§ 862-d. Violations and penalties. 1. Any commercial goods\ntransportation contractor who willfully fails to properly classify an\nindividual as an employee as provided under section eight hundred\nsixty-two-b of this article shall be subject to the civil and criminal\npenalties provided under this section. The civil penalties set forth in\nthis section shall be imposed as follows: by the commissioner where such\npenalty is based on a violation of this chapter; by the chair of the\nworkers' compensation board where such penalty is based on a violation\nof the workers' compensation law; and by the commissioner of taxation\nand finance when such penalty is based on a violation of the tax law,\nprovided that no more than one civil penalty under this section may be\nimposed per employee per incident of misclassification.\n (a) The workers' compensation board shall provide a copy of any order\nrelating to the misclassification of an employee, the intentional and\nmaterial underpayment or concealment of payroll, or the failure to\nsecure workers' compensation in the commercial goods transportation\nindustry to the commissioner and commissioner of taxation and finance no\nlater than seven days after the issuance of the order.\n (b) Notwithstanding the secrecy provisions contained in articles\nnine-A and twenty-two of the tax law, the department of taxation and\nfinance shall provide a copy of any assessment for failure to pay\nbusiness, corporate or personal income tax by an employer in the\ncommercial goods transportation industry arising out of the\nmisclassification of an employee to the commissioner and chair of the\nworkers' compensation board no later than seven days after the issuance\nof the assessment.\n (c) Upon the issuance of an order or determination by the commissioner\nfor a violation and penalties under this article, the commissioner shall\nprovide a copy of the order to the chair of the workers' compensation\nboard and the commissioner of taxation and finance no later than seven\ndays after the issuance of the order.\n 2. For the purposes of this section, the term "willfully violates"\nmeans a commercial goods transportation contractor knew or should have\nknown that his or her conduct was prohibited by this section.\n 3. Any commercial goods transportation contractor who willfully\nviolates section eight hundred sixty-two-b of this article shall be\nsubject to a civil penalty of up to twenty-five hundred dollars for the\nfirst violation per misclassified employee and to a civil penalty of up\nto five thousand dollars for each subsequent violation per misclassified\nemployee within a five year period.\n 4. In addition to civil penalties, the criminal penalties imposed on a\ncommercial goods transportation contractor who willfully violates the\nprovisions of this article shall be a misdemeanor and upon conviction\nshall be punished for a first offense by imprisonment for not more than\nthirty days or a fine not to exceed twenty-five thousand dollars and for\na subsequent offense by imprisonment for not more than sixty days or a\nfine not to exceed fifty thousand dollars.\n 5. If the commercial goods transportation contractor is a corporation,\nany officer of such corporation or shareholder who owns or controls at\nleast ten percent of the outstanding stock of such corporation who\nknowingly permits the corporation to willfully violate the provisions of\nthis article shall also be in violation of this article and the civil\nand criminal penalties herein shall attach to such officer upon\nconviction.\n 6. Any commercial goods transportation contractor subject to civil\npenalties under this article shall also be subject to any other\napplicable penalties or remedies provided by law for failure to pay any\nother statutory payment or coverage obligations, including but not\nlimited to, unemployment insurance, workers' compensation insurance, or\nbusiness, corporate or personal income tax, as follows:\n (a) for fai
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