NY - Wage Theft Prevention Act (WTPA) Notice of Rates of Pay and Regular Payday

Effective April 9, 2011 Section 195.1 of the Labor Law, requires all New York employers, other than governmental agencies, to give employees at the time of hire (before work is performed) and on or before February 1st of each year, notice of  the following:

 

  1. the employee’s rate or rates of pay
  2. the overtime rate of pay, if the employee is subject to overtime regulations
  3. the basis of wage payment (per hour, per shift, per week, piece rate, commission, etc.)
  4. any allowances the employer intends to claim as part of the minimum wage including tip, meal, and lodging allowances
  5. the regular pay day
  6. the employer’s name and any names under which the employer does business (DBA)
  7. the physical address of the employer’s main office or principal place of business and, if different, the employer’s mailing address
  8. the employer’s telephone number

Please read the LS-52 Guidelines for Written Notice of Rates of Pay and Regular Payday for more information relating to the changes in existing law under the Wage Theft Prevention Act (WTPA).  

In addition, employers must obtain signed and dated written acknowledgements of such notices from each employee. As with the notice, acknowledgements must be in English and in the language identified by each employee as his or her primary language. These notice requirements apply to all employees, including executives. The act directs the commissioner to provide templates to assist employers in complying with the new notice requirements.  Templates are available on the Department’s web site at www.labor.ny.gov.   Each employee who does not receive an appropriate new-hire or annual notice may recover $50 for each workweek that he or she did not receive such notice, up to $2,500, together with attorneys’ fees. If the commissioner brings an action on behalf of an employee who has not received such notice, she may also assess a $50 penalty per workweek that the employee did not receive the requisite notice, with no cap on total liability. An employer that does not provide appropriate new-hire or annual notice may avoid liability if it can establish that it either made complete and timely payment of all wages due to the employee(s) at issue or reasonably believed in good faith that it was not required to provide the employee(s) at issue with new hire and/or annual notices.

 

Notice of Changes in Wage and Hour Information

Employers must also now provide written notification to their employees of any changes to the information that is contained in their new-hire or annual notices at least seven calendar days before the changes become effective. This notice need not be provided to employees if all such changes are reflected on the employee’s regular pay stub (see next section).

Additional Information on Pay Stubs: The act requires that employers provide their employees with the following information each payday:

  • The dates of work covered by the payment of wages.
  • Employee’s name
  • Employer’s name, address and phone number.
  • The pay rate(s) and basis of pay (e.g., hourly, salary, commission, etc.).
  • Gross wages, Deductions, Allowances, if any, claimed as part of the minimum wage & Net wages.

For non-exempt employees, their regular hourly and overtime rates of pay, and the number of regular and overtime hours worked.

For piece-rate workers, the applicable piece rate(s) of pay and the number of pieces completed at each piece rate.

Employers must also provide any employee with a written explanation of how his or her wages were computed upon request. Employers must maintain all of this information for each of their employees along with their signed notice acknowledgement forms for six years.

If an employer does not provide its employees with this information each payday, each of its employees may recover $100 for each workweek that he or she did not receive such information, up to $2,500, together with attorneys’ fees. If the commissioner brings an action on behalf of an employee who has not received such wage information, she may also assess a $100 penalty for each workweek that the employee did not receive the requisite information, with no cap on total liability. An employer that fails to provide the required information with each payment of wages may nevertheless avoid liability if it can establish that it either made complete and timely payment of all wages due to the employee(s) at issue or reasonably believed in good faith that it was not required to provide the employee(s) at issue with wage statements.

 

Increased Liability for Wage and Hour Violations and Retaliation

The act also increases the potential liquidated damages available if an employee is not paid in accordance with the New York law from 25 percent to 100 percent of the unpaid wages. Since the commissioner already has the authority to assess a civil penalty of up to 200 percent of the unpaid wages and interest, an employer’s total liability for a wage violation could ultimately be many times greater than the actual amount of unpaid wages. The act also requires employers who violate New York wage payment and minimum wage provisions to post a notice summarizing the violations in an area visible to employees. And if the commissioner determines that an employer’s violation was willful, the commissioner may order that the notice be posted in an area visible to the general public for up to 90 days.

Finally, the act increases the penalties for retaliating against employees who reasonably and in good faith engage in protected conduct under New York wage and hour law (e.g., complain about wage and hour violations to his or her employer, the commissioner, the attorney general, or anyone else or provide information to the commissioner or attorney general). In such instances, the commissioner may assess a $10,000 civil penalty against the employer. The employee at issue may also recover liquidated damages of up to $10,000, lost compensation, and reinstatement. Alternatively, the employee may recover front pay in lieu of reinstatement and lost compensation.

 

Bottom Line for Employers

Along with this specific requirement to track new hires, there were also several new provisions and changes that increase penalties associated with violations with the State of NY.  It is important that every business, and NY employers especially, carefully review their current pay, hiring, firing, and recordkeeping practices to ensure they are compliant with the number of new burdensome notice and recordkeeping obligations present under The Wage Theft Prevention Act.

 

Please use this link for more information, as well as for downloads of the actual forms you must use:
http://www.labor.ny.gov/workerprotection/laborstandards/workprot/lshmpg.shtm

Have more questions? Submit a request

2 Comments

  • 0
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    Jonathan

    More and more states are moving in the direction of increasing record-keeping, hr-related, and time and labor management requirements for businesses of all sizes.  Please let us know if you would like to find additional ways to keep your business in compliance.

    BeyondPay now offers Time & Labor Management solutions, to automate your time tracking and collection process.  This seamlessly integrates with our payroll services--100% web-based.

    We can also put you in touch with Labor Law Attorneys and other HR options to help you understand the many laws, keep you in compliance, and help deal with issues when they arise. 

  • 0
    Avatar
    Jonathan

     

    NYS Department of Labor Notice of Pay Rate and Payday for all Employees as part of the Wage Theft Prevention Act

    As you know, NYS Labor laws state that employers must provide all new employees with a written notice of their regular and overtime wage rates, as well as their regular payday.

    This law now also requires employers to give a written notice to ALL employees by February 1st of each year. 

    This notice must include:

    Rate(s) of pay including Overtime rate(s),
    How the employee is paid (ex: hourly, by shift / day / week, commissions, etc.),
    Regular payday,
    Official name and DBA name of the employer,
    Address and phone number of employer’s main office,
    Any allowances taken as part of the minimum wage (ex: meals, tip credit, etc.).
    These notices must appear in both English and the employee’s primary language (if the Department of Labor offers a translation). The Department of Labor has forms available in

    Chinese, Haitian Creole, Korean, Polish, Russian and Spanish.

    For copies of these forms visit: http://www.labor.ny.gov/formsdocs/wp/ellsformsandpublications.shtm (http://www.labor.ny.gov/formsdocs/wp/ellsformsandpublications.shtm)

    Employers must have each employee sign and date the completed forms, and must provide a copy to each employee.

     Employers that do not give this notice to all employees by February 1st will be subject to damages and penalties.

    If you have any questions or concerns about this or any other matter, please do not hesitate to contact us.  Otherwise, for more information on the Wage Theft Prevention Act, please visit:

    http://www.labor.ny.gov/workerprotection/laborstandards/workprot/lshmpg.shtm (http://www.labor.ny.gov/workerprotection/laborstandards/workprot/lshmpg.shtm)

    Thank you for your continued support and business.

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