Remedies Available Under the New York Professional Employer Act
Economic Damages
To start with, unlike under other laws such as the NYSHRL, the Disability Benefits Law, and the Paid Family Benefits Law, there is no applicable state law under which a prevailing party may recover compensatory damages under the New York Professional Employer Act.
Compensatory Damages
Similarly, there is no applicable state law through which a prevailing party may recover compensatory damages under the New York Professional Employer Act.
Punitive Damages
Additionally, there is no applicable state law through which a prevailing party may recover compensatory damages under the New York Professional Employer Act.
Attorney’s Fees and Costs
On the same note, there is no applicable state law through which a prevailing party may recover compensatory damages under the New York Professional Employer Act.
Injunctive Relief
Nonetheless, injunctive relief constitutes a remedy available under this act. For instance, pursuant to N.Y. Lab. Law § 924(6), if an individual claiming to be a PEO (professional employer organization) or a PEO fails to comply with the commissioner’s order to register or renew registration, the latter may seek to prohibit the specific unlawful conduct.
“Other” Remedies
Additionally, despite the unavailability of economic, compensatory, and punitive damages, there are several “other” remedies available under the New York Professional Employer Act. For example, pursuant to N.Y. Penal Law § 80.05(2) and N.Y. Penal Law § 70.15(2), a court may impose a class B misdemeanor fine and a class B misdemeanor imprisonment, respectively. However, while the fine imposed under the first statute cannot be more than $500, the imprisonment imposed under the second statute cannot last for more than 3 months.
Additionally, pursuant to N.Y. Lab. Law § 924(7), a non-prevailing party can be held liable with a class B misdemeanor for intentionally failing to comply with the requirements for registration or renewal of the same.
Moreover, pursuant to N.Y. Lab. Law § 924(4)(b), an individual claiming to be a professional employer organization (PEO) or a client who is contracting with a PEO but whom the latter should have knowledge or should have known has had its registration revoked by the commissioner, has failed to renew its registration, or even failed to register is liable for to up to a $1000 in civil penalties for the initial violation, and up to $5000 in civil penalties for a second or any other violation that follows.
Lastly, pursuant to N.Y. Lab. Law § 924(4)(a), all entities or individuals with a 5% or greater interest in PEO, an individual claiming to be a PEO, or a PEO itself can be liable for up to $3000 in civil penalties for the initial violation, and up to $5000 for any other violation that follows.
In Part VII of the series and our blog post titled “Remedies Available under the New York False Claims Act,” we will discuss the various remedies available under this act and pursuant to N.Y. State Fin. Law §§ 187 et seq.
As usual, stay tuned for more legal guidance, training, and education. In the interim, if there are any questions or comments, please let us know at the Contact Us page!
Always Rising Above the Bar,
Isaac T.,
Legal Writer, Author, & Publisher.
