New York S 7776: Enacts the "faithless servant reform act"

Bill Text

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 Speaker Carl E. Heastie

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S07776 Summary:

BILL NOS07776A

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SAME ASSAME AS A08336-A

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SPONSORRAMOS

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COSPNSR

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MLTSPNSR

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Add §§215-d & 198-f, Lab L; add §296-e, Exec L

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Enacts the "faithless servant reform act", creating a rebuttable presumption of retaliation or discrimination for certain actions of an employer; provides that the employer maintains the burden of proof in certain actions against an employee; limits an employer's remedy of forfeiture against an employee's compensation.

Go to top S07776 Actions:

BILL NOS07776A

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05/06/2025REFERRED TO LABOR

05/20/2025REPORTED AND COMMITTED TO FINANCE

06/06/2025AMEND AND RECOMMIT TO FINANCE

06/06/2025PRINT NUMBER 7776A

01/07/2026REFERRED TO LABOR

01/28/2026REPORTED AND COMMITTED TO FINANCE

Go to topS07776 Committee&nbspVotes:

Go to topS07776 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS07776 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 7776--A

 2025-2026 Regular Sessions

 IN SENATE

 May 6, 2025
 ___________

 Introduced by Sen. RAMOS -- read twice and ordered printed, and when
 printed to be committed to the Committee on Labor -- reported favora-
 bly from said committee and committed to the Committee on Finance --
 committee discharged, bill amended, ordered reprinted as amended and
 recommitted to said committee

 AN ACT to amend the labor law and the executive law, in relation to
 enacting the "faithless servant reform act"

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Short title. This act shall be known and may be cited as
 2 the "faithless servant reform act".
 3 § 2. Legislative intent. The purpose of this act is to safeguard all
 4 employees from retaliatory legal actions by employers in the context of
 5 employment disputes and to ensure that all claims of employee disloyalty
 6 are substantiated, narrowly limited, and consistently and appropriately
 7 applied. The second purpose of this act is to ensure that even in the
 8 very limited class of cases where some forfeiture of employee compen-
 9 sation may otherwise be permissible under this act, such forfeiture
 10 shall be limited to compensation for pay periods during which the
 11 disloyal acts occurred and shall not encompass any part of an employee's
 12 minimum wage or overtime compensation.
 13 § 3. The labor law is amended by adding a new section 215-d to read as
 14 follows:
 15 § 215-d. Prohibited retaliation; additional provisions. Rebuttable
 16 presumption of retaliation. In any action where an employee asserts a
 17 claim under this chapter, for unpaid wages, benefits, or wage supple-
 18 ments, and the employer responds by filing or threatening to file a
 19 claim, counterclaim, or affirmative defense seeking the forfeiture of
 20 any employment compensation, there shall be a rebuttable presumption
 21 that such employer's action is retaliatory under section two hundred
 22 fifteen of this article.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05454-04-5

 S. 7776--A 2

 1 § 4. The labor law is amended by adding a new section 198-f to read as
 2 follows:
 3 § 198-f. Limitations on forfeiture of wages, benefits, or wage supple-
 4 ments. 1. Burden of proof for employers. (a) The forfeiture of any
 5 unpaid wages, benefits, or wage supplements shall not be an available
 6 remedy to an employer against an employee arising from within the scope
 7 of the employment relationship, unless such employer proves by clear and
 8 convincing evidence that:
 9 (i) such employee's conduct was so pervasive and egregious as to
 10 negate the central purpose of the employment relationship;
 11 (ii) such forfeiture is based on more than a single act of such
 12 employee; and
 13 (iii) such employer did not know of and tolerate such employee's
 14 conduct.
 15 (b) Forfeiture of unpaid wages, benefits, or wage supplements under
 16 paragraph (a) of this subdivision shall be limited to instances where
 17 the employee unfairly competes with the employer, diverts business
 18 opportunities away from such employer to such employee to the financial
 19 detriment of such employer, or accepts