S7539

The Senate passed S7539, a bill amending the Civil Practice Law and Rules, on a 41-20 roll call vote. The passage came after the chamber rejected an attempt to add an amendment on coordinated petit larceny to the underlying wage theft legislation. Sen. Palumbo appealed Acting President Persaud's ruling that an amendment creating a Class E felony for organized retail theft was nongermane to the bill. Palumbo argued the amendment was germane and necessary to combat what he called the "scourge of retail theft" in New York, citing recent violent incidents involving retail theft suspects and noting that U.S. Senate Majority Leader Chuck Schumer has called for using the RICO Act against organized retail theft rings. The appeal was defeated on a show of hands vote of 20 ayes, with the presiding officer's ruling upheld. The bill was then restored to the noncontroversial calendar and passed with 20 senators voting in opposition.

The New York State Senate passed legislation Tuesday night that expands grounds for attaching property in wage theft cases, allowing workers to freeze assets of company owners before judgment is entered. Senate Print 7539, sponsored by Sen. Ramos, amends the Civil Practice Law and Rules to add wage theft claims as a basis for pre-judgment attachment under CPLR Section 6201. The measure passed 40-22 on a largely party-line vote. Sen. Ramos argued the bill addresses rampant wage theft in New York, citing $25 million in stolen wages recovered in 2022 affecting 18,000 workers. She said the measure provides workers a rightful course of action to recover lost wages and sends a message that "no human being should work for free." However, opponents including Sen. Palumbo and Sen. Rhoads argued the bill goes too far by allowing attachment of personal assets of up to 10 company owners based solely on a wage theft accusation, without requiring proof of individual involvement, without mandatory undertakings, and before judgment is entered. Sen. Palumbo warned the measure "will create such a chilling effect on businesses" and allows plaintiffs to freeze innocent owners' property for years in litigation without consequences. Sen. Rhoads, a plaintiff's attorney, said while wage theft is serious, the bill creates an imbalance in litigation by allowing frivolous or revenge-motivated claims to proceed with asset attachment. All 22 nays came from Republican senators.