New York State Wage Theft Prevention Act

Effective April 12, 2011, the New York State Wage Theft Prevention Act (S 8380/A 11726) will require employers to annually provide a written notice of wages and other information to each employee. This legislation is intended to addresses the failure of some employers to pay statutorily-mandated minimum wages and overtime.

Upon hire, and on or before February 1 of each following year, employers must give written notice to employees of their rates of pay, basis of pay rate, how the employee will be paid (hour, shift, day, week, salary, etc.), any allowances claimed against the minimum wage (tips or meals, etc.), and the regular payday. The notice must be in English and in the employee’s primary language.

Current law requires that employers obtain a written acknowledgement that information similar to this is provided in writing. The NYS Department of Labor has interpreted the new law as requiring employers to provide exempt employees with the basis for their exemption.

Employers must maintain all required notices, statements and acknowledgments for six years as is the current requirement for payroll records. Failure to provide the required notice within ten business days from the employee’s start date may bring a claim to recover $50 for each workweek that a violation occurs.

In addition, the law requires employers to provide wage statements to employees with each paycheck, specifying: date of the applicable pay period; employee’s name; employer’s name, address and phone number; allowances, if any; gross wages; deductions; and net wages. If an employer uses a payroll service, the service must supply this information.

For nonexempt employees, the statement must also include the applicable regular and overtime pay rates, in addition to the number of regular and overtime hours worked during the pay period.

Finally, the law also strengthens the Labor Law’s anti-retaliation protections so that “any person” found to have engaged in unlawful retaliation must pay damages of up to $10,000 along with the costs and attorney’s fees.

To read more, go to www.labor.ny.gov/workerprotection/laborstandards/workprot/lshmpg.shtm.

Attorney Allen Breslow specializes in labor, benefits and employee relations law, and offers his services to NPCC members at a reduced cost. For information contact him at abreslow@breslowlaborlaws.com or 631-543-1191. This article should not be construed as providing legal advice. If legal advice is required, the service of a competent professional should be sought. Legal advice can and should only be rendered on specific facts.

This article originally appeared in the March 2011 issue of New York Nonprofits, the monthly publication of the Nonprofit Coordinating Committee of New York, Inc. www.npccny.org