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Originally enacted into law in 2011, the Act aims to protect low-wage workers from unscrupulous employers who may attempt to pilfer their pay by mandating the provision of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.
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
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!
