The New York state legislature passed a bill last month that could have a significant effect on restaurant, bar and hotel owners. The bill, if signed by the governor, would allow a business and personal lien to be placed on owners, managers and some investors of a business based solely on an allegation of a wage violation. The bill applies to claims of non-payment of wages under federal as well as New York law, including claims relating to improperly taken tip credits, withheld gratuities, overtime, uniform maintenance pay, and other categories. An employee making a covered claim can obtain a lien, similar to a mechanic’s lien that is filed by contractors, and can do so prior to proving his or her claim and even though the employee was paid in full. This new law has sweeping effects, and was opposed by the New York City Hospitality Alliance. The Hospitality Alliance encouraged restaurant, hotel and bar owners to contact their representatives in Albany to fight this legislation. Though some amendments were made to the bill before it passed, it was nonetheless, according to the Hospitality Alliance, “a very unwelcome outcome.” If signed by the governor, it will become law 30 days thereafter.