This year’s legislative session announced a new bill that would allow a lien to be placed on owners, top 10 investors and managers of a company in connection with the initial stages of a wage and hour lawsuit.

The bill purports to create a remedy for all employees who suffer wage theft at the hands of their employers. Governor Cuomo will soon decide whether to veto the bill or sign it into law.

Thanks to many restaurant advocates including the NYC Hospitality Alliance, the bill was modified since its initial introduction. The NYC Hospitality Alliance, in particular, fought hard to secure the following key amendments, among others:

• Limiting the lien to the employee and not to a putative class  
• Limiting the definition of a “wage claim”
• Extinguishing liens when the employer prevails or the employee fails to pursue the underlying wage claim 
• Penalizing “willful” exaggeration of a claim
• Removes burden of proof requirement on defendant
• Limiting the filing of employee liens to three years after the end of employment
• Limiting an employee’s ability to inspect the records of a private corporation and/or LLC
• Limiting an employee’s ability to inspect the records of an LLC

However, the bill will have significant impact on restaurateurs fending off these lawsuits.

The NYC Restaurant Adviser will continue to track the progress of the Lien Bill and will report on further updates.