New York: Court Decision Results in New Challenges with the Frequency of Pay Law

APPLIES TO

All Employers with NY Employees

EFFECTIVE

September 10, 2019

QUESTIONS?

Contact HR On-Call

(888) 378-2456

In Vega v. CM & Associates Construction Management, LLC, the Appellate Division of the New York Supreme Court stated that employers may be liable to pay liquidated damages for wage claims surrounding a failure to pay manual workers timely.

In New York, employers must pay manual workers, defined as a “mechanic, workingman or laborer” but interpreted to include individuals who spend 25% or more of their time engaged in physical labor, on no less than a weekly basis.  Employers who failed to meet this frequency requirement because they paid manual workers on a bi-weekly or later basis were previously subject to only civil penalties, per uniform court precedent.

However, recent federal and state courts handling private lawsuits seeking liquidated damages, interest on late wages, and other fees disagreed on whether or not the weekly frequency of pay requirement allows a private right of action.  In Vega, a panel of judges unanimously agreed that New York’s Frequency of Pay law does provide a private right of action, and that claimants may seek liquidated damages where employees are paid in full but not timely.

Action Items

  1. Review pay frequency practices for compliance with state regulations.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *