New York's "Wage Theft Prevention Act" Imposes Sweeping Changes on State Labor Law

Among other things, the Act requires employers to comply with more stringent notice and recordkeeping requirements. All New York employers (except governmental agencies, which are not subject to the requirements of the applicable Labor Law provisions) will have to modify their recordkeeping and notice practices to comply with the Act. Moreover, both civil and criminal penalties have been significantly increased across an array of Labor Law provisions, not limited to notice and recordkeeping issues. Thus, the amendments may require attention in additional areas as well.

Under the current Labor Law (based on a prior amendment in 2009), employers have to give new employees certain information regarding their wages in writing when they are hired. The Act amends Labor Law Section 195 by requiring employers to (1) include additional information in a written notice and (2) provide employees written notice of this information both at the time the employee is hired and annually on or before February 1 of each year.

Prior to the effective date of the Act, employers have been statutorily required to include (in notices to new hires) the employees' regular and overtime rate of pay and regular pay day.  In addition, the New York State Department had issued guidelines requiring that employers include the basis for the exemption from overtime payment for all employees deemed exempt from overtime requirements.  Beginning April 9, 2011, the Act will more....