Undertaking on Appeal for Section 625 NY Labor Law Code

This blog is concerned with an undertaking on appeal for Section 625 of the New York Labor Law Code. This is when the Department of Unemployment Benefits assesses an underpayment and determines that a company owes an amount for underpayment of funds to them.

A company receives a summons determining that they owe the money. They then have to appeal the decision if they wish to dispute this amount, and must post a bond for the appeal. Without it bonded, the courts will not entertain the appeal. The undertaking must be in a sum sufficient to cover the said amount assessed, interest, penalties, costs, and charges as aforesaid as a condition precedent to the taking of an appeal. The Appeal is made to the Appellate Division, Third Department in the State of New York.

The client receives a letter from the State of New York, Office of the Attorney General, stating that pursuant to Section 625 of the Labor Law, they have determined the sum of the unpaid amount. They provide a calculation for this sum and also require an undertaking to secure this sum. The undertaking or security in this situation can either be a cash deposit with the court or it can be in the form of a surety bond. In addition to the amount owed the court also requires $250 for possible court costs and future ongoing interest.

In order for my office to review the bond for this situation where we need to look at a client’s financials, we need a copy of the letter from the State of New York detailing the current amounts owed and a reference that requires the undertaking. Without the undertaking, the court will not entertain the appeal for this type of situation. Thus, if you wish to appeal, you must file the security either in the form of a surety bond or a cash deposit. The financials will allow the surety to determine whether or not collateral will be required. If the client does not wish to provide a financial statement, they can deposit collateral with the surety.

It is the client’s right to appeal, and if you need to appeal for Section 625, you also need an undertaking. Give me a call to have my office help you with that undertaking.