All NY employers should be aware that the Wage Theft Prevention Act, that was signed into law on 12/13/10, is going into effect on 4/12/11. Please take a few moments to read the details below and make sure you are in compliance. The fees are pretty steep. This information comes to us from Ace Payroll Services. Thank you Alan and staff.
The main provisions of the act that employers must adhere to are as follows:
Notice Requirement – Upon hire of a new employee and by February 1 of each subsequent year for all employees, the employer is required to provide the employee in writing their rate of pay and how it is paid (hourly, weekly, commission, etc.); allowances claimed against minimum wage (e.g., tip, meal or lodging credits); the employer’s regular pay day, the employer’s name and any “doing business as” names; the address of the employer’s main office or principal place of business and mailing address if different; the employer’s telephone number, plus any other information the Commissioner of Labor deems “material and necessary”. Employers are also required to notify employees of changes to the information seven days in advance, unless the employer reflects the changes in the information to be required with every wage payment. This information must be signed and acknowledged by the employee each time it is received. It must be provided in English and, if the employee’s primary language is not English, in the employee’s primary language. The Labor Commissioner has been directed to prepare templates in English and languages they deem necessary.
Wage Statements – In addition to the above, employers must provide with every wage payment dates of work covered; employer’s address and telephone number; the rate of pay and the manner in which it is paid (hourly, salary, commission, etc.); gross wages, net wages; deductions; allowances against minimum wage; and for non-exempt employees, the regular rate of pay, overtime rate of pay and the number of regular and overtime hours worked. These records must be maintained for six years.
Penalties For Non-Compliance – Failure to provide the notice within ten business days of an employee’s hire date subjects the employer to a penalty of $50 per work week to a maximum of $2500 plus costs and attorney fees. Failure to provide employees with the wage information in each payroll statement subjects the employer to a penalty of $100 per work week to a maximum of $2500 plus costs and attorney fees.
Increased Penalties for Wage Violations – The act increases from 25 percent of unpaid wages to 100 percent of unpaid wages, the amount of liquidated damages the Commissioner of Labor may seek.
Anti-Retaliation Provision – The act stiffens penalties against employers for retaliation against employees who make complaints regarding conduct the employee believes in a violation of the wage payment laws. In addition to reinstatement and back pay, retaliation victims can also collect liquidated damages up to $10,000. In addition, the employer is required to post notice in the work place, in a visible area, of the violation.
