New York Compensation Administration laws & HR compliance analysis

New York Compensation Administration: What you need to know

The Wage Theft Prevention Act expands wage notice and recordkeeping requirements for employers, increases penalties for employers that fail to pay full wages due, and expands the state’s enforcement powers. Under the Act, employees must be notified in writing at the time of hiring of their rate of pay and the established payday; whether pay is by the hour, shift, day, piece, salary, commission, or other basis; any allowances, such as tips, meals, or lodging, claimed as part of the minimum wage; and the employer’s address, phone number, and any “doing business as” names, among other information. The notice provided to nonexempt employees must also include their overtime rate. Employers must obtain signed, dated acknowledgments, provided in English and in the worker’s primary language, of receipt of the notices. Any changes to the terms must be conveyed to workers in writing at least 7 calendar days in advance or included on pay stubs. Employees must be notified in advance if paydays are changed. Employees must also be notified, in writing or by a posting in a public area, of the employer's policy on sick leave, vacation, personal leave, holidays, and hours.
The Act also increases civil penalties for violations of wage laws from 25 percent of wages due to 100 percent, for a total recovery of as much as double the unpaid wages. In addition, it allows employees to collect a civil penalty of $50 per week, up to a total of $2,500, from employers that fail to provide preemployment pay notices, and $100 per week, up to $2,500, from employers whose pay statements fail to include the required information. The Act further provides for recovery of legal fees and interest and permits the labor commissioner to ...

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