Articles Discussing New York Wage & Hour Laws.

Executive Summary: On December 29, 2014, Governor Andrew Cuomo signed a bill into law that amends the New York Wage Theft Prevention Act (the “Act”). While the amendments relieve New York employers from some administrative burdens, that is where the good news ends for employers.

New York State Governor Andrew Cuomo signed into law legislation to repeal the notice provision of the Wage Theft Prevention Act of 2010. Effective January 2, 2015, the law (Chapter 537) removes the notice requirement that, under the previous act, required employers annually to provide employees with a written notice regarding wage information.

After a delay of nearly six months, on December 29, 2014, New York Governor Andrew Cuomo signed into a law a bill (A 8106-C, S5885-B) that amends the state’s Labor Law, including the Wage Theft Prevention Act (the WTPA), and the law’s application to limited liability companies, contractors and successor employers. The key provisions of the amendments, which become effective on February 27, 2015, (i) eliminate the burdensome annual wage notice requirement; (ii) significantly increase penalties for non-compliance with the WTPA; (iii) expand contractor accountability, successor liability and personal liability for violations; and (iv) create a Wage Theft Prevention Enforcement Account.

Effective December 31, 2014, the New York State minimum wage increases to $8.75 per hour (from $8.00 per hour).

This is a reminder that, effective December 31, 2013, the minimum wage in New York will increase to $8.00 per hour. On December 31, 2014, it will increase to $8.75 per hour; on December 31, 2015, it will increase to $9.00 per hour, or the federal rate if greater than the state rate.

New York’s minimum wage will increase from $7.25 per hour to $8.00 per hour on December 31, 2013. Additional increases will occur annually after that — to $8.75 on December 31, 2014, and $9.00 on December 31, 2015.

The New York Department of Labor (NYDOL) issued final regulations, effective October 9, 2013, which explain how and when employers may make deductions for wage overpayments due to mathematical or clerical errors and for repayments of salary or wage advances.1 The final regulations include minor changes from the proposed regulations Littler previously discussed in detail.2 Below, we summarize the key provisions of the final regulations.

On June 26, 2013, the New York Court of Appeals issued a decision concerning who may lawfully participate in a restaurant tip-sharing system. The state’s highest court stated that for employees to receive tips from a tip-sharing arrangement, they must perform, or assist in performing, personal service to patrons as a regular part of their duties. Employees with limited supervisory authority are still eligible to receive tips if they regularly provide service to patrons, but become ineligible once their supervisory duties rise to the level of “meaningful authority.” The court also determined that an employer may exclude eligible employees from the tip-sharing arrangement, although the discretion to do so is not unlimited.1

Last year, Governor Cuomo signed into law new legislation, effective November 2012, which amended New York Labor Law section 193 to permit employers to make deductions for wage overpayments due to mathematical or clerical errors and for repayments of salary or wage advances.1 However, under the new law, such deductions can be made only as provided in regulations that have yet to be promulgated by the New York Department of Labor (NYDOL). The lack of regulations has stifled employers’ ability to take advantage of the new law.

The New York State Department of Labor (NYSDOL) has issued proposed regulations to guide compliance with a recent state statute expanding the scope of permissible wage deductions in New York as of November 6, 2012. The public is invited to comment on the proposed regulations until July 6, 2013. Along with the statutory amendments, the regulations, if adopted in their current form, would allow for greater flexibility with respect to permissible deductions.

After significant lobbying and legislative haggling, Governor Andrew Cuomo on March 29, 2013, signed legislation that increases the New York State minimum wage rate starting December 31, 2013. This is New York’s first minimum wage increase since July 24, 2009, when it was increased to match to federal minimum wage of $7.25 an hour.

The Wage Theft Prevention Act (“WTPA”), passed in 2011, requires employers to provide employees with an annual notice regarding their compensation and other terms of employment. The notice must be provided to all employees between January 1 and February 1 of each year, regardless if they previously received a notice. Earlier this year, the New York State Senate approved the repeal of the annual WTPA notification requirement, but the bill was not adopted by the Assembly. So for now, the annual notice requirement remains.

Governor Cuomo signed into law amendments to Article 193 of the New York Wage Deduction Law which will permit employers to take additional lawful deductions from employees’ paychecks. The law will take effect on November 8, 2012.

Expanding the scope of permissible deductions from wages under New York law, Governor Mario Cuomo, on September 7, 2012, has signed legislation amending New York Labor Law §193. This change was in reaction to a strict position taken by the New York State Department of Labor in recent years severely limiting the types of permissible deductions — essentially prohibiting any deductions not specifically set forth in pre-amendment Section 193. The amendment goes into effect on November 6, 2012, 60 days after it becomes law, and, unless extended, will expire and be deemed repealed three years after the effective date.

The New York State Senate and Assembly recently passed a bill amending New York Labor Law section 193 to expand an employer’s ability to make deductions from employee wages. The bill is currently awaiting delivery from the New York State Assembly to the governor’s office for his approval. The governor’s approval is virtually certain as his office previously submitted a memorandum supporting the amendment.