S2078 Business License Suspension for Wage Theft
Summary
New York State Senate Bill S2078, sponsored by Sen. Shelley B. Mayer, passed the Senate and proposes to authorize the Commissioner of Labor to direct licensing agencies to suspend or deny business licenses to employers convicted of wage theft for up to two years. The bill also provides courts with a mechanism to prevent ongoing wage theft during pending prosecutions and establishes successor business liability to prevent evasion through corporate restructuring.
“Requires or allows licensing entities to suspend business licenses for certain businesses that are charged or convicted of wage theft”
Employers holding state-issued business licenses in New York should review their wage and hour compliance programs now, as this bill would create a direct link between wage theft convictions and license suspension. Construction, food service, and hospitality employers with significant labor workforces face the highest exposure if this bill becomes law. An Assembly companion bill (A7405) indicates concurrent legislative interest, suggesting this proposal has momentum.
What changed
S2078 adds new definitions to Labor Law Section 190 including "successor business," "agency," and "license," and expands Section 196 to require licensing entities to consider wage theft violations when issuing, suspending, or revoking licenses. The bill also adds new Criminal Procedure Law provisions allowing courts to impose license suspension conditions on businesses charged with wage theft during prosecution. Employers operating in New York under state-issued licenses who are convicted of wage theft could face license suspension or denial for up to two years. Businesses that attempt to evade wage theft judgments by restructuring as successor entities remain subject to the same licensing consequences.
Archived snapshot
Apr 21, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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Senate
Bill
S2078
2025-2026 Legislative Session Requires or allows licensing entities to suspend business licenses for certain businesses that are charged or convicted of wage theft
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Sponsored By
Shelley B. Mayer
(D, WF) 37th Senate District
Current
Bill Status
- Passed Senate
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co-Sponsors
Robert Jackson
(D, WF) 31st Senate District
2025-S2078
(ACTIVE)
- Details
See Assembly Version of this Bill: A7405 Law Section: Labor Law Laws Affected: Amd §§190, 196, 198-a & 662, Lab L; add §§380.98 & 530.15, amd §500.10, CP L Versions Introduced in 2023-2024 Legislative Session: S9951
2025-S2078
(ACTIVE)
- Summary
Requires or allows licensing entities to suspend business licenses for certain businesses that are charged or convicted of wage theft; establishes reporting requirements for wage theft convictions.
2025-S2078
(ACTIVE)
- Sponsor Memo
BILL NUMBER: S2078
SPONSOR: MAYER
TITLE OF BILL:
An act to amend the labor law and the criminal procedure law, in
relation to business license suspensions resulting from wage theft
PURPOSE OF BILL:
To deter wage theft by permitting the Commissioner of Labor to direct
the relevant agency to suspend or deny to an employer convicted of wage
theft a license to do business in the state for up to two years, and to
provide courts with a mechanism to ensure that ongoing wage theft does
not occur while a charge of wage theft is pending prosecution.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends section 190 of the Labor Law to add definitions for
"successor business," "agency," and "license."
Section 2 amends subdivision one of section 196 of the Labor Law to add
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2025-S2078
(ACTIVE)
- Bill Text download pdf
S T A T E O F N E W Y O R K
2078
2025-2026 Regular Sessions
I N S E N A T E
January 15, 2025
Introduced by Sen. MAYER -- read twice and ordered printed, and when
printed to be committed to the Committee on Labor
AN ACT to amend the labor law and the criminal procedure law, in
relation to business license suspensions resulting from wage theft
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 190 of the labor law is amended by adding three new
subdivisions 10, 11 and 12 to read as follows:
10. "SUCCESSOR BUSINESS" MEANS AN ENTITY ENGAGED IN WORK THAT IS
SUBSTANTIALLY SIMILAR TO THAT OF THE PREDECESSOR, WHERE THERE IS
SUBSTANTIAL CONTINUITY OF OPERATION WITH THAT OF THE PREDECESSOR.
11. "AGENCY" MEANS ANY AGENCY, DEPARTMENT, BOARD, OR COMMISSION OF THE
STATE, OR OF ANY POLITICAL SUBDIVISION OF THE STATE, THAT ISSUES A
LICENSE FOR THE PURPOSES OF OPERATING A BUSINESS WITHIN THE STATE.
12. "LICENSE" MEANS ANY AGENCY PERMIT, CERTIFICATE, APPROVAL, REGIS-
TRATION, CHARTER, OR SIMILAR FORM OF AUTHORIZATION THAT IS REQUIRED BY
LAW AND ISSUED BY ANY AGENCY FOR THE PURPOSES OF OPERATING A BUSINESS
WITHIN THE STATE. "LICENSE" SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO:
A. A CERTIFICATE OF INCORPORATION ISSUED PURSUANT TO SECTION FOUR
HUNDRED TWO OF THE BUSINESS CORPORATION LAW, INCLUDING A CERTIFICATE OF
INCORPORATION FOR A BENEFIT CORPORATION ISSUED PURSUANT TO SECTION ONE
THOUSAND SEVEN HUNDRED THREE OF THE BUSINESS CORPORATION LAW, OR A
CERTIFICATE OF AUTHORITY ISSUED PURSUANT TO SECTION ONE THOUSAND FIVE
HUNDRED THIRTY OF THE BUSINESS CORPORATION LAW;
B. ARTICLES OF ORGANIZATION ISSUED PURSUANT TO SECTION TWO HUNDRED
THREE OF THE LIMITED LIABILITY COMPANY LAW, OR A CERTIFICATE OF AUTHORI-
TY ISSUED PURSUANT TO SECTION EIGHT HUNDRED FIVE OF THE LIMITED LIABIL-
ITY COMPANY LAW;
C. A CERTIFICATE OF INCORPORATION ISSUED PURSUANT TO SECTION FOUR
HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW, OR A CERTIFICATE OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05532-01-5
S. 2078 2
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