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NY S07776
Bill
Status
5/6/2025
Primary Sponsor
Jessica Ramos
Click for details
AI Summary
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Creates a rebuttable presumption of retaliation when an employer responds to an employee's wage or benefits claim by filing or threatening to file a claim seeking forfeiture of the employee's compensation
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Requires employers to prove by clear and convincing evidence that employee misconduct was pervasive and egregious, based on more than a single act, and not known and tolerated by the employer before any wage forfeiture can be ordered
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Limits forfeiture claims to specific misconduct: unfair competition with the employer, diverting business opportunities, or accepting improper kickbacks
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Restricts any permitted forfeiture to compensation only for pay periods during which the disloyal acts occurred, and explicitly excludes minimum wage and overtime payments from forfeiture
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Establishes a rebuttable presumption of discrimination under the Human Rights Law when an employer responds to a discrimination claim with a forfeiture counterclaim
Legislative Description
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.
Last Action
REPORTED AND COMMITTED TO FINANCE
1/28/2026