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New York's Wage Theft Prevention Act: What Employers Need to Know

New York business owners who have employees need to know about the Wage Theft Prevention Act and how to maintain compliance because noncompliance can result in penalties against the company. To learn more about New York’s Wage Theft Prevention Act and its applicability for your business, consider contacting an experienced labor and employment lawyer with Schwab & Gasparini. Call the Syracuse office at (315) 422-1333, the Albany office at (518) 591-4664, or the White Plains and Hudson Valley office at (914) 304-4353 to schedule a consultation.

What Is the Wage Theft Prevention Act?

According to the New York State Department of Labor (DOL), the Wage Theft Prevention Act (WTPA) of 2011 was enacted to ensure that employees receive accurate and timely payment for their work. The Act combats wage theft and promotes fair labor practices by requiring employers to provide clear and comprehensive wage-related information to their employees. The Act mandates specific requirements for wage notices, pay stubs, and record-keeping, thereby enhancing a company’s transparency and accountability in its employer-employee relationships.

What Are the Requirements for Wage Notice in New York?

Upon hiring new employees, New York employers must provide the employees with a written notice that includes not only the employee’s wage rate but also the following:

• The employee’s overtime rate of pay, if applicable
• Whether the employee receives hourly, daily, weekly, per shift, or commission-based pay
• The employee’s regular payday
• The employer’s legal or DBA name, address, and phone number
• Allowances claimed as part of the wage

Employers must provide these written notices in English and in the employee’s native language if it is not English, as long as the DOL offers a translation in that language. After the employee signs and dates the notice, the employer must provide a copy to the employee. Employers also must retain the employee’s signed acknowledgment for six years.

Pay Stub Requirements for New York Employers

Employers in New York must provide their employees with pay stubs each pay period, and these statements must detail the employee’s earnings and deductions. The pay stub must include the dates of work covered by the payment, the rate of pay, and the number of hours worked. Other required details include tax and insurance deductions. Providing accurate pay stubs helps to ensure transparency and allows employees to verify that they are correctly compensated for their work.

How Employers Can Stay Compliant With the WTPA

Employers can ensure compliance with the Wage Theft Prevention Act by providing accurate and detailed wage notices to their employees. According to the Nassau County Bar Association, employers must provide the wage notices to employees upon hiring and again by February 1 of each subsequent year of continued employment. The Act also requires employers to give notice at least one week prior to implementation of any changes to the previously provided information. These notices must be in writing and include all the required information mentioned above.

To further ensure compliance with the WTPA, businesses should conduct regular audits of their payroll practices and implement a system for tracking and maintaining up-to-date records of wage notices, pay stubs, and employee acknowledgments. The New York DOL provides standardized templates to facilitate the inclusion of all required information on wage notices and pay stubs. Employers may also want to conduct regular training sessions for HR personnel and managers on wage and hour laws and stay informed about future changes in legislation so they can adapt their practices as necessary.

Penalties for Non-Compliance

A company’s non-compliance with the Wage Theft Prevention Act can result in significant penalties. The penalties can include up to 100 percent of unpaid wages in liquidated damages payable to the affected employees. An employer may also be penalized through fines of $1,000, $2,000, and $3,000, depending on whether this is the first, second, or third violation for something other than wages or benefits. Failure to act within a limited amount of time after the Labor Commission has issued an Order to Comply can cost an employer further penalties of up to $10,000 and even 15 percent in additional damages for a failure to pay within 90 days after the final Order to Comply. 

Employers may also face civil lawsuits and increased scrutiny from labor authorities, which can damage their reputation and financial standing. Even the smaller fines for failure to give notice or statements to employees, which are assessed in amounts per day per employee up to $5,000 per employee, can add up quickly if multiple violations occur. 

WTPA Resources for New York Employers

Employers can access various resources to help them comply with the Wage Theft Prevention Act, including guidelines, templates, and general information from the DOL. Hiring experienced HR and accounting professionals can help the employer take proactive steps to ensure compliance with labor and wage laws. Additionally, a skilled attorney from Schwab & Gasparini may be able to provide valuable insights and assistance in navigating some of the more complex aspects of remaining compliant with the law. 

Can a New York Employer Reduce an Employee’s Rate of Pay Without Notice?

Employers in New York must provide notice within seven days for any change that is not included on the pay stub for the next pay period. Notice is not generally required when there is an increase in the pay rate and that new rate will appear on the next pay stub. However, the employer must communicate any reduction in the employee’s rate of pay to the employee in writing before the change takes effect.

Employers must then update the wage notice to reflect the new rate of pay and any other changes. They must also obtain a new signed acknowledgment from the employee to ensure the company’s compliance with the Wage Theft Prevention Act.

Contact a New York Labor Law Attorney Today To Learn More About the Wage Theft Prevention Act 

Complying with the requirements of the Wage Theft Prevention Act is crucial for employers in New York. By seeking to gain a better understanding of the Act, employers can ensure fair treatment of their employees and avoid wage disputes and costly penalties for non-compliance. Employers who stay informed about wage laws, maintain accurate records, and provide clear communication to their employees are better able to comply with the law and foster a transparent and fair workplace. To learn more about your rights and obligations under New York’s Wage Theft Prevention Act, consider contacting an experienced labor law attorney with Schwab & Gasparini. Call today to schedule a consultation in the Syracuse office (315) 422-1333, the Albany office (518) 591-4664, or the White Plains and Hudson Valley office (914) 304-4353.

Tue Dec 17 2024, 12:00am