Possible Amendments to the New York Labor Law

An Act sitting in the New York State Senate may bring important changes to the New York Labor Law. If Governor Cuomo signs the Act then employers will no longer be required to provide annual wage notices. Instead employers will only have to provide an employee with a wage notice upon hire. If an employer does not provide an employee with a wage notice after 10 business days of the employee’s first day of work, then a penalty of up to $5,000 will be imposed. Further, the penalty to employers who fail to provide accurate wage statements will also increase to $5,000. One distinction from the previous provision of the law is that these new penalties will now accrue on a daily basis instead of on a weekly basis perhaps to encourage employers to provide wage notices and accurate wage statements in a timely manner.

 

The proposed Act will create clearer guidelines with regards to successor liability. In particular, an employer similar in operation and ownership to a prior employer will be deemed the same employer if employees of subsequent employer are engaged in substantially the same work, in the same working conditions, and under the same supervisors. In addition, if the subsequent employer has substantially the same production process, produces the same products, or has the same body of customers then it will also be considered the same employer.

 

The Act will create accountability for contractors and sub-contractors. Contractors and sub-contractors who fail to pay their employees will be obligated to notify their employees of the nature of their violations. The notifications will have to be made via paycheck attachment to all employees throughout all worksites. With regards to limited liability companies (“LLC”), the Act will impose liability to the 10 members who hold the largest percentage ownership of a LLC. These members will be held personally accountable for unpaid wages or salaries owed to employees.

 

Another significant modification of the NYLL will inflict a higher penalty to employers who retaliate against employees. If after investigation, an employer is found to have violated the retaliation clause of the NYLL they could face a penalty of up to $10,000. But if the same employer is found to have violated the NYLL within the past 6 years, then the penalty will double to $20,000 for second time violators.

 

Fitapelli & Schaffer, LLP believes that the Act is a stride forward for employee rights under the NYLL. The increase in damages and penalties will help to deter employers from retaliating against employees and encourage them to provide accurate wage notices. If you have any questions about your right under the NYLL, please give us a call at (212) 300-0375 or visit our website at fslawfirm.com.