2010 New York Code
RPP - Real Property
Article 12-A - (440 - 443-A) REAL ESTATE BROKERS AND REAL ESTATE SALESMEN
442-C - Violations by salesmen; broker's responsibility.

§ 442-c. Violations by salesmen; broker's responsibility. No violation
  of  a provision of this article by a real estate salesman or employee of
  a real estate broker shall be deemed to be cause for the  revocation  or
  suspension of the license of the broker, unless it shall appear that the
  broker  had  actual knowledge of such violation or retains the benefits,
  profits or proceeds  of  a  transaction  wrongfully  negotiated  by  his
  salesman  or  employee  after  notice  of  the  salesman's or employee's
  misconduct. A broker shall be guilty of a  misdemeanor  for  having  any
  salesman  associated  with  his  firm  who  has not secured the required
  license authorizing such employment.

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