BILL NUMBER: S6775
SPONSOR: JACKSON
 
TITLE OF BILL:
An act to amend the labor law, in relation to including bonus compen-
sation in the definition of wages and forfeit of wages
 
PURPOSE:
Labor Law 190(1) does not define bonus compensation as wages even if
such bonus compensation is contractually due the employee and is fully
earned. The bill corrects this defect in the law.
 
SUMMARY OF PROVISIONS:
The bill provides that bonus compensation, if fully earned, will be
treated as any other form of wages.
 
JUSTIFICATION:
The Court of Appeals has held that bonus compensation is wages only if
it is akin to commissions. This is unrealistic for many employees and
contrary to the law in other States. Many employees who are not in sales
have their bonus determined according to a formula based on firm profit.
For example, there is no reason why stock brokers' bonuses should
receive protection as wages but the same is not true for the bonuses of
stock analysts or any other employees who receive bonuses based on a
favorable evaluation of their performance rather than based on specific
sales.
 
LEGISLATIVE HISTORY:
2023-2024: S.2051 - Referred to Labor/A.4283 - Referred to Labor
2021-2022: S.1998 - Referred to Labor/A.262 - Referred to Labor
2019-2020: S.7254 - Referred to Labor/A.391 - Referred to Labor
2017-2018: A.2500 - Referred to Labor
2015-2016: A.768 - Referred to Labor
2013-2014: A.7619 - Referred to Labor
 
STATE AND LOCAL FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S6775: 190 labor law, 190(1) labor law