NY
New York Assembly Bill A03382

New York 2025-2026 Regular Session

New York Assembly Bill A03382

Introduced
1/27/25  
Refer
1/27/25  
Report Pass
5/20/25  

Caption

Establishes the crime of misappropriation of payroll funds when a person knows that funds are designated for use as employee payroll funds or as payment of payroll taxes, and intentionally prevents the funds from being used for their designated purpose.

Impact

The enactment of A03382 is expected to have significant implications for both employers and payroll processing companies. By clearly defining the actions that constitute misappropriation, the bill provides a legal recourse for employees who may fall victim to payroll mismanagement or fraudulent practices. This clarity may lead to increased accountability among employers and ensure that employees receive timely payment of wages. Additionally, payroll processing companies would be exempt from liability in cases where the delay was due to investigations of potentially fraudulent transactions, which adds a layer of protection for these entities.

Summary

Bill A03382 aims to address the issue of misappropriation of payroll funds in New York. Under this legislation, a person can be charged with misappropriation if they knowingly prevent designated payroll funds from being utilized as intended, specifically for employee wages or payroll taxes. This proposed law introduces a new section (165.80) to the penal law, making such actions a class E felony. By classifying the misappropriation of payroll funds as a felony, the bill seeks to strengthen the legal framework protecting employees' rights to their earned wages.

Contention

While the intent of A03382 is to protect employees, there may be some concerns regarding its enforcement and the potential for unintended consequences. Opponents could argue that the bill may impose additional burdens on businesses, especially small employers who might struggle to comply with complex payroll regulations. Furthermore, the classification of misappropriation as a felony can elicit harsh penalties that some believe are disproportionate to the crime, especially in cases involving administrative errors rather than malicious intent. These points of contention will likely be a focal point during legislative discussions as stakeholders voice their opinions.

Summary_conclusion

Overall, A03382 represents a proactive step in reinforcing the reliability of payroll processes in New York. By criminalizing misappropriation and defining it within the penal system, the bill aims to safeguard employees' rights to their wages while balancing the responsibilities of employers and payroll companies. The discussions and potential adjustments during the legislative process will be key in shaping the final version of the bill and its ultimate impact on state law.

Companion Bills

NY S04188

Same As Establishes the crime of misappropriation of payroll funds when a person knows that funds are designated for use as employee payroll funds or as payment of payroll taxes, and intentionally prevents the funds from being used for their designated purpose.

Previously Filed As

NY A03280

Establishes the crime of misappropriation of payroll funds when a person knows that funds are designated for use as employee payroll funds or as payment of payroll taxes, and intentionally prevents the funds from being used for their designated purpose.

NY S07205

Establishes the crime of misappropriation of payroll funds when a person knows that funds are designated for use as employee payroll funds or as payment of payroll taxes, and intentionally prevents the funds from being used for their designated purpose.

NY S09130

Relates to the use of funds and payments from the IOLA fund; provides that funds and payments shall not be used for any other purpose other than as stated in section 97-v of the state finance law.

NY A10253

Relates to the use of funds and payments from the IOLA fund; provides that funds and payments shall not be used for any other purpose other than as stated in section 97-v of the state finance law.

NY S00533

Relates to the liability of payroll processing companies; provides that payroll processing companies that intentionally and wrongfully prevent the distribution of payroll shall be liable to employees that failed to receive an expected payment for an amount up to three times the expected amount; provides an action to recover damages may be maintained as a class action.

NY A03791

Relates to the liability of payroll processing companies; provides that payroll processing companies that intentionally and wrongfully prevent the distribution of payroll shall be liable to employees that failed to receive an expected payment for an amount up to three times the expected amount; provides an action to recover damages may be maintained as a class action.

NY A10649

Exempts a payroll agency that provides payroll services on behalf of another person or organization from the definition of hiring party.

NY S00432

Establishes a first permanent payroll employee tax credit which allows a business to receive a tax credit for the three years following the employment of such business' first permanent payroll employee where such credit equals a portion of the amount it costs to employ such permanent payroll employee.

NY A01755

Establishes a first permanent payroll employee tax credit which allows a business to receive a tax credit for the three years following the employment of such business' first permanent payroll employee where such credit equals a portion of the amount it costs to employ such permanent payroll employee.

NY S00037

Clarifies methods for the payment of wages and authorizes the payment of wages by use of payroll cards.

Similar Bills

No similar bills found.