A bill that would amend New York’s Wage Theft Prevention Act (the “Act”) awaits Gov. Andrew Cuomo’s signature. The changes offer both good news and bad news for New York employers.
Originally enacted into law in 2011, the Act aims to protect low-wage workers from unscrupulous employers who may attempt to pilfer their pay by mandating the provision of certain wage-related information to employees, including the employee’s rate of pay, how the employee’s pay is calculated, and the employee’s regular pay day. However, critics maintain that it overly burdens upstanding New York businesses.
Under the proposed amendment passed by both houses of the New York State Legislature in June, employers will no longer be required to give written notice of wage rates to all employees by February 1 of each year. However, the notification requirement will still apply to new hires, and the current Act’s document retention requirements remain in place.
The amendment also significantly increases the penalties for wage violations. Below are some of the proposed changes:
Higher monetary fines: Employers that fail to provide wage notices to new employees face fines of $50 per work day (increased from $50 per work week), up to a maximum of $5,000. Employers that fail to provide pay-rate earning statements with each wage payment face penalties of $250 per work day (increased from $100 per work week), up to a maximum of $5,000.
Stiffer penalties for repeat offenders: The maximum penalty for employers with a previous wage violation within the past six-year period will increase to $20,000 (versus $10,000 under the current law).
Increased liability: The bill imposes successor liability on employers that share similar ownership, operations, customers, or employees with another entity that has committed a labor law violation. The bill also amends the New York Limited Liability Company Law to impose joint and several liability for wage violations on the ten members of a limited liability company with the largest percentage of ownership interest.
Violation notification: The amendment requires contractors or subcontractors to disclose wage violations to all employees.
The bill will take effect 60 days after Governor Cuomo’s expected signature. Please check back for updates on this legislation as well as other proposals impacting New York and New Jersey employers.
If you have questions about the Wage Theft Prevention Act or want to ensure that your business is in compliance, please contact me, Bob Marisco, or the Scarinci Hollenbeck Labor and Employment attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Amendments to NY Wage Theft Law Head to Governor’s Desk
Author: Robert A. Marsico
A bill that would amend New York’s Wage Theft Prevention Act (the “Act”) awaits Gov. Andrew Cuomo’s signature. The changes offer both good news and bad news for New York employers.
Originally enacted into law in 2011, the Act aims to protect low-wage workers from unscrupulous employers who may attempt to pilfer their pay by mandating the provision of certain wage-related information to employees, including the employee’s rate of pay, how the employee’s pay is calculated, and the employee’s regular pay day. However, critics maintain that it overly burdens upstanding New York businesses.
Under the proposed amendment passed by both houses of the New York State Legislature in June, employers will no longer be required to give written notice of wage rates to all employees by February 1 of each year. However, the notification requirement will still apply to new hires, and the current Act’s document retention requirements remain in place.
The amendment also significantly increases the penalties for wage violations. Below are some of the proposed changes:
Higher monetary fines: Employers that fail to provide wage notices to new employees face fines of $50 per work day (increased from $50 per work week), up to a maximum of $5,000. Employers that fail to provide pay-rate earning statements with each wage payment face penalties of $250 per work day (increased from $100 per work week), up to a maximum of $5,000.
Stiffer penalties for repeat offenders: The maximum penalty for employers with a previous wage violation within the past six-year period will increase to $20,000 (versus $10,000 under the current law).
Increased liability: The bill imposes successor liability on employers that share similar ownership, operations, customers, or employees with another entity that has committed a labor law violation. The bill also amends the New York Limited Liability Company Law to impose joint and several liability for wage violations on the ten members of a limited liability company with the largest percentage of ownership interest.
Violation notification: The amendment requires contractors or subcontractors to disclose wage violations to all employees.
The bill will take effect 60 days after Governor Cuomo’s expected signature. Please check back for updates on this legislation as well as other proposals impacting New York and New Jersey employers.
If you have questions about the Wage Theft Prevention Act or want to ensure that your business is in compliance, please contact me, Bob Marisco, or the Scarinci Hollenbeck Labor and Employment attorney with whom you work.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
