N.Y. Labor Law § 924: Violations, penalties, procedures

§ 924. Violations, penalties, procedures. 1. Any professional employer

organization or person purporting to be a professional employer

organization who has failed to comply with the registration requirements

of section nine hundred eighteen of this article shall be deemed to have

violated this article.

2. Any professional employer organization or person purporting to be a

professional employer organization who has failed to comply within the

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

with the registration requirements of section nine hundred eighteen of

this article shall be deemed to have violated this article.

3. Any client who enters into a professional employer agreement with a

professional employer organization or person purporting to be a

professional employer organization, who is required to register, but

whom the client knows or should have known has failed to register,

failed to renew its registration or had its registration revoked by the

commissioner shall be deemed to have violated this article.

4. (a) The commissioner may impose a civil penalty upon a professional

employer organization, a person purporting to be a professional employer

organization, and all persons or entities that own a five percent or

greater interest in the professional employer organization, that have

been deemed to have violated this article, for no more than three

thousand dollars for the initial violation, and for no more than five

thousand dollars for a second or subsequent violation.

(b) The commissioner may impose a civil penalty upon any client

described in subdivision three of this section that has been deemed to

have violated this article, for no more than one thousand dollars for

the initial violation, and for no more than five thousand dollars for a

second or subsequent violation.

(c) The order imposing such civil penalty may be served personally or

by certified mail at the last known mailing address of the person being

served. Such order shall be in writing and shall describe the nature of

the violation, including reference to the provisions of subdivisions

one, two and three of this section alleged to have been violated.

5. An order issued under this section shall be final and not subject

to review by any court or agency unless review is had pursuant to

section one hundred one of this chapter. Provided that no proceeding for

administrative or judicial review as provided in this chapter shall then

be pending and the time for initiation of such proceeding shall have

expired, the commissioner may file with the county clerk of the county

where the person against whom the penalty has been imposed has a place

of business the order of the commissioner or the decision of the

industrial board of appeals containing the amount of the civil penalty.

The filing of such order or decision shall have the full force and

effect of a judgment duly docketed in the office of such clerk. The

order or decision may be enforced by and in the name of the commissioner

in the same manner, and with like effect, as that prescribed by the

civil practice law and rules for the enforcement of a money judgment.

6. If any professional employer organization or person purporting to

be a professional employer organization shall have failed to comply

within twenty days of an order by the commissioner to register or renew

registration, the commissioner may seek to enjoin such unlawful

activity, pursuant to the civil practice law and rules.

7. The intentional failure of a professional employer organization or

person purporting to be a professional employer organization to comply

with the registration requirements of section nine hundred eighteen of

this article shall be a class B misdemeanor. The officers and agents of

a professional employer organization or person purporting to be a

professional employer organization who knowingly permit such

organization to violate the registration requirements of section nine

hundred eighteen of this article shall be guilty of a class B

misdemeanor.