency of action shall not be filed.
40 (B) A lien, the duration of which has been extended by the filing of a
41 notice of the pendency of an action as above provided, shall neverthe-
42 less terminate as a lien after such notice has been canceled as provided
43 in section sixty-five hundred fourteen of the civil practice law and
44 rules or has ceased to be effective as constructive notice as provided
45 in section sixty-five hundred thirteen of the civil practice law and
46 rules.
47 2. (A) NO EMPLOYEE'S LIEN ON REAL PROPERTY SHALL BE A LIEN FOR A LONG-
48 ER PERIOD THAN ONE YEAR AFTER THE NOTICE OF LIEN HAS BEEN FILED, UNLESS
49 AN EXTENSION TO SUCH LIEN IS FILED WITH THE COUNTY CLERK OF THE COUNTY
50 IN WHICH THE NOTICE OF LIEN IS FILED WITHIN ONE YEAR FROM THE FILING OF
51 THE ORIGINAL NOTICE OF LIEN, CONTINUING SUCH LIEN AND SUCH LIEN SHALL BE
52 REDOCKETED AS OF THE DATE OF FILING SUCH EXTENSION. SUCH EXTENSION SHALL
53 CONTAIN THE NAMES OF THE LIENOR AND THE OWNER OF THE REAL PROPERTY
54 AGAINST WHOSE INTEREST THEREIN SUCH LIEN IS CLAIMED, A BRIEF DESCRIPTION
55 OF THE PROPERTY AFFECTED BY SUCH LIEN, THE AMOUNT OF SUCH LIEN, AND THE
56 DATE OF FILING THE NOTICE OF LIEN. NO LIEN SHALL BE CONTINUED BY SUCH
A. 5501--A 8
1 EXTENSION FOR MORE THAN ONE YEAR FROM THE FILING THEREOF. IN THE EVENT
2 AN ACTION IS NOT COMMENCED TO OBTAIN JUDGMENT ON THE WAGE CLAIM OR TO
3 FORECLOSE THE LIEN WITHIN SUCH EXTENDED PERIOD, SUCH LIEN SHALL BE
4 EXTINGUISHED UNLESS AN ORDER BE GRANTED BY A COURT OF RECORD OR A JUDGE
5 OR JUSTICE THEREOF, CONTINUING SUCH LIEN, AND SUCH LIEN SHALL BE REDOCK-
6 ETED AS OF THE DATE OF GRANTING SUCH ORDER AND A STATEMENT MADE THAT
7 SUCH LIEN IS CONTINUED BY VIRTUE OF SUCH ORDER.
8 (B) NO EMPLOYEE'S LIEN ON PERSONAL PROPERTY SHALL BE A LIEN FOR A
9 LONGER PERIOD THAN ONE YEAR AFTER THE FINANCING STATEMENT HAS BEEN
10 RECORDED, UNLESS AN EXTENSION TO SUCH LIEN, IS FILED WITH THE FILING
11 OFFICE IN WHICH THE FINANCING STATEMENT IS REQUIRED TO BE FILED PURSUANT
12 TO SECTION 9-501 OF THE UNIFORM COMMERCIAL CODE WITHIN ONE YEAR FROM THE
13 FILING OF THE ORIGINAL FINANCING STATEMENT, CONTINUING SUCH LIEN. SUCH
14 EXTENSION SHALL CONTAIN THE NAMES OF THE LIENOR AND THE OWNER OF THE
15 PROPERTY AGAINST WHOSE INTEREST THEREIN SUCH LIEN IS CLAIMED, A BRIEF
16 DESCRIPTION OF THE PRIOR FINANCING STATEMENT TO BE EXTENDED, AND THE
17 DATE OF FILING THE PRIOR FINANCING STATEMENT. NO LIEN SHALL BE CONTIN-
18 UED BY SUCH EXTENSION FOR MORE THAN ONE YEAR FROM THE FILING THEREOF. IN
19 THE EVENT AN ACTION IS NOT COMMENCED TO OBTAIN JUDGMENT ON THE WAGE
20 CLAIM OR TO FORECLOSE THE LIEN WITHIN SUCH EXTENDED PERIOD, SUCH LIEN
21 SHALL BE EXTINGUISHED UNLESS AN ORDER BE GRANTED BY A COURT OF RECORD OR
22 A JUDGE OR JUSTICE THEREOF, CONTINUING SUCH LIEN, AND SUCH LIEN SHALL BE
23 REFILED AS OF THE DATE OF GRANTING SUCH ORDER AND A STATEMENT MADE THAT
24 SUCH LIEN IS CONTINUED BY VIRTUE OF SUCH ORDER.
25 (C) IF A LIENOR IS MADE A PARTY DEFENDANT IN AN ACTION TO ENFORCE
26 ANOTHER LIEN, AND THE PLAINTIFF OR SUCH DEFENDANT HAS FILED A NOTICE OF
27 THE PENDENCY OF THE ACTION WITHIN THE TIME PRESCRIBED IN THIS SECTION,
28 THE LIEN OF SUCH DEFENDANT IS THEREBY CONTINUED. SUCH ACTION SHALL BE
29 DEEMED AN ACTION TO ENFORCE THE LIEN OF SUCH DEFENDANT LIENOR. THE FAIL-
30 URE TO FILE A NOTICE OF PENDENCY OF ACTION SHALL NOT ABATE THE ACTION AS
31 TO ANY PERSON LIABLE FOR THE PAYMENT OF THE DEBT SPECIFIED IN THE NOTICE
32 OF LIEN, AND THE ACTION MAY BE PROSECUTED TO JUDGMENT AGAINST SUCH
33 PERSON. THE PROVISIONS OF THIS SECTION IN REGARD TO CONTINUING LIENS
34 SHALL APPLY TO LIENS DISCHARGED BY DEPOSIT OR BY ORDER ON THE FILING OF
35 AN UNDERTAKING. WHERE A LIEN IS DISCHARGED BY DEPOSIT OR BY ORDER, A
36 NOTICE OF PENDENCY OF ACTION SHALL NOT BE FILED.
37 (D) NOTWITHSTANDING THE FOREGOING, IF A LIENOR COMMENCES A FORECLOSURE
38 ACTION OR AN ACTION TO OBTAIN A JUDGMENT ON THE WAGE CLAIM WITHIN ONE
39 YEAR FROM THE FILING OF THE NOTICE OF LIEN ON REAL PROPERTY OR THE
40 RECORDING OF THE FINANCING STATEMENT CREATING LIEN ON PERSONAL PROPERTY,
41 THE LIEN SHALL BE EXTENDED DURING THE PENDENCY OF THE ACTION AND FOR ONE
42 HUNDRED TWENTY DAYS FOLLOWING THE ENTRY OF FINAL JUDGMENT IN SUCH
43 ACTION, UNLESS THE ACTION RESULTS IN A FINAL JUDGMENT OR ADMINISTRATIVE
44 ORDER IN THE LIENOR'S FAVOR ON THE WAGE CLAIMS AND THE LIENOR COMMENCES
45 A FORECLOSURE ACTION, IN WHICH INSTANCE THE LIEN SHALL BE VALID DURING
46 THE PENDENCY OF THE FORECLOSURE ACTION. IF A LIEN IS EXTENDED DUE TO THE
47 PENDENCY OF A FORECLOSURE ACTION OR AN ACTION TO OBTAIN A JUDGMENT ON
48 THE WAGE CLAIM, THE LIENOR SHALL FILE A NOTICE OF SUCH PENDENCY AND
49 EXTENSION WITH THE COUNTY CLERK OF THE COUNTY IN WHICH THE NOTICE OF
50 LIEN IS FILED, CONTAINING THE NAMES OF THE PARTIES TO THE ACTION, THE
51 OBJECT OF THE ACTION, A BRIEF DESCRIPTION OF THE PROPERTY AFFECTED
52 THEREBY, AND THE TIME OF FILING THE NOTICE OF LIEN, OR IN THE CASE OF A
53 LIEN ON PERSONAL PROPERTY SHALL FILE SUCH NOTICE WITH THE OFFICE AUTHOR-
54 IZED TO ACCEPT FINANCING STATEMENTS PURSUANT TO SECTION 9-501 OF THE
55 UNIFORM COMMERCIAL CODE. FOR PURPOSES OF THIS SECTION, AN ACTION TO
56 OBTAIN JUDGMENT ON A WAGE CLAIM INCLUDES AN ACTION BROUGHT IN ANY COURT
A. 5501--A 9
1 OF COMPETENT JURISDICTION OR THE SUBMISSION OF A COMPLAINT TO THE
2 DEPARTMENT OF LABOR. AN ACTION ALSO INCLUDES AN INVESTIGATION OF WAGE
3 CLAIMS BY THE COMMISSIONER OF LABOR OR THE ATTORNEY GENERAL OF THE STATE
4 OF NEW YORK, REGARDLESS OF WHETHER SUCH INVESTIGATION WAS INITIATED BY A
5 COMPLAINT.
6 (E) A LIEN, THE DURATION OF WHICH HAS BEEN EXTENDED BY THE FILING OF A
7 NOTICE OF THE PENDENCY OF AN ACTION AS ABOVE PROVIDED, SHALL NEVERTHE-
8 LESS TERMINATE AS A LIEN AFTER SUCH NOTICE HAS BEEN CANCELED AS PROVIDED
9 IN SECTION SIXTY-FIVE HUNDRED FOURTEEN OF THE CIVIL PRACTICE LAW AND
10 RULES OR HAS CEASED TO BE EFFECTIVE AS CONSTRUCTIVE NOTICE AS PROVIDED
11 IN SECTION SIXTY-FIVE HUNDRED THIRTEEN OF THE CIVIL PRACTICE LAW AND
12 RULES.
13 S 12. Subdivisions 2 and 4 of section 19 of the lien law, subdivision
14 2 as amended by chapter 310 of the laws of 1962, and subdivision 4 as
15 added by chapter 582 of the laws of 2002, paragraph (a) of subdivision 4
16 as further amended by section 104 of part A of chapter 62 of the laws of
17 2011, are amended to read as follows:
18 (2) By failure to begin an action to foreclose such lien or to secure
19 an order continuing it, within one year from the time of filing the
20 notice of lien, unless (I) an action be begun within the same period to
21 foreclose a mortgage or another mechanic's lien upon the same property
22 or any part thereof and a notice of pendency of such action is filed
23 according to law, OR (II) AN ACTION IS COMMENCED TO OBTAIN A JUDGMENT ON
24 A WAGE CLAIM PURSUANT TO SUBDIVISION TWO OF SECTION SEVENTEEN OF THIS
25 ARTICLE, but a lien, the duration of which has been extended by the
26 filing of a notice of the pendency of an action as herein provided,
27 shall nevertheless terminate as a lien after such notice has been
28 cancelled or has ceased to be effective as constructive notice.
29 (4) Either before or after the beginning of an action by the EMPLOYER,
30 owner or contractor executing a bond or undertaking in an amount equal
31 to one hundred ten percent of such lien conditioned for the payment of
32 any judgment which may be rendered against the property OR EMPLOYER for
33 the enforcement of the lien:
34 a. The execution of any such bond or undertaking by any fidelity or
35 surety company authorized by the laws of this state to transact busi-
36 ness, shall be sufficient; and where a certificate of qualification has
37 been issued by the superintendent of financial services under the
38 provisions of section one thousand one hundred eleven of the insurance
39 law, and has not been revoked, no justification or notice thereof shall
40 be necessary. Any such company may execute any such bond or undertaking
41 as surety by the hand of its officers, or attorney, duly authorized
42 thereto by resolution of its board of directors, a certified copy of
43 which resolution, under the seal of said company, shall be filed with
44 each bond or undertaking. Any such bond or undertaking shall be filed
45 with the clerk of the county in which the notice of lien is filed, and a
46 copy shall be served upon the adverse party. The undertaking is effec-
47 tive when so served and filed. If a certificate of qualification issued
48 pursuant to subsections (b), (c) and (d) of section one thousand one
49 hundred eleven of the insurance law is not filed with the undertaking, a
50 party may except, to the sufficiency of a surety and by a written notice
51 of exception served upon the adverse party within ten days after
52 receipt, a copy of the undertaking. Exceptions deemed by the court to
53 have been taken unnecessarily, or for vexation or delay, may, upon
54 notice, be set aside, with costs. Where no exception to sureties is
55 taken within ten days or where exceptions taken are set aside, the
56 undertaking shall be allowed.
A. 5501--A 10
1 b. In the case of bonds or undertakings not executed pursuant to para-
2 graph a of this subdivision, the EMPLOYER, owner or contractor shall
3 execute an undertaking with two or more sufficient sureties, who shall
4 be free holders, to the clerk of the county where the premises are situ-
5 ated. The sureties must together justify in at least double the sum
6 named in the undertaking. A copy of the undertaking, with notice that
7 the sureties will justify before the court, or a judge or justice there-
8 of, at the time and place therein mentioned, must be served upon the
9 lienor or his attorney, not less than five days before such time. Upon
10 the approval of the undertaking by the court, judge or justice an order
11 shall be made by such court, judge or justice discharging such lien.
12 c. If the lienor cannot be found, or does not appear by attorney,
13 service under this subsection may be made by leaving a copy of such
14 undertaking and notice at the lienor's place of residence, or if a
15 corporation at its principal place of business within the state as stat-
16 ed in the notice of lien, with a person of suitable age and discretion
17 therein, or if the house of his abode or its place of business is not
18 stated in said notice of lien and is not known, then in such manner as
19 the court may direct. The premises, if any, described in the notice of
20 lien as the lienor's residence or place of business shall be deemed to
21 be his said residence or its place of business for the purposes of said
22 service at the time thereof, unless it is shown affirmatively that the
23 person servicing the papers or directing the service had knowledge to
24 the contrary. Notwithstanding the other provisions of this subdivision
25 relating to service of notice, in any case where the mailing address of
26 the lienor is outside the state such service may be made by registered
27 or certified mail, return receipt requested, to such lienor at the mail-
28 ing address contained in the notice of lien.
29 d. Except as otherwise provided in this subdivision, the provisions of
30 article twenty-five of the civil practice law and rules regulating
31 undertakings is applicable to a bond or undertaking given for the
32 discharge of a lien on account of private improvements OR OF AN EMPLOY-
33 EE'S LIEN.
34 S 13. Section 24 of the lien law, as amended by chapter 515 of the
35 laws of 1929, is amended to read as follows:
36 S 24. Enforcement of [mechanic's] lien. (1) REAL PROPERTY. The
37 [mechanics'] liens ON REAL PROPERTY specified in this article may be
38 enforced against the property specified in the notice of lien and which
39 is subject thereto and against any person liable for the debt upon which
40 the lien is founded, as prescribed in article three of this chapter.
41 (2) PERSONAL PROPERTY. AN EMPLOYEE'S LIEN ON PERSONAL PROPERTY SPECI-
42 FIED IN THIS ARTICLE MAY IMMEDIATELY BE ENFORCED AGAINST THE PROPERTY
43 THROUGH A FORECLOSURE AS PRESCRIBED IN ARTICLE NINE OF THE UNIFORM
44 COMMERCIAL CODE, OR UPON JUDGMENT OBTAINED BY THE EMPLOYEE, COMMISSIONER
45 OF LABOR OR ATTORNEY GENERAL OF THE STATE OF NEW YORK, MAY BE ENFORCED
46 IN ANY MANNER AVAILABLE TO THE JUDGMENT CREDITOR PURSUANT TO ARTICLE
47 NINE OF THE UNIFORM COMMERCIAL CODE OR OTHER APPLICABLE LAWS.
48 S 14. Section 26 of the lien law, as amended by chapter 373 of the
49 laws of 1977, is amended to read as follows:
50 S 26. Subordination of liens after agreement with owner. In case an
51 owner of real property shall execute to one or more persons, or a corpo-
52 ration, as trustee or trustees, a bond and mortgage or a note and mort-
53 gage affecting such property in whole or in part, or an assignment of
54 the moneys due or to become due under a contract for a building loan in
55 relation to such property, and in case such mortgage, if any, shall be
56 recorded in the office of the register of the county where such real
A. 5501--A 11
1 property is situated, or if such county has no register then in the
2 office of the clerk of such county, and in case such assignment, if any,
3 shall be filed in the office of the clerk of the county where such real
4 property is situated; and in case lienors having [mechanics'] liens
5 against said real property, notices of which have been filed up to and
6 not later than fifteen days after the recording of such mortgage or the
7 filing of such assignment, and which liens have not been discharged as
8 in this article provided, shall, to the extent of at least fifty-five
9 per centum of the aggregate amount for which such notices of liens have
10 been so filed, approve such bond and mortgage or such note and mortgage,
11 if any, and such assignment, if any, by an instrument or instruments in
12 writing, duly acknowledged and filed in the office of such county clerk,
13 then all mechanics' liens for labor performed or material furnished
14 prior to the recording of such mortgage or filing of such assignment,
15 whether notices thereof have been theretofore or are thereafter filed
16 and which have not been discharged as in this article provided, shall be
17 subordinate to the lien of such trust bond and mortgage or such trust
18 note and mortgage to the extent of the aggregate amount of all certif-
19 icates of interest therein issued by such trustee or trustees, or their
20 successors, for moneys loaned, materials furnished, labor performed and
21 any other indebtedness incurred after said trust mortgage shall have
22 been recorded, and for expenses in connection with said trust mortgage,
23 and shall also be subordinate to the lien of the bond and mortgage or
24 note and mortgage, given to secure the amount agreed to be advanced
25 under such contract for a building loan to the extent of the amount
26 which shall be advanced by the holder of such bond and mortgage or such
27 note and mortgage to the trustee or trustees, or their successors, under
28 such assignment. The provisions of this section shall apply to all bonds
29 and mortgages and notes and mortgages and all assignments of moneys due,
30 or to become due under building loan contracts executed by such owner,
31 in like manner, and recorded or filed, from time to time as hereinbefore
32 provided. In case of an assignment to trustees under the provisions of
33 this section, the trustees and their successors shall be the agents of
34 the assignor to receive and receipt for any and all sums advanced by the
35 holder of the building loan bond and mortgage or the building loan note
36 and mortgage under the building loan contract and such assignment. No
37 lienor shall have any priority over the bond and mortgage or note and
38 mortgage given to secure the money agreed to be advanced under a build-
39 ing loan contract or over the advances made thereunder, by reason of any
40 act preceding the making and approval of such assignment.
41 S 15. Section 38 of the lien law, as amended by chapter 859 of the
42 laws of 1930, is amended to read as follows:
43 S 38. Itemized statement may be required of lienor. A lienor who has
44 filed a notice of MECHANIC'S lien shall, on demand in writing, deliver
45 to the owner or contractor making such demand a statement in writing
46 which shall set forth the items of labor and/or material and the value
47 thereof which make up the amount for which he claims a lien, and which
48 shall also set forth the terms of the contract under which such items
49 were furnished. A LIENOR WHO HAS FILED A NOTICE OF EMPLOYEE LIEN SHALL,
50 ON DEMAND IN WRITING, DELIVER TO THE EMPLOYER MAKING SUCH DEMAND A
51 STATEMENT IN WRITING WHICH SHALL SET FORTH THE ITEMS OF THE WAGE CLAIM
52 AND THE VALUE THEREOF WHICH MAKE UP THE AMOUNT FOR WHICH HE CLAIMS A
53 LIEN. The statement shall be verified by the lienor or his agent in the
54 form required for the verification of notices in section nine of this
55 [chapter] ARTICLE. If the lienor shall fail to comply with such a demand
56 within five days after the same shall have been made by the EMPLOYER,
A. 5501--A 12
1 owner or contractor, or if the lienor delivers an insufficient state-
2 ment, the person aggrieved may petition the supreme court of this state
3 or any justice thereof, or the county court of the county where the
4 premises are situated, or the county judge of such county for an order
5 directing the lienor within a time specified in the order to deliver to
6 the petitioner the statement required by this section. Two days' notice
7 in writing of such application shall be served upon the lienor. Such
8 service shall be made in the manner provided by law for the personal
9 service of a summons. The court or a justice or judge thereof shall hear
10 the parties and upon being satisfied that the lienor has failed,
11 neglected or refused to comply with the requirements of this section
12 shall have an appropriate order directing such compliance. In case the
13 lienor fails to comply with the order so made within the time specified,
14 then upon five days' notice to the lienor, served in the manner provided
15 by law for the personal service of a summons, the court or a justice or
16 judge thereof may make an order cancelling the lien.
17 S 16. Section 39 of the lien law, as added by chapter 859 of the laws
18 of 1930, is amended to read as follows:
19 S 39. Lien wilfully exaggerated is void. In any action or proceeding
20 to enforce a [mechanic's] lien upon a private or public improvement or
21 in which the validity of the lien is an issue, if the court shall find
22 that a lienor has wilfully exaggerated the amount for which he claims a
23 lien as stated in his notice of lien, his lien shall be declared to be
24 void and no recovery shall be had thereon. No such lienor shall have a
25 right to file any other or further lien for the same claim. A second or
26 subsequent lien filed in contravention of this section may be vacated
27 upon application to the court on two days' notice.
28 S 17. Section 40 of the lien law, as amended by chapter 515 of the
29 laws of 1929, is amended to read as follows:
30 S 40. Construction of article. This article is to be construed in
31 connection with article two of this chapter, and provides proceedings
32 for the enforcement of EMPLOYEE'S LIENS ON REAL PROPERTY, AS WELL AS
33 liens for labor performed and materials furnished in the improvement of
34 real property, created by virtue of such article.
35 S 18. Section 41 of the lien law, as amended by chapter 807 of the
36 laws of 1952, is amended to read as follows:
37 S 41. Enforcement of mechanic's OR EMPLOYEE'S lien on real property. A
38 mechanic's lien OR EMPLOYEE'S LIEN on real property may be enforced
39 against such property, and against a person liable for the debt upon
40 which the lien is founded, by an action, by the lienor, his assignee or
41 legal representative, in the supreme court or in a county court other-
42 wise having jurisdiction, regardless of the amount of such debt, or in a
43 court which has jurisdiction in an action founded on a contract for a
44 sum of money equivalent to the amount of such debt.
45 S 19. Section 43 of the lien law, as amended by section 310 of the
46 laws of 1962, is amended to read as follows:
47 S 43. Action in a court of record; consolidation of actions. The
48 provisions of the real property actions and proceedings law relating to
49 actions for the foreclosure of a mortgage upon real property, and the
50 sale and the distribution of the proceeds thereof apply to actions in a
51 court of record, to enforce mechanics' liens AND EMPLOYEES' LIENS on
52 real property, except as otherwise provided in this article. If actions
53 are brought by different lienors in a court of record, the court in
54 which the first action was brought, may, upon its own motion, or upon
55 the application of any party in any of such actions, consolidate all of
56 such actions.
A. 5501--A 13
1 S 20. Section 46 of the lien law, as amended by chapter 515 of the
2 laws of 1929, is amended to read as follows:
3 S 46. Action in a court not of record. If an action to enforce a
4 mechanic's lien OR EMPLOYEE'S LIEN against real property is brought in a
5 court not of record, it shall be commenced by the personal service upon
6 the owner of a summons and complaint verified in the same manner as a
7 complaint in an action in a court of record. The complaint must set
8 forth substantially the facts contained in the notice of lien, and the
9 substance of the agreement under which the labor was performed or the
10 materials were furnished, OR IF THE LIEN IS BASED UPON A WAGE CLAIM AS
11 DEFINED IN SECTION TWO OF THIS CHAPTER, THE BASIS FOR SUCH WAGE CLAIM.
12 The form and contents of the summons shall be the same as provided by
13 law for the commencement of an action upon a contract in such court. The
14 summons must be returnable not less than twelve nor more than twenty
15 days after the date of the summons, or if service is made by publica-
16 tion, after the day of the last publication of the summons. Service
17 must be made at least eight days before the return day.
18 S 21. Section 50 of the lien law, as amended by chapter 515 of the
19 laws of 1929, is amended to read as follows:
20 S 50. Execution. Execution may be issued upon a judgment obtained in
21 an action to enforce a mechanic's lien OR AN EMPLOYEE'S LIEN against
22 real property in a court not of record, which shall direct the officer
23 to sell the title and interest of the owner in the premises, upon which
24 the lien set forth in the complaint existed at the time of filing the
25 notice of lien.
26 S 22. Section 53 of the lien law, as amended by chapter 515 of the
27 laws of 1929, is amended to read as follows:
28 S 53. Costs and disbursements. If an action is brought to enforce a
29 mechanic's lien OR AN EMPLOYEE'S LIEN against real property in a court
30 of record, the costs and disbursements shall rest in the discretion of
31 the court, and may be awarded to the prevailing party. The judgment
32 rendered in such an action shall include the amount of such costs and
33 specify to whom and by whom the costs are to be paid. If such action is
34 brought in a court not of record, they shall be the same as allowed in
35 civil actions in such court. The expenses incurred in serving the
36 summons by publication may be added to the amount of costs now allowed
37 in such court.
38 S 23. Section 59 of the lien law, as amended by chapter 515 of the
39 laws of 1929, is amended to read as follows:
40 S 59. Vacating of a [mechanic's] lien; cancellation of bond; return of
41 deposit, by order of court. 1. A mechanic's lien notice of which has
42 been filed on real property or a bond given to discharge the same may be
43 vacated and cancelled or a deposit made to discharge a lien pursuant to
44 section twenty may be returned, by an order of a court of record. Before
45 such order shall be granted, a notice shall be served upon the lienor,
46 either personally or by leaving it as his last known place of residence,
47 with a person of suitable age, with directions to deliver it to the
48 lienor. Such notice shall require the lienor to commence an action to
49 enforce the lien, within a time specified in the notice, not less than
50 thirty days from the time of service, or show cause at a special term of
51 a court of record, or at a county court, in a county in which the prop-
52 erty is situated, at a time and place specified therein, why the notice
53 of lien filed or the bond given should not be vacated and cancelled, or
54 the deposit returned, as the case may be. Proof of such service and that
55 the lienor has not commenced the action to foreclose such lien, as
A. 5501--A 14
1 directed in the notice, shall be made by affidavit, at the time of
2 applying for such order.
3 2. AN EMPLOYEE'S LIEN NOTICE OF WHICH HAS BEEN FILED ON REAL PROPERTY
4 OR A BOND GIVEN TO DISCHARGE THE SAME MAY BE VACATED AND CANCELLED OR A
5 DEPOSIT MADE TO DISCHARGE A LIEN PURSUANT TO SECTION TWENTY OF THIS
6 CHAPTER MAY BE RETURNED, BY AN ORDER OF A COURT OF RECORD. BEFORE SUCH
7 ORDER SHALL BE GRANTED, A NOTICE SHALL BE SERVED UPON THE LIENOR, EITHER
8 PERSONALLY OR BY LEAVING IT AT HIS LAST KNOWN PLACE OF RESIDENCE OR
9 ATTORNEY'S PLACE OF BUSINESS, WITH A PERSON OF SUITABLE AGE, WITH
10 DIRECTIONS TO DELIVER IT TO THE LIENOR. SUCH NOTICE SHALL REQUIRE THE
11 LIENOR TO COMMENCE AN ACTION TO ENFORCE THE LIEN, OR TO COMMENCE AN
12 ACTION TO OBTAIN JUDGMENT ON THE WAGE CLAIM UPON WHICH THE LIEN WAS
13 ESTABLISHED, WITHIN A TIME SPECIFIED IN THE NOTICE, NOT LESS THAN NINETY
14 DAYS FROM THE TIME OF SERVICE, OR SHOW CAUSE AT A SPECIAL TERM OF A
15 COURT OF RECORD, OR AT A COUNTY COURT, IN A COUNTY IN WHICH THE PROPERTY
16 IS SITUATED, AT A TIME AND PLACE SPECIFIED THEREIN, WHY THE NOTICE OF
17 LIEN FILED OR THE BOND GIVEN SHOULD NOT BE VACATED AND CANCELLED, OR THE
18 DEPOSIT RETURNED, AS THE CASE MAY BE. PROOF OF SUCH SERVICE AND THAT THE
19 LIENOR HAS NOT COMMENCED THE ACTION TO FORECLOSE SUCH LIEN OR AN ACTION
20 TO OBTAIN JUDGMENT ON THE WAGE CLAIM UPON WHICH THE LIEN WAS ESTAB-
21 LISHED, AS DIRECTED IN THE NOTICE, SHALL BE MADE BY AFFIDAVIT, AT THE
22 TIME OF APPLYING FOR SUCH ORDER.
23 S 24. Section 62 of the lien law, as amended by chapter 697 of the
24 laws of 1934, is amended to read as follows:
25 S 62. Bringing in new parties. A lienor who has filed a notice of lien
26 after the commencement of an action in a court of record to foreclose or
27 enforce AN EMPLOYEE'S LIEN OR a mechanic's lien against real property or
28 a public improvement, may at any time up to and including the day
29 preceding the day on which the trial of such action is commenced, make
30 application upon notice to the plaintiff or his attorney in such action,
31 to be made a party therein. Upon good cause shown, the court must order
32 such lienor to be brought in by amendment. If the application is made by
33 any other party in said action to make such lienor or other person a
34 party, the court may in its discretion direct such lienor or other
35 person to be brought in by like amendment. The order to be entered on
36 such application shall provide the time for and manner of serving the
37 pleading of such additional lienor or other person and shall direct that
38 the pleadings, papers and proceedings of the other several parties in
39 such action, shall be deemed amended, so as not to require the making or
40 serving of papers other than said order to effectuate such amendment,
41 and shall further provide that the allegations in the answer of such
42 additional lienor or other person shall, for the purposes of the action,
43 be deemed denied by the other parties therein. The action shall be so
44 conducted by the court as not to cause substantially any delay in the
45 trial thereof. The bringing in of such additional lienor or other
46 person shall be without prejudice to the proceedings had, and if the
47 action be on the calendar of the court, same shall retain its place on
48 such calendar without the necessity of serving a new note of issue and
49 new notices of trial.
50 S 25. Subdivision 3 of section 199-a of the labor law, as amended by
51 chapter 564 of the laws of 2010, is amended to read as follows:
52 3. Each employee and his or her authorized representative shall be
53 notified in writing, OF THE TERMINATION OF THE COMMISSIONER'S INVESTI-
54 GATION OF THE EMPLOYEE'S COMPLAINT AND THE RESULT OF SUCH INVESTIGATION,
55 of any award and collection of back wages and civil penalties, and of
56 any intent to seek criminal penalties. In the event that criminal penal-
A. 5501--A 15
1 ties are sought the employee and his or her authorized representative
2 shall be notified of the outcome of prosecution.
3 S 26. Subdivision 2 of section 663 of the labor law, as amended by
4 chapter 564 of the laws of 2010, is amended to read as follows:
5 2. By commissioner. On behalf of any employee paid less than the wage
6 to which the employee is entitled under the provisions of this article,
7 the commissioner may bring any legal action necessary, including admin-
8 istrative action, to collect such claim, and the employer shall be
9 required to pay the full amount of the underpayment, plus costs, and
10 unless the employer proves a good faith basis to believe that its under-
11 payment was in compliance with the law, an additional amount as liqui-
12 dated damages. Liquidated damages shall be calculated by the commission-
13 er as no more than one hundred percent of the total amount of
14 underpayments found to be due the employee. In any action brought by the
15 commissioner in a court of competent jurisdiction, liquidated damages
16 shall be calculated as an amount equal to one hundred percent of under-
17 payments found to be due the employee. EACH EMPLOYEE OR HIS OR HER
18 AUTHORIZED REPRESENTATIVE SHALL BE NOTIFIED IN WRITING OF THE OUTCOME OF
19 ANY LEGAL ACTION BROUGHT ON THE EMPLOYEE'S BEHALF PURSUANT TO THIS
20 SECTION.
21 S 27. Subdivision 5 of section 6201 of the civil practice law and
22 rules, as amended by chapter 860 of the laws of 1977 and as renumbered
23 by chapter 618 of the laws of 1992, is amended and a new subdivision 6
24 is added to read as follows:
25 5. the cause of action is based on a judgment, decree or order of a
26 court of the United States or of any other court which is entitled to
27 full faith and credit in this state, or on a judgment which qualifies
28 for recognition under the provisions of article 53[.] OF THIS CHAPTER;
29 OR
30 6. THE CAUSE OF ACTION IS BASED ON WAGE CLAIMS. "WAGE CLAIMS," WHEN
31 USED IN THIS CHAPTER, SHALL INCLUDE ANY CLAIMS OF VIOLATIONS OF ARTICLES
32 FIVE, SIX, AND NINETEEN OF THE LABOR LAW, SECTION TWO HUNDRED FIFTEEN OF
33 THE LABOR LAW, AND THE RELATED REGULATIONS OR WAGE ORDERS PROMULGATED BY
34 THE COMMISSIONER OF LABOR, INCLUDING BUT NOT LIMITED TO ANY CLAIMS OF
35 UNPAID, MINIMUM, OVERTIME, AND SPREAD-OF-HOURS PAY, UNLAWFULLY RETAINED
36 GRATUITIES, UNLAWFUL DEDUCTIONS FROM WAGES, UNPAID COMMISSIONS, UNPAID
37 BENEFITS AND WAGE SUPPLEMENTS, AND RETALIATION, AND ANY CLAIMS PURSUANT
38 TO 18 U.S.C. S 1595, 29 U.S.C. S 201 ET SEQ., AND/OR EMPLOYMENT CONTRACT
39 AS WELL AS THE CONCOMITANT LIQUIDATED DAMAGES AND PENALTIES AUTHORIZED
40 PURSUANT TO THE LABOR LAW, THE FAIR LABOR STANDARDS ACT, OR ANY EMPLOY-
41 MENT CONTRACT.
42 S 28. Section 6210 of the civil practice law and rules, as added by
43 chapter 860 of the laws of 1977, is amended to read as follows:
44 S 6210. Order of attachment on notice; temporary restraining order;
45 contents. Upon a motion on notice for an order of attachment, the court
46 may, without notice to the defendant, grant a temporary restraining
47 order prohibiting the transfer of assets by a garnishee as provided in
48 subdivision (b) of section 6214. WHEN ATTACHMENT IS SOUGHT PURSUANT TO
49 SUBDIVISION SIX OF SECTION 6201, AND IF THE EMPLOYER CONTESTS THE
50 MOTION, THE COURT SHALL HOLD A HEARING WITHIN TEN DAYS OF WHEN THE
51 EMPLOYER'S RESPONSE TO PLAINTIFFS' MOTION FOR ATTACHMENT IS DUE. The
52 contents of the order of attachment granted pursuant to this section
53 shall be as provided in subdivision (a) of section 6211.
54 S 29. Subdivision (b) of section 6211 of the civil practice law and
55 rules, as amended by chapter 566 of the laws of 1985, is amended to read
56 as follows:
A. 5501--A 16
1 (b) Confirmation of order. Except where an order of attachment is
2 granted on the ground specified in subdivision one OR SIX of section
3 6201, an order of attachment granted without notice shall provide that
4 within a period not to exceed five days after levy, the plaintiff shall
5 move, on such notice as the court shall direct to the defendant, the
6 garnishee, if any, and the sheriff, for an order confirming the order of
7 attachment. Where an order of attachment without notice is granted on
8 the ground specified in subdivision one OR SIX of section 6201, the
9 court shall direct that the statement required by section 6219 be served
10 within five days, that a copy thereof be served upon the plaintiff, and
11 the plaintiff shall move within ten days after levy for an order
12 confirming the order of attachment. If the plaintiff upon such motion
13 shall show that the statement has not been served and that the plaintiff
14 will be unable to satisfy the requirement of subdivision (b) of section
15 6223 until the statement has been served, the court may grant one exten-
16 sion of the time to move for confirmation for a period not to exceed ten
17 days. If plaintiff fails to make such motion within the required period,
18 the order of attachment and any levy thereunder shall have no further
19 effect and shall be vacated upon motion. Upon the motion to confirm, the
20 provisions of subdivision (b) of section 6223 shall apply. An order of
21 attachment granted without notice may provide that the sheriff refrain
22 from taking any property levied upon into his actual custody, pending
23 further order of the court.
24 S 30. Subdivisions (b) and (e) of rule 6212 of the civil practice law
25 and rules, subdivision (b) as separately amended by chapters 15 and 860
26 of the laws of 1977 and subdivision (e) as added by chapter 860 of the
27 laws of 1977, are amended to read as follows:
28 (b) Undertaking. [On] 1. EXCEPT WHERE AN ORDER OF ATTACHMENT IS SOUGHT
29 ON THE GROUND SPECIFIED IN SUBDIVISION SIX OF SECTION 6201, ON a motion
30 for an order of attachment, the plaintiff shall give an undertaking, in
31 a total amount fixed by the court, but not less than five hundred
32 dollars, a specified part thereof conditioned that the plaintiff shall
33 pay to the defendant all costs and damages, including reasonable attor-
34 ney's fees, which may be sustained by reason of the attachment if the
35 defendant recovers judgment or if it is finally decided that the plain-
36 tiff was not entitled to an attachment of the defendant's property, and
37 the balance conditioned that the plaintiff shall pay to the sheriff all
38 of his allowable fees.
39 2. ON A MOTION FOR AN ATTACHMENT PURSUANT TO SUBDIVISION SIX OF
40 SECTION 6201, THE COURT SHALL ORDER THAT THE PLAINTIFF GIVE AN ACCESSI-
41 BLE UNDERTAKING OF NO MORE THAN FIVE HUNDRED DOLLARS, OR IN THE ALTERNA-
42 TIVE, MAY WAIVE THE UNDERTAKING ALTOGETHER. The attorney for the plain-
43 tiff shall not be liable to the sheriff for such fees. The surety on the
44 undertaking shall not be discharged except upon notice to the sheriff.
45 (e) Damages. [The] EXCEPT WHERE AN ORDER OF ATTACHMENT IS SOUGHT ON
46 THE GROUND SPECIFIED IN SUBDIVISION SIX OF SECTION 6201, THE plaintiff
47 shall be liable to the defendant for all costs and damages, including
48 reasonable attorney's fees, which may be sustained by reason of the
49 attachment if the defendant recovers judgment, or if it is finally
50 decided that the plaintiff was not entitled to an attachment of the
51 defendant's property. Plaintiff's liability shall not be limited by the
52 amount of the undertaking.
53 S 31. Section 6223 of the civil practice law and rules, as amended by
54 chapter 860 of the laws of 1977, is amended to read as follows:
55 S 6223. Vacating or modifying attachment. (a) Motion to vacate or
56 modify. Prior to the application of property or debt to the satisfac-
A. 5501--A 17
1 tion of a judgment, the defendant, the garnishee or any person having an
2 interest in the property or debt may move, on notice to each party and
3 the sheriff, for an order vacating or modifying the order of attachment.
4 Upon the motion, the court may give the plaintiff a reasonable opportu-
5 nity to correct any defect. [If] EXCEPT AS PROVIDED UNDER SUBDIVISION
6 (B), IF, after the defendant has appeared in the action, the court
7 determines that the attachment is unnecessary to the security of the
8 plaintiff, it shall vacate the order of attachment. Such a motion shall
9 not of itself constitute an appearance in the action.
10 (b) Burden of proof. [Upon] EXCEPT WHERE AN ORDER OF ATTACHMENT IS
11 GRANTED PURSUANT TO SUBDIVISION SIX OF SECTION 6201, UPON a motion to
12 vacate or modify an order of attachment the plaintiff shall have the
13 burden of establishing the grounds for the attachment, the need for
14 continuing the levy and the probability that he will succeed on the
15 merits. UPON A MOTION TO VACATE OR MODIFY AN ORDER OF ATTACHMENT GRANTED
16 PURSUANT TO SUBDIVISION SIX OF SECTION 6201, THE DEFENDANT SHALL HAVE
17 THE BURDEN TO DEMONSTRATE THAT THE ATTACHMENT IS UNNECESSARY TO THE
18 SECURITY OF THE PLAINTIFF, IN ORDER TO VACATE OR MODIFY THE ATTACHMENT
19 ORDER.
20 S 32. Paragraph (b) of section 624 of the business corporation law, as
21 amended by chapter 449 of the laws of 1997, is amended to read as
22 follows:
23 (b) Any person who shall have been a shareholder of record of a corpo-
24 ration, OR WHO IS OR SHALL HAVE BEEN A LABORER, SERVANT OR EMPLOYEE,
25 upon at least five days' written demand shall have the right to examine
26 in person or by agent or attorney, during usual business hours, its
27 minutes of the proceedings of its shareholders and record of sharehold-
28 ers and to make extracts therefrom for any purpose reasonably related to
29 such person's interest as a shareholder, LABORER, SERVANT OR EMPLOYEE.
30 Holders of voting trust certificates representing shares of the corpo-
31 ration shall be regarded as shareholders for the purpose of this
32 section. Any such agent or attorney shall be authorized in a writing
33 that satisfies the requirements of a writing under paragraph (b) of
34 section 609 OF THIS ARTICLE (Proxies). A corporation requested to
35 provide information pursuant to this paragraph shall make available such
36 information in written form and in any other format in which such infor-
37 mation is maintained by the corporation and shall not be required to
38 provide such information in any other format. If a request made pursuant
39 to this paragraph includes a request to furnish information regarding
40 beneficial owners, the corporation shall make available such information
41 in its possession regarding beneficial owners as is provided to the
42 corporation by a registered broker or dealer or a bank, association or
43 other entity that exercises fiduciary powers in connection with the
44 forwarding of information to such owners. The corporation shall not be
45 required to obtain information about beneficial owners not in its
46 possession.
47 S 33. Section 630 of the business corporation law, paragraph (a) as
48 amended by chapter 212 of the laws of 1984, paragraph (c) as amended by
49 chapter 746 of the laws of 1963, is amended to read as follows:
50 S 630. Liability of shareholders for wages due to laborers, servants or
51 employees.
52 (a) The ten largest shareholders, as determined by the fair value of
53 their beneficial interest as of the beginning of the period during which
54 the unpaid services referred to in this section are performed, of every
55 corporation (other than an investment company registered as such under
56 an act of congress entitled "Investment Company Act of 1940"), no shares
A. 5501--A 18
1 of which are listed on a national securities exchange or regularly quot-
2 ed in an over-the-counter market by one or more members of a national or
3 an affiliated securities association, shall jointly and severally be
4 personally liable for all debts, wages or salaries due and owing to any
5 of its laborers, servants or employees other than contractors, for
6 services performed by them for such corporation. [Before such laborer,
7 servant or employee shall charge such shareholder for such services, he
8 shall give notice in writing to such shareholder that he intends to hold
9 him liable under this section. Such notice shall be given within one
10 hundred and eighty days after termination of such services, except that
11 if, within such period, the laborer, servant or employee demands an
12 examination of the record of shareholders under paragraph (b) of section
13 624 (Books and records; right of inspection, prima facie evidence), such
14 notice may be given within sixty days after he has been given the oppor-
15 tunity to examine the record of shareholders. An action to enforce such
16 liability shall be commenced within ninety days after the return of an
17 execution unsatisfied against the corporation upon a judgment recovered
18 against it for such services.]
19 (b) For the purposes of this section, wages or salaries shall mean all
20 compensation and benefits payable by an employer to or for the account
21 of the employee for personal services rendered by such employee INCLUD-
22 ING ANY CONCOMITANT LIQUIDATED DAMAGES, PENALTIES, INTEREST, ATTORNEY'S
23 FEES OR COSTS. These shall specifically include but not be limited to
24 salaries, overtime, vacation, holiday and severance pay; employer
25 contributions to or payments of insurance or welfare benefits; employer
26 contributions to pension or annuity funds; and any other moneys properly
27 due or payable for services rendered by such employee.
28 (c) A shareholder who has paid more than his pro rata share under this
29 section shall be entitled to contribution pro rata from the other share-
30 holders liable under this section with respect to the excess so paid,
31 over and above his pro rata share, and may sue them jointly or severally
32 or any number of them to recover the amount due from them. Such recov-
33 ery may be had in a separate action. As used in this paragraph, "pro
34 rata" means in proportion to beneficial share interest. Before a share-
35 holder may claim contribution from other shareholders under this para-
36 graph, he shall[, unless they have been given notice by a laborer, serv-
37 ant or employee under paragraph (a),] give them notice in writing that
38 he intends to hold them so liable to him. Such notice shall be given by
39 him within twenty days after the date that [notice was given to him by]
40 HE BECAME AWARE THAT a laborer, servant or employee MAY SEEK TO HOLD HIM
41 LIABLE under paragraph (a).
42 S 34. Subdivision (c) of section 609 of the limited liability company
43 law, as added by chapter 537 of the laws of 2014, is amended to read as
44 follows:
45 (c) Notwithstanding the provisions of subdivisions (a) and (b) of this
46 section, the ten members with the largest percentage ownership interest,
47 as determined as of the beginning of the period during which the unpaid
48 services referred to in this section are performed, of every limited
49 liability company, shall jointly and severally be personally liable for
50 all debts, wages or salaries due and owing to any of its laborers, serv-
51 ants or employees, for services performed by them for such limited
52 liability company. [Before such laborer, servant or employee shall
53 charge such member for such services, he or she shall give notice in
54 writing to such member that he or she intends to hold such member liable
55 under this section. Such notice shall be given within one hundred eighty
56 days after termination of such services. An action to enforce such
A. 5501--A 19
1 liability shall be commenced within ninety days after the return of an
2 execution unsatisfied against the limited liability company upon a judg-
3 ment recovered against it for such services.] A member who has paid more
4 than his or her pro rata share under this section shall be entitled to
5 contribution pro rata from the other members liable under this section
6 with respect to the excess so paid, over and above his or her pro rata
7 share, and may sue them jointly or severally or any number of them to
8 recover the amount due from them. Such recovery may be had in a separate
9 action. As used in this subdivision, "pro rata" means in proportion to
10 percentage ownership interest. Before a member may claim contribution
11 from other members under this section, he or she shall give them notice
12 in writing that he or she intends to hold them so liable to him or her.
13 S 35. Section 1102 of the limited liability company law is amended by
14 adding a new subdivision (e) to read as follows:
15 (E) ANY PERSON WHO IS OR SHALL HAVE BEEN A LABORER, SERVANT OR EMPLOY-
16 EE OF A LIMITED LIABILITY COMPANY, UPON AT LEAST FIVE DAYS' WRITTEN
17 DEMAND SHALL HAVE THE RIGHT TO EXAMINE IN PERSON OR BY AGENT OR ATTOR-
18 NEY, DURING USUAL BUSINESS HOURS, RECORDS DESCRIBED IN PARAGRAPH TWO OF
19 SUBDIVISION (A) OF THIS SECTION THROUGHOUT THE PERIOD OF TIME DURING
20 WHICH SUCH LABORER, SERVANT OR EMPLOYEE PROVIDED SERVICES TO SUCH COMPA-
21 NY. A COMPANY REQUESTED TO PROVIDE INFORMATION PURSUANT TO THIS PARA-
22 GRAPH SHALL MAKE AVAILABLE SUCH RECORDS IN WRITTEN FORM AND IN ANY OTHER
23 FORMAT IN WHICH SUCH INFORMATION IS MAINTAINED BY THE COMPANY AND SHALL
24 NOT BE REQUIRED TO PROVIDE SUCH INFORMATION IN ANY OTHER FORMAT. UPON
25 REFUSAL BY THE COMPANY OR BY AN OFFICER OR AGENT OF THE COMPANY TO
26 PERMIT AN INSPECTION OF THE RECORDS DESCRIBED IN THIS PARAGRAPH, THE
27 PERSON MAKING THE DEMAND FOR INSPECTION MAY APPLY TO THE SUPREME COURT
28 IN THE JUDICIAL DISTRICT WHERE THE OFFICE OF THE COMPANY IS LOCATED,
29 UPON SUCH NOTICE AS THE COURT MAY DIRECT, FOR AN ORDER DIRECTING THE
30 COMPANY, ITS MEMBERS OR MANAGERS TO SHOW CAUSE WHY AN ORDER SHOULD NOT
31 BE GRANTED PERMITTING SUCH INSPECTION BY THE APPLICANT. UPON THE RETURN
32 DAY OF THE ORDER TO SHOW CAUSE, THE COURT SHALL HEAR THE PARTIES SUMMAR-
33 ILY, BY AFFIDAVIT OR OTHERWISE, AND IF IT APPEARS THAT THE APPLICANT IS
34 QUALIFIED AND ENTITLED TO SUCH INSPECTION, THE COURT SHALL GRANT AN
35 ORDER COMPELLING SUCH INSPECTION AND AWARDING SUCH FURTHER RELIEF AS TO
36 THE COURT MAY SEEM JUST AND PROPER. IF THE APPLICANT IS FOUND TO BE
37 QUALIFIED AND ENTITLED TO SUCH INSPECTION, THE COMPANY SHALL PAY ALL
38 REASONABLE ATTORNEY'S FEES AND COSTS OF SAID APPLICANT RELATED TO THE
39 DEMAND FOR INSPECTION OF THE RECORDS.
40 S 36. This act shall take effect on the thirtieth day after it shall
41 have become a law; provided, however, section thirty-four of this act
42 shall take effect on the same date and in the same manner as section 11
43 of chapter 537 of the laws of 2014, takes effect. The procedures and
44 rights created in this act may be used by employees, laborers or serv-
45 ants in connection with claims for liabilities that arose prior to the
46 effective date.
