New York Wage Theft Prevention Act Now In Effect

The New York Wage Theft Prevention Act (WTPA), signed into law last December, became effective April 9. The new law imposes on New York employers a variety of more stringent pay notice requirements and increases penalties for violations of wage payment as well as notice and recordkeeping violations. All New York employers will need to ensure that their practices are in compliance.

Just over a week before the law's effective date, the New York Department of Labor (NY DOL) finally issued sample notices, guidelines, and a set of FAQs on the law's application. The NY DOL's Guidelines can be found on its website or you may visit here and here. Instructions have also been posted. There are templates for providing notice to new hires and employees. And the NY DOL has provided a set of FAQS.

Here is a prioritized list of actions. Some should be taken now; others can be addressed in due course.

1. Confirm That All Necessary Information Is Being Distributed With Each Paycheck

   Most employers utilize a payroll services company to process their employees' paychecks. These companies, such as Paychex and ADP, will almost certainly have been preparing for the effective date of the WTPA and will know what is required. It would nevertheless be prudent to confirm with your vendor that the information on paycheck stubs that will be distributed in the first pay period after April 9 will include:

   applicable dates covered; the employers' main address and telephone number; employee's pay rate; the basis for the pay rate (whether paid by the hour, shift, day, week, salary, piece, commission); any allowances claimed as part of the minimum wage (tips, meal allowances); amount of gross wages; any wage deductions; net wages paid; and for non-exempt employees, the regular and overtime pay rates and the number of regular and overtime hours worked. For employers who handle their own payrolls, this is definitely a top priority because pay stubs are delivered regularly and may be the first occasion when compliance with WTPA could be tested.

2. Review Procedures And Forms Used To Notify New Hires

   The requirement to give a notice to new hires containing information about their wages is not new; it has been required since 2009 under the provisions of New York Labor Law (NYLL). But the WTPA adds a requirement to give existing employees similar notices on an annual basis, although that does not go into effect until 2012.

   WTPA adds significantly to the requirements, and the following issues should be considered and addressed:

   Information To Be Conveyed

   Under the WTPA, notices must include the following information:

   the new hire's regular rate of pay, regular payday, and overtime rate of pay (if eligible for overtime); the basis of the wage payment (e.g., whether the employee will be paid by the hour, shift, day, week, salary, piece, or commission, or on some other basis); whether the employer will be claiming some type of allowance, such as for tips or a meal allowance, as part of the minimum wage; the employer's main address and phone number; and additional information about the employer, including any d/b/a names. Separate Notice

   Until the most recent pronouncements by NY DOL, it had not been clear whether an employer could comply...