N.Y. Labor Law § 348: Powers of commissioner; surety bond; civil and criminal penalties

§ 348. Powers of commissioner; surety bond; civil and criminal

penalties. 1. If an order has been issued by the commissioner pursuant

to section two hundred eighteen or two hundred nineteen of this chapter

within the previous five years to any person engaged as an employer in

the apparel industry directing compliance with any provision of article

six or nineteen of this chapter and such order has not been revoked or

annulled on review and the time for review has expired, or if it shall

appear to the commissioner that any person engaged as an employer or as

an agent or officer of a corporate employer in the apparel industry has

within the previous five years been convicted of a violation of any

provision of article six or nineteen of this chapter, or if it shall

appear that any person engaged as an employer in the apparel industry

has within the previous five years failed to comply within the time

specified by law with an order issued by the commissioner to comply with

the registration requirements of this article, the commissioner may

demand that such employer deposit with him a surety bond either in a sum

equal to his annual payroll, as determined by the commissioner or in the

discretion of the commissioner, in the sum of fifty thousand dollars.

Such bond shall be payable to the commissioner and shall be conditioned

that the employer and the officers thereof will, for a period of five

years, maintain full compliance with this article and articles six and

nineteen of this chapter, and shall be further conditioned upon the

payment by the employer of all judgments which may be recovered against

him pursuant to the provisions of this chapter. If within ten days after

demand for such bond, which demand shall be either personally served or

made by certified mail directed to the residence or last known business

address of the employer, such employer shall fail to deposit the same,

the employer shall be thereafter liable for a civil penalty of one

thousand dollars per day until the furnishing of the bond or cessation

of business by the employer, which civil penalty shall be payable to the

commissioner. The commissioner may bring an action in any court of

appropriate jurisdiction to compel the employer and the officers thereof

to furnish such a bond and to recover all civil penalties accrued.

2. Every person engaged as an employer, or any officer or agent of any

corporation in the apparel industry who knowingly fails to comply with

an order issued under subdivision one of this section shall be guilty of

a misdemeanor and upon conviction therefor shall be fined not less than

one hundred nor more than ten thousand dollars or imprisoned for not

more than one year or punished by both such a fine and imprisonment for

each such offense.