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On December 13, 2010, New York Gov. David Paterson signed the Wage Theft Prevention Act (the "Act") enhancing the notification obligations on New York employers. This amendment to the New York Labor Law also increases the penalties associated with violations and expands the scope of retaliation claims. The Act becomes effective April 12, 2011.
New Notice and Pay Statement Obligations and Penalties
In 2009, the New York Labor Law was amended to require employers to provide new hires with written notice of the employees' pay rate(s); overtime pay rate(s), if applicable; and regular payday. Now there is more.
Notice of Wages
All New York employers must notify each employee, in writing, at the time of hire and annually (on or before February 1) of (1) the employee's rate of pay and the basis of such pay (e.g., hourly, weekly, salary, commission); (2) the overtime rate, if applicable; (3) any allowances claimed as part of the minimum wage; (4) the regular payday; (5) the name of the employer and any "doing business as" names; and (6) the address of the employer's main office or principal place of business and a phone number. This notice must be in English and the primary language of the employee. The employee must provide a signed and dated written acknowledgment of receipt of such annual notice, and the employer must retain that for six years. To the extent information in the notice changes, employers must advise employees seven days prior to the change unless the change is documented on the employee's wage statement.
Wage Statement
In addition, with each paycheck, all New York employers must provide each employee with a wage statement that includes, among other things, the dates of work covered by the check, rate and basis of pay, gross and net wages and deductions, any allowances, and the regular hourly and overtime rate for nonexempt employees. Employers must maintain these payroll records for six years.
Penalties
Under the Act, both employees and the Commissioner of Labor (the "Commissioner") can bring an action to recover specific damages plus attorneys' fees and costs against an employer who fails to provide the notice of wages or wage statement. Specifically, an employee who is not provided with a notice of wages within 10 business days of his or her first date of employment may seek $50 for each workweek he or she does not receive such notice, up to $2,500. An employee who is not provided with a wage statement may seek $100 for each workweek of such violation, up to $2,500. Notably, the Act empowers the Commissioner to recover these civil penalties without any cap.
Heightened Penalties and Powers of the Commissioner
In addition to the penalties it provides for noncompliance with the notice and wage statement requirements, the Act increases the penalties associated with other violations of the New York Labor Law and grants the Commissioner additional enforcement power. Some highlights of the Act follow:
Expanded Retaliation Claims
Employers also must beware of the newly expanded retaliation provisions under the Act that will protect not only those employees who complain about wage violations but employees who the employer believes have complained. Such complaint need not be to the employer or the Commissioner but may now be to the Attorney General or "any other person." In addition to the existing forms of retaliation, employers are now explicitly prohibited from threatening an employee who complains. The Act makes it clear that an employee need not refer to a specific provision of the law when complaining.
Repercussions for Employers
New York employers need to understand these upcoming changes and take steps to ensure that their policies and practices comply with the expanded New York Labor Law. Specifically, employers must draft compliant wage notices and statements or revise their existing documents to comply with the Act. Employers should also ensure that their human resources personnel and management employees understand the prohibition on retaliation related to employees who complain about their wages.
Day Pitney Attorneys Daniel Schwartz, Michael Lane and Lindsey Viscomi authored the article, "Don't Be Late Paying Terminated Employees in Massachusetts," for Law360 Employment Authority.
Day Pitney Employment and Labor attorneys Glenn Dowd and Lindsey Viscomi will be presenting "Critical HR Transactions," at the CBIA 2022 Human Resources Conference on March 17 at the Trumbull Marriott Shelton.
Employment and Labor attorneys Heather Weine Brochin, Michael T. Bissinger, Howard Fetner and Trisha Efiom co-authored the article, "Keeping Up With New York's New Employment Laws," published by Employment Benefit Plan Review.
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Day Pitney Employment and Labor Partner Rachel Gonzalez was featured in the Diverse Lawyers Network newsletter for being a recipient of the Executive Women of New Jersey Salute to the Policy Makers Award.
Day Pitney Press Release
Employment and Labor Partner Glenn W. Dowd is quoted in the Hartford Business Journal article, "Many CT Businesses Breathe 'Sigh of Relief' After Federal Vaccine Mandate is Withdrawn."
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Attorneys Kritika Bharadwaj, Benjamin E. Haglund, Theresa A. Kelly, Naju R. Lathia and Elizabeth J. Sher represented the firm at the South Asian Bar Association of New Jersey (SABA-NJ) 2021 Annual Gala on October 1 at The Marigold in Somerset, NJ.
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This website may use cookies, pixel tags and other passive tracking technologies, including Google Analytics, to improve functionality and performance. For more information, see our Privacy Policy. By using our website, you are consenting to our use of these tracking technologies. You can alter the configuration of your browser to refuse to accept cookies, but if you do so, it is possible that some areas of web sites that use cookies will not function properly when you view them. To learn more about how to delete and manage cookies, refer to the support instructions for each browser (e.g., see AllAboutCookies.org). You may locate Google Analytics' currently available opt-outs for the web here.