December 8, 2011
A few months ago we reported the passage of the New York Wage Theft Prevention Act. This new law requires employers to provide written notice to employees of their rate of pay, calculation of hours, allowances, and other wage and benefit information – not only when they are hired, but also on or before February 1st of each calendar year, which means that you will need to provide your employees with all of the required information this month.
The Department of Labor has published a set of including all of the required information – to see them click here.
Be advised that the new requirements do have some bite – under Section 198.1 of the Labor Law, if an employee is not provided with the required notice within 10 business days of his or her first day of employment, they are entitled to statutory damages of fifty dollars for each week of employment the their employer has failed to provide them with the required notice, up to a maximum of $2,500, and reasonable attorneys fees. The Department of Labor may bring actions on behalf of employees as well, so depending on the number of employees you have, this is an area that could result in significant exposure in event of an audit.
In addition to the employee notice requirements, Section 195.4 of the Labor Law now requires employers to maintain payroll records for six years, doubling the previous requirement of three years, and also, requires more complete payroll records than were previously required. Be advised that liquidated damages for underpayment of wages, which used to be 25%, are now 100% under the Act. (see Section 198 of the Labor Law) This significant increase in the statutory liquidated damages available to plaintiffs is likely to result in an upsurge in litigation.
GETTING FOUND OUT – As some of you may unfortunately already be aware, the Department of Labor engages in regular audits. Due to the abundance of regulators and litigious former employees, it is imperative that your Practice implement these new requirements before it is too late. In light of additional penalties for noncompliance we recommend that you prioritize updating your payroll compliance policies and protocols to conform to all of the new requirements included in the Wage Theft Prevention Act.
Have an employee/employment related questions, or looking for assistance with policies and procedures? Contact Anish Mashettiwar, Esq. (amashettiwar@kirschenbaumesq.com, 516 747 6700 x. 308) or Jennifer to discuss.
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