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.