2023 New York Laws › LAB - Labor › Article 31 - New York Professional Employer Act › 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.