S 1514: Empowers the commissioner of labor to issue stop-work orders against employers for misclassification of employees as independent contractors or for providing false, incomplete, or misleading information to an insurance company on the number of employees of such employer.

  
  STATE OF NEW YORK ________________________________________________________________________ 1514 2025-2026 Regular Sessions  IN SENATE January 10, 2025 ___________ Introduced by Sens. HARCKHAM, HINCHEY, JACKSON, MATTERA, PALUMBO, RAMOS, ROLISON, WEBB -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to issuing stop-work orders for misclassification of employees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The labor law is amended by adding a new section 45 to read 2 as follows: 3 § 45. Misclassification of employees; stop-work orders. 1. If the 4 commissioner determines, after an investigation pursuant to the 5 provisions of this chapter, that an employer has knowingly misclassified 6 employees as independent contractors or provided false, incomplete, or 7 misleading information to an insurance company on the number of employ- 8 ees of such employer, the commissioner shall notify such employer in 9 writing of their intention to issue a stop-work order. Such notice 10 shall: 11 a. be served in a manner consistent with section three hundred eight 12 of the civil practice law and rules; 13 b. notify such employer of their right to a hearing; 14 c. notify such employer that they shall have seventy-two hours to 15 address the violation or violations before the stop-work order will be 16 issued; and 17 d. state the factual basis upon which the commissioner has based their 18 decision to issue a stop-work order and how such employer shall come 19 into compliance. 20 2. a. After receipt of such notice, the employer shall have seventy- 21 two hours to come into compliance and to notify the commissioner of such 22 compliance. Within seventy-two hours after the employer's opportunity to 23 come into compliance, if the employer has not come into compliance, the 24 commissioner shall issue a stop-work order requiring the cessation of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04513-01-5 
 S. 1514 2 1 all business operations of the employer at every site at which the 2 violation occurs. 3 b. A stop-work order shall take effect when served upon the employer 4 or when served at the worksite. 5 c. A stop-work order shall remain in effect until the commissioner 6 issues an order releasing the stop-work order upon finding that the 7 employer has come into compliance and has paid any penalty assessed. 8 3. An employer who is subject to a stop-work order shall have the 9 right to apply to the commissioner, not more than ten days after the 10 order is issued, for a hearing to contest whether the employer committed 11 the violation on which the order was based. 12 4. Failure or refusal to comply with a stop-work order issued by the 13 commissioner shall, in addition to any other penalties authorized by 14 law, result in the assessment of a penalty of not less than one thousand 15 dollars and not more than five thousand dollars for each day the employ- 16 er is found not to be in compliance. 17 5. An employee affected by a stop-work order pursuant to this section 18 shall be paid their regular rate for the period the stop-work order is 19 in place or the first ten days the employee would have been scheduled to 20 work if the stop-work order had not been issued, whichever is less, by 21 the employer that was served the stop-work order. 22 6. Stop-work orders and any additional penalties imposed under this 23 chapter against a corporation, partnership or sole proprietorship shall 24 be effective against any successor entity that has one or more of the 25 same principals or officers as the corporation, partnership or sole 26 proprietorship against which the stop-work order was issued and are 27 engaged in the same or equivalent trade or activity. 28 7. For the purposes of this section, there shall be a rebuttable 29 presumption of unlawful retaliation if an employer in any manner 30 discriminates, retaliates, or takes any adverse action against any 31 employee within ninety days of the employee initiating a complaint 32 pursuant to this article. 33 8. The commissioner shall promulgate any rules and regulations neces- 34 sary to carry out the provisions of this section. 35 § 2. This act shall take effect on the one hundred eightieth day after 36 it shall have become a law.