Bill

A 4994

Provides grounds for attachment and relates to procedures where employees may hold shareholders of non-publicly traded corporations personally liable for wage theft

2025 Regular Session Introduced by Harry Bronson and 12 co-sponsors

Extends wage-theft liability to shareholders of closely held corporations, allowing personal recovery from individuals who control or benefit from unpaid wages.

REFERRED TO JUDICIARY

WeVote Research Nonpartisan

Bill Summary · A 4994

Summary: Bill A 4994

Overview

Bill A 4994 seeks to address wage theft by expanding liability beyond the corporate entity to the shareholders of non-publicly traded (closely held) corporations. The bill would establish grounds for attachment and create procedures that allow employees to pursue personal liability of shareholders in certain wage-theft scenarios. It is currently referred to the Judiciary Committee.

Purpose and Intent

To strengthen remedies for employees whose wages are unlawfully withheld or unpaid by closely held corporations.
To pierce or bypass the corporate form in specific wage-theft contexts, enabling individuals (shareholders) who control or benefit from the corporation to be held personally liable under defined circumstances.
To provide a clear procedural framework for attachment and collection in wage-theft cases involving shareholder liability.

Key Provisions (High-Level)

Grounds for Attachment: The bill would authorize attachment (seizure of assets) in wage-theft cases where a closely held corporation fails to pay wages and circumstances indicate that the corporate structure was used to shield individuals from liability.
Personal Liability of Shareholders: Shareholders of non-publicly traded corporations could be held personally liable for wages due to employees under specified conditions.
Procedural Framework: The bill would establish the method and process by which employees may pursue attachment and pursue shareholder liability, including potential notices, filings, and hearings.
Scope and Limitations: The provisions would specify the types of corporations affected (non-publicly traded) and set boundaries to avoid unintended broad application; details on defenses, exemptions, and procedural protections would be defined in the bill text.
Relationship to Wage-Theft Remedies: The act would complement existing wage-theft enforcement by adding a pathway to recover wages from individuals behind the corporate structure when wage obligations are not met.

Affected Parties

Employees who have experienced wage theft from a closely held corporation.
Shareholders of non-publicly traded corporations who may be personally liable under the bill’s grounds.
Closely held corporations and their officers/directors who could be implicated if the conditions for personal liability are met.
Employers and payroll administrators who must comply with wage-payment laws and related attachment procedures.

Procedural and Timeline Aspects

Status: Referred to Judiciary (as of introduction).
Introduced: February 10, 2025.
Legislative Actions: Referred to Judiciary on February 10, 2025 (listed twice in the record).

Related Bills

A 7752 (prior-session)
S 4611 (companion) — Senate counterpart

Potential Impacts and Considerations

Accountability: Could increase accountability for wage theft in closely held businesses by enabling personal recovery from shareholders.
Business Impact: May affect corporate structure choices and risk assessments for non-publicly traded firms; potential need for tighter payroll compliance and governance controls.
Due Process: Requires clear procedural safeguards to ensure shareholders are fairly treated and that attachment actions are used appropriately.
Fiscal/Administrative: Enactment would require administrative capacity to process attachments and determine shareholder liability; implementation details (timelines, fees, defenses) would be defined in the bill’s text.

Next Steps

Movement through the Judiciary Committee for consideration, potential amendments, and floor action.
Coordination with related Senate companion (S 4611) and prior-session A 7752 for alignment of provisions and timeline.

Compiled from official sources — confirm details with the bill’s official record.