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NEW - NYS WAGE THEFT PREVENTION ACT
Changes in the Labor Law – Introducing the Wage Theft Prevention Act (WTPA)
New Law Increases Burdens and Risks
For New York State Employers
The recently enacted New York State Wage Theft Prevention Act (the "Act") imposes burdensome new notice and recordkeeping requirements on all New York State employers. The Act also increases penalties for violations of the New York State Labor Law (the "Labor Law") and related retaliation claims. The Act is effective beginning April 9, 2011.
Summary of New Law | FAQs | Download Applicable Forms
Summary
 Key Provisions of the Act
 Employers must provide a written notice to each employee upon hire and annually thereafter. The notice must include information on the employee's rate of pay, among other items listed in the Act (the "Mandatory Notice").
Employers must obtain a signed and dated written acknowledgement of receipt of the Mandatory Notice from each employee, and save the records for at least six years.
Employers must provide each employee with detailed wage payment information in a written statement each pay period (the "Wage Statement"), and save the records for at least six years.
Employers who do not provide the Mandatory Notices or Wage Statements to employees may be subject to civil or administrative action, and damages of $50 per week per employee who is not provided the Mandatory Notice and $100 per week per employee who is not provided the required Wage Statement, subject to certain statutory maximums.
The Act increases the amount of liquidated damages an employer can be subject to for violations of the wage and hour laws from 25% of the unpaid wage amount to 100% of the unpaid wage amount. The Act also increases other civil and criminal penalties to which an employer may be subject.
Action Required By Employers
Review payroll practices and use the Notices below to ensure all information required to be furnished on new hire and annual Mandatory Notices is included;
Ensure that all hours worked by each employee, including times of arrival and departure, are tracked and recorded;
Ensure Wage Statements are furnished with each pay period and contain all required information;
Put policies in place to ensure that all pay-change information is communicated in writing to employees at least seven days before the new pay practices are implemented or is reflected in Wage Statements;
Given that the protections of the Act will likely be used by employees and their counsel to continue to challenge employer determinations that an individual is either an employee exempt from the overtime rules or an independent contractor, take this opportunity to audit your workforce and payroll practices for potential "misclassification" issues;
Given that the protections of the Act will likely be used by employees and their counsel to continue to challenge employer determinations that an individual is either an employee exempt from the overtime rules or an independent contractor, take this opportunity to audit your workforce and payroll practices for potential "misclassification" issues;
Coordinate with outside payroll providers and internal payroll personnel to make sure records containing all required information are maintained for at least six years; and
Train supervisors and human resources personnel in the new requirements and their responsibilities under the Act.
Notice and Acknowledgment of Pay Rate and Payday Requirement
Effective April 9, 2011, there is an updated new hire form called the "Notice and Acknowledgment of Pay Rate and Payday" form. Section 195.1 of the Labor Law, now requires all employers, other than governmental agencies, to give employees at the time of hire (before work is performed) and on or before February 1st of each year, notice of the following:
the employee's rate or rates of pay
the overtime rate of pay, if the employee is subject to overtime regulations
the basis of wage payment (per hour, per shift, per week, piece rate, commission, etc.)
any allowances the employer intends to claim as part of the minimum wage including tip, meal, and lodging allowances
the regular pay day
the employer's name and any names under which the employer does business (DBA)
the physical address of the employer's main office or principal place of business and, if different, the employer's mailing address
the employer's telephone number
Wage Statement Requirement
Each time wages are paid, employers are also obligated to provide certain financial data to each employee with every payment of wages, which includes the items below:
Name of employee
Name of employer
Address of employer
Telephone number of employer
Rate/rates of pay and basis thereof
Whether paid hourly, by shift, daily, weekly, salary, piece, commission or other
Dates of work covered by payment of wages
Deductions
Gross Wages
Allowances claimed as part of the minimum wage (meals, tips, etc.)
Net wages of employee
If the employee is not exempt from overtime, then include the regular hourly rate and overtime rate of pay, plus the number of regular hours worked and number of overtime hours worked
If the employee is paid a piece rate, then include the applicable piece rate/rates of pay and the number of pieces completed at each piece rate
Upon request from an employee, an explanation of how the wages were computed
Termination Letter Requirement
Within 5 working days of termination of employment, employers are required to notify the employee of the exact date of termination of employment and the exact date of cancellation of employee benefits.
All New York State employers should comply with the Act's requirements by April 9, 2011. It is important to acknowledge that the penalties for non compliance with any of these provisions are SEVERE.
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Download Applicable Forms
LS 52 -- Guidelines for Written Notice of Pay Rates and Regular Payday -- Guidelines for compliance for most New York State employers
English
LS 53 -- Instructions: Model Notices of Pay Rates and Pay Days under Section 195.1 -- Explanation of different pay notices to use for different types of employees
English
There are currently six (6) separate model notices for the "Notice and Acknowledgment of Pay Rate and Payday" form (LS-54 through LS-59).
LS 54 -- Pay Notice for Hourly Rate Employees -- Use This Pay Notice & Acknowledgement for HOURLY Employees
English | Español
LS 55 -- Pay Notice for Multiple Hourly Rates -- Use This Pay Notice & Acknowledgement for Employees with MULTIPLE HOURLY RATES
English | Español
LS 56 -- Pay Notice for Employees Paid a Weekly Rate or Salary for a Fixed Number of Hours (40 or fewer in a week) -- Use This Pay Notice & Acknowledgement for employees paid a weekly rate or a salary for a fixed number of hours (40 or fewer in a week).
English | Español
LS 57 -- Pay Notice for Employees Paid a Salary for Varying Hours, Day Rate, Piece Rate, Flat Rate or Other Non-Hourly Pay -- Use This Notice & Acknowledgement for Employees Paid Salary for Varying Hours, Day Rate, Piece Rate, Flat Rate or Other Non-Hourly Pay
English | Español
LS 58 -- Pay Notice for Prevailing Rate and Other Jobs -- Use This Notice & Acknowledgement for employees paid prevailing rates on public work jobs
English | Español
LS 59 -- Pay Notice for Exempt Employees -- Use This Notice & Acknowledgement for exempt employees.
English | Español
Chinese, Korean, Creole, Polish and Russian versions of these forms are available on the DOL website.
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