January 25, 2013
New York Wage Theft Prevention Act
We would like to remind employers of their obligation to inform allNew York employees – including exempt employees – in writing, of certain terms of employment, concentrating largely on employee compensation. This written notification must be provided to all employees between January 1 and February 1 of each year, regardless of whether they had previously received a notice. We have previously advised you regarding the effects of the Wage Theft Prevention Act (the “WTPA”). See our Alerts December 16, 2010 and March 24, 2011.
The notice must include:
- the rate(s) of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece commission, or other;
- allowances, if any, claimed as part of the minimum wage;
- the designated pay day;
- the name of the employer;
- any “doing business as” names used by the employer;
- the physical address and mailing address (if different) of the employer; and
- the telephone number of the employer.
Prior to making any changes to the aforementioned information, an employer is required to provide seven (7) days’ notice unless such information is set forth in the wage statement accompanying the payment of wages. Furthermore, an employer must notify an employee in writing before it reduces an employee’s wage rate.
Template notices are available on the New York State Department of Labor (“NYDOL”) website at: http://www.labor.ny.gov/formsdocs/wp/ellsformsandpublications.shtm. The notice must be provided in both English and in the employee’s primary language (if the NYDOL offers a template in that language).
Significance for Employers
Employers must provide notices to all employees between January 1, 2013 and February 1, 2013. Failure to provide proper notice subjects employers to damages of up to $50 per week, per employee (up to $2,500 per employee in civil lawsuits).
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If you have any questions regarding the Wage Theft Prevention Act, please do not hesitate to contact us.