The New York State Wage Theft Prevention Act (WTPA), which went into effect
in 2011, required employers to give all employees written notice of the
employee's wage rate (hourly and overtime), exempt or non-exempt status,
and other information relating to their pay and the business they work
for, by February 1st of each year. The Notice had to be signed by both
employer and employee, and maintained by the employer.
As we previously reported...
The Legislature passed a bill several months ago repealing the Annual Notice
Provisions of the WTPA, but the bill was not presented to Governor Cuomo
until December 17, 2014. On December 29, 2014, Governor Cuomo signed the
bill which repeals this provision of the WTPA, one that was cumbersome
for both large and small employers, and was enforced by a daily fine,
per employee, for non-compliance.
The notice provisions remain in place for new hires, who must receive
notice within 10 days of hiring. Also, a new notice must be provided to
employees when there is a change in their rate of pay.
It is also important to note...
While the annual notice requirement is no longer in place, employers must
provide such notice to employees receiving the minimum wage in 2015 and
2016, because there is still a notification requirement each time there
is a rate change. Since the minimum wage increased to $8.75 on December
31, 2014 and is set to increase to $9.00 on December 31, 2015, a notice
must still be provided to minimum wage employees in 2015 and 2016.
The carrot for employers also comes with a stick; the penalty for non-compliance
with the remaining provisions of the law also has significantly increased:
- The penalty for non-compliance increases from $50 per week per employee
to $50 per day per employee.
- The maximum penalty that can be imposed and collected by the Department
of Labor has also increased, from $10,000 to $20,000.
- The new bill also imposes liability for unpaid wages on LLC members individually,
when appropriate notice is given, as well as for successor businesses.
Should you have any questions or concerns about these changes, please feel
free to contact Mr. Gefen at 516.437.4385.