New York: Legislative Updates
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Discussion
The New York State Legislature passed a number of bills which have already been signed or are likely to be signed by the Governor. Below is a summary of the most important developments.
Frequency of Pay Damages Limited for Manual Workers
Effective May 9, 2025, the New York Labor Law (NYLL) has been amended to limit damages in frequency-of-pay actions for manual workers. The amendment is a boost for employers who have been subject to class action litigation due to a state court decision in 2019. In Vega v. CM & Associates Construction Management, LLC, the New York State Appellate Division, First Department ruled that manual workers have a right of action if an employer pays them on a bi-weekly rather than weekly basis. In 2024, there was more confusion when the Second Department ruled in Grant v. Global Aircraft Dispatch Inc. that manual workers do not have a private right of action when they are paid all of their wages biweekly rather than weekly. The NYLL defines a manual worker as a mechanic, workingman, or laborer which has been interpreted by the New York State Department of Labor as an employee that spends more than 25% of their work engaged in physical labor.
New York’s Frequency of Payments Law requires payment of manual workers within seven days after the end of the week in which wages are earned. Rather than wait for the New York Court of Appeals to resolve the split between the state courts, the New York State Legislature moved to resolve the issue due to high cost to employers in litigation, where damages were calculated as liquidated damages equal to 50% of total wages. The amendment applies to both future and pending cases.
As part of the Fiscal Year 2026 budget, Part U of the Education, Labor and Family Assistance (ELFA) amends the NYLL in several respects. First, the scope of liquidated damages has been narrowed to not be applicable where the employer has paid an employee’s wages on a regular payday with no less frequency than semi-monthly. In such cases where the pay is semi-monthly, damages are limited to lost interest due on the delayed payment of wages for each day payment is late. Second, liquidated damages are only available for 100% of the total unpaid wages after May 9 and only if the employer has been subject to one or more previous findings and orders for violating NYLL. This is further limited by applying only in situations where there is no administrative or judicial review pending and the time for such proceedings has expired.
While employers may currently have relief for damages, this amendment does not resolve the question of whether employees have a private right to claims under the NYLL. New York employers with manual workers should continue to monitor the pending appeal before the New York Court of Appeals for updates.
Health Terminals Act
Effective January 1, 2026, Part T of the Education, Labor and Family Assistance (ELFA) makes several amendments to the Healthy Terminals Act (HTA). The HTA went into effect in 2021 and required airport employers to provide employees with better wages, benefits, and increased protections. This amendment expands the HTA’s coverage and increases wages and benefits. Below are the most significant changes.
Expanded Covered Workers
The definition of a covered worker now includes “any person employed to perform work at a covered airport location, provided at least half of the employee’s time during any workweek is performed at a covered airport location.” The definition removes the exclusions which prevented security, cleaning staff, mechanics, and other individuals from coverage. Now the only explicit exclusion is for individuals performing work under the executive, administrative, or professional exemption under the Fair Labor Standards Act.
Wages
The applicable standard rate is the wage and benefit rate determined by the General Services Administration under the McNamara-O’Hara Service Contract Act. However, the prevailing wage cannot be less than the minimum wage rate of the Port Authority of New York and New Jersey. For LaGuardia and JFK Airport workers, the Wage Determination #2015-4187 applies.
Supplemental Benefits and Vacation
Supplemental benefits and vacation also follow the Wage Determination #2015-4187. The health and welfare supplement is $5.36 per hour, capped at 40 hours per week. This means a maximum of $214.40 per week or $929.07 per month. A minimum of 12 paid holidays are also included (New Year’s Day, MLK Day, Washington’s Birthday, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day).
Paid vacation accrues at the following rate based on years of service. Length of service includes the whole span of continuous service with the present employer, wherever employed, and with predecessors in the performance of similar work at the same facility.
- 2 weeks after 1 year of service
- 3 weeks after 5 years of service
- 4 weeks after 10 years of service
Employers must update their vacation policies, wages, supplemental benefits, and holidays. Employers also need to reevaluate their workforce to determine who will now fall under the expanded covered worker definition.
Action Items
- Review pay frequency for manual workers with legal counsel.
- Revise payroll for minimum wage and supplemental benefits increase.
- Update leave and holiday policies.
- Review workforce to determined scope of covered airport workers.
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. © 2025 ManagEase