ALBANY, N.Y. (NEWS10) — New York lawmakers are crafting legislation to protect workers in the event of fraud by their payroll company.
After the sudden closure of MyPayrollHR in Clifton Park, Senate Democrats have a new set of bills aimed to protect workers.
Senate Majority Leader Andrea Stewart-Cousins said the following in a statement:
“…has severely damaged our confidence in the entire payroll industry.”
The first bill on the agenda would set criminal penalties for those who purposely misappropriate payroll and payroll tax funds. Another bill would allow workers to go after payroll processing companies for up to three times the value of their normal paycheck if it’s missed due to fraud.
“MyPayrollHR exposed how vulnerable New Yorkers are to direct deposit fraud,” Senator David Carlucci said. “We must update our laws to protect New Yorkers’ hard earned money and hold unscrupulous payroll companies accountable.”
Other legislation provides for further accountability for payroll deductions. There’s also a measure for up to a $250 tax credit for lost wages.