New Year, New Protections For Prospective Employees In New York

As one year ends, another begins. And as New York employers turn the page on another busy year in labor and employment legislation, they should be mindful of several new laws set to become effective in 2020. The new laws will require additional compliance efforts, making the end of the year a good time for a thorough review of payroll and hiring practices.

Minimum Wage Increase(s)

New York employers should be prepared for impending increases to the minimum wage set to become effective on December 31, 2019. The increases vary depending upon an employer's size and location. For example, beginning on December 31, 2019, all New York City employers, regardless of size, will be required to pay all employees at least $15.00 per hour, a $1.50 increase from the City's 2019 minimum wage. Employers in Long Island and Westchester County will see the minimum wage increase from $12.00 per hour to $13.00 per hour. The minimum wage for the remainder of New York State will increase from $11.10 to $11.80 per hour.

With the coming changes, employers should continue to be mindful of New York's Wage Theft Prevention Act (WTPA). The WTPA provides that New York employers must provide a "Notice of Pay" form, more commonly referred to as "wage notices," to all employees at the time of hire and upon a change in their rate of pay. The New York Department of Labor has made sample forms available on its website and has opined that certain employers need not provide updated wage notices so long as the updated wage is reflected in the employee's next pay stub. Employers in the hospitality industry, however, must provide updated wage notices. If required, the employer must provide the updated wage notices by December 24, 2019.

Existing New York law provides a private cause of action for affected employees, and entitles a successful employee to recover his or her attorneys' fees. Under the law, New York employers who fail to provide initial or updated wage notices to employees are liable for $50 per day for a violation, up to a maximum of $5,000 per employee. Thus, a seemingly insignificant oversight could cost employers tens of thousands of dollars if the same mistake is made as to multiple employees.

In order to avoid potential liability, employers should perform internal audits to ensure that wage notices have previously been provided to all current employees, while those employers which outsource their human resources or payroll processes should determine whether the...