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Originally enacted into law in 2011, the Act aims to protect low-wage workers from unscrupulous employers who may attempt to pilfer their pay by mandating the provision of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.
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
