What Is Carlos' Law in New York?

Carlos' Law is a New York State law that took effect in January 2023. It raises the criminal penalties for construction companies and contractors when their negligence kills or seriously injures a worker. Fines now run from $300,000 to $1,000,000. The old maximum was just $10,000. The law also covers subcontractors, day laborers, and undocumented workers.

The law changes New York's Penal Law. Now corporations can be held criminally responsible when their conduct kills or seriously hurts someone on a construction site. It is named for Carlos Moncayo, a 22-year-old worker who was buried alive in a Manhattan trench collapse in 2015. This article explains what Carlos' Law in New York does in plain English. It also covers who the law protects and what to do after a construction accident. And it explains how the law connects to the civil claims that workers actually rely on for money.

At The Orlow Firm, we have represented injured construction workers across New York City for more than 40 years. Many were hurt in the exact kinds of preventable accidents this law was written to stop.

The Story of Carlos Moncayo

On April 6, 2015, Carlos Moncayo was working at a construction site in Manhattan's Meatpacking District. He was a 22-year-old immigrant from Ecuador, and he worked for a company called Harco Construction. He was ordered into a trench roughly 13 feet deep. Safety inspectors had already cited the trench because it was unreinforced. Nothing was holding back the surrounding soil.

The trench collapsed. Moncayo was buried alive and died at the scene.

Harco Construction was convicted of second-degree manslaughter, criminally negligent homicide, and reckless endangerment. A criminal conviction of a corporation after a worker's death is rare. Yet under the law at the time, the most a corporation could be fined for a felony was just $10,000. That is exactly what Harco paid. Prosecutors and labor advocates said the penalty was far too small for the death of a young worker. Critics called the amount little more than a rounding error for a construction company.

Moncayo's family worked with labor organizers and worker-safety advocates to close that gap. The campaign took roughly seven years. The bill was introduced and reintroduced several times before both chambers of the Legislature passed it in 2022. Governor Kathy Hochul signed it into law on December 23, 2022, and it took effect in January 2023.

What Carlos' Law in New York Actually Changed

Carlos' Law (Senate Bill S621B / Assembly Bill A4947B) does not create a brand-new criminal code. Instead, it amends three existing sections of the New York Penal Law: sections 20.20, 60.27, and 80.10. The goal was to make corporate criminal liability for worker injuries actually mean something. (NY Senate Bill S621B)

Here is what those amendments changed.

Dramatically Higher Penalties for Employers

The headline change is the penalty. A corporation once faced a maximum fine of $10,000. The Carlos' Law penalties for employers are now:

• Felony (a worker's death or serious physical injury): minimum fine of $500,000, maximum fine of $1,000,000
• Class A misdemeanor: minimum fine of $300,000, maximum fine of $500,000

For felonies, that is a 50-fold jump over the old $10,000 ceiling. The point is simple. A fine big enough to be felt is a fine that changes behavior on a job site.

A Clear Standard for Corporate Criminal Liability

Carlos' Law spells out, in Penal Law section 20.20, when a corporation can be held criminally responsible. A company can be liable when it "negligently, recklessly, intentionally, or knowingly" causes the death or serious injury of a worker on the job. The law includes ordinary negligence, not just reckless or intentional conduct. So it covers far more unsafe job sites than the criminal code did before.

A Broader Definition of "Worker"

The law defines "worker" broadly on purpose. It covers any person who is "paid, owed, or who receives any compensation, wages, or remuneration for labor, whether as an employee, consultant, independent contractor, or otherwise."

That language was chosen for a reason. It clearly reaches subcontractors, day laborers, and undocumented workers. Those groups used to sit in a legal gray area. Say a company put someone to work on a dangerous site. It can no longer argue that the worker does not "count" because of how they were classified or paid.

A Broader Definition of Who Can Be Held Responsible

Carlos' Law also widens the circle of who can face liability. It reaches "any person, partnership, labor broker, general contractor, or other business entity." It also reaches any subcontractor or permit or license holder. That includes anyone involved in planning, contracting, hiring, or supervising workers.

In practice, a general contractor can no longer protect itself just by subcontracting out the most dangerous work. Responsibility follows control over the job site, not paperwork.

Restitution to Injured Workers

The amendment to Penal Law section 60.27 lets a criminal court order a guilty corporation to pay restitution. That money goes directly to injured workers or to the families of those who were killed. This is one of the few ways the criminal side of the law can put money in a worker's hands. That matters when we look at the limits of the statute below.

Construction Worker Rights Under Carlos' Law in New York

Carlos' Law protects construction workers throughout New York State. The protection does not depend on immigration status or union membership. It covers:

• Employees, subcontractors, independent contractors, consultants, and day laborers (anyone paid for labor on a job site)
• Workers on both private and public construction projects
• Documented and undocumented workers alike

The protection for undocumented workers deserves a closer look. New York law has long been clear on this point. Immigration status does not stop an injured worker from bringing a personal injury claim. Carlos' Law carries that same principle into the criminal protections it creates. An employer cannot dodge responsibility for an unsafe site by pointing to a worker's immigration status.

This matters in real cases. The Orlow Firm has recovered substantial compensation for undocumented workers injured on the job. In one case, we recovered $2,474,000 for an undocumented worker who was electrocuted on a scaffold and fell. Prior results do not guarantee a similar outcome.

One point is important here. Carlos' Law is a criminal statute that punishes negligent employers. It works separately from the civil protections that injured workers rely on for money. Those civil protections are mainly New York Labor Law sections 200, 240, and 241. The next section explains why that difference matters so much.

What Carlos' Law Does NOT Do, and Why Civil Claims Still Matter

Carlos' Law is criminal legislation, and criminal cases are not built to pay the injured. The fines a corporation pays under this law usually go to the State, not to the worker. Apart from a restitution order, a criminal prosecution will not pay an injured worker's medical bills or replace lost wages on its own.

That is why injured construction workers still need to seek money through the civil and workers' compensation systems. There are two main paths:

• Workers' compensation, which provides medical coverage and partial wage replacement regardless of fault
• A civil personal injury lawsuit, usually brought under New York Labor Law sections 200, 240, or 241 against owners and contractors

Be realistic about enforcement, too. Criminal prosecutions of corporations are still uncommon. Carlos' Law has not turned every job-site tragedy into a criminal case. Much of its value is deterrence. It makes companies think twice about cutting corners. The convictions that follow are still fairly rare.

Even so, Carlos' Law can help an injured worker's civil case in a few indirect ways:

• A criminal conviction puts corporate negligence on the official record. That makes it harder for an insurer to downplay or deny a related civil claim.
• The threat of a six- or seven-figure criminal fine gives a company more reason to settle civil claims rather than drag them out.
• Where criminal negligence has already been proven, courts and juries may take the underlying conduct more seriously.

Here is the critical takeaway. Do not wait for a criminal investigation to finish before you pursue a civil claim. Criminal and civil matters run on separate timelines. Your civil deadlines keep running no matter what prosecutors do.

Deadlines: Do Not Wait to Act

Time limits in New York are strict. Missing one can permanently end an otherwise valid claim. The most important deadlines for construction accident cases include:

• Personal injury lawsuit: generally three years from the date of injury under CPLR section 214. (NY Courts: Statute of Limitations Reference)
• Wrongful death claim: generally two years from the date of death under EPTL section 5-4.1.
• Claims against a public entity (such as a city or state agency): you must file a Notice of Claim within 90 days of the accident under General Municipal Law section 50-e. This filing must come before any lawsuit can move forward. (General Municipal Law section 50-e)
• Workers' compensation: claim benefits as soon as possible, because delay can put your eligibility at risk.

The 90-day Notice of Claim deadline is especially easy to miss, and it is especially unforgiving. Many New York City construction projects involve public agencies or public property. An injured worker can lose the right to sue just by waiting too long to file a single document.

Steps to Take After a Construction Accident

If you are hurt on a construction site, the next few days matter. The steps you take can affect both your recovery and any future claim. Consider these steps:

1. Get medical attention right away, even if the injury feels minor. Prompt treatment protects your health and creates a medical record tied to the accident.
2. Report the accident in writing to your supervisor or site manager, and keep a copy.
3. Document the scene. Take photos and video of the conditions, the equipment, and any missing or inadequate safety measures.
4. Collect witness information, including the names and phone numbers of anyone who saw what happened.
5. Do not give a recorded statement to an insurance adjuster before you speak with an attorney.
6. Keep your records, such as medical bills, proof of lost wages, and any out-of-pocket costs.
7. Speak with a construction accident attorney promptly. The earlier a lawyer gets involved, the easier it is to preserve evidence before a site is cleaned up or changed.

Acting early also shows why these cases can carry real value when handled well. In one matter, The Orlow Firm recovered $3,375,000 for a construction worker who fell roughly 12 feet from a ladder and needed neck and back surgery. Prior results do not guarantee a similar outcome.

Frequently Asked Questions About Carlos' Law in New York

Is Carlos' Law a civil or criminal law?

Carlos' Law is a criminal law. It amends the New York Penal Law to impose criminal fines on corporations and contractors whose negligence causes a worker's death or serious injury on a New York construction site. It does not create a new right to sue for money. Injured workers still seek damages through workers' compensation and civil lawsuits under the Labor Law.

Can I sue my employer under Carlos' Law?

No. Prosecutors enforce Carlos' Law, not individual workers. It results in fines paid mostly to the State, not damages paid to you. To recover money after a construction accident in New York, an injured worker usually files a workers' compensation claim and, where appropriate, a civil lawsuit against owners and contractors under New York Labor Law sections 200, 240, or 241.

What is the difference between Carlos' Law and Labor Law 240?

Labor Law section 240 (the "Scaffold Law") is a civil statute that lets injured construction workers recover money from owners and contractors for gravity-related accidents such as falls. Carlos' Law is a criminal statute. It punishes companies with large fines for negligence that kills or seriously injures workers. One pays the worker; the other punishes the wrongdoer. The two can run alongside each other after the same accident.

Does Carlos' Law apply only to union members?

No. Carlos' Law protects construction workers in New York regardless of union membership and regardless of immigration status. Its definition of "worker" reaches employees, independent contractors, consultants, subcontractors, and day laborers: nearly anyone paid for labor on a construction site.

What happened to the company that killed Carlos Moncayo?

Harco Construction was convicted of second-degree manslaughter, criminally negligent homicide, and reckless endangerment after Carlos Moncayo's 2015 death in a Manhattan trench collapse. Under the law at the time, the most a corporation could be fined was $10,000, and that is what Harco paid. The public anger over that outcome drove the multi-year campaign that produced Carlos' Law in New York.

Sources & Official Resources

New York Laws Cited

1. NY Penal Law section 20.20 — Corporate Criminal Liability
2. NY Penal Law section 60.27 — Restitution and Reparation
3. NY Penal Law section 80.10 — Fines for Corporations
4. CPLR section 214 — Three-Year Statute of Limitations (Personal Injury)
5. EPTL section 5-4.1 — Wrongful Death Statute of Limitations
6. General Municipal Law section 50-e — Notice of Claim Requirement

Legislation 7. NY Senate Bill S621B — Carlos' Law (enacted)

Contact The Orlow Firm

Were you or someone you love hurt or killed in a construction accident? Knowing the difference between criminal accountability and your right to compensation is an important first step. Carlos' Law shows how seriously New York now treats unsafe job sites. But the money that pays your medical bills and replaces your lost income comes from the civil and workers' compensation claims you bring. The Orlow Firm has stood up for injured construction workers, including subcontractors and undocumented workers, throughout Queens and New York City for more than 40 years.

Call (646) 647-3398 for a free consultation. We work on contingency; you pay nothing unless we win.

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This article provides general information and is not legal advice. Every case is different. Contact an attorney to discuss your specific situation.