Proposed Amendment To New York’s Wage Theft Prevention Act A Mixed Blessing for Employer Community

Following several rounds of lobbying and legislative proposals, both houses of the New York State Legislature this week passed a bill repealing the annual wage notice requirement (requiring a written notice during the month of January regardless of the timing of pay increases or date of hire) codified in New York Labor Law § 195 by the 2011 Wage Theft Prevention Act. As part of the compromise leading to passage of the bill, penalties associated with violation of other provisions of the Labor Law were increased. The bill did not modify the other notice requirements set forth in the Act.

“Repeal of the annual notice if enacted into law is a win for employers,” observed Long Island based Jackson Lewis Shareholder Jeff Brecher. “However, given the potential increased penalties associated with the Act’s new hire notice and wage statement requirements, employers must take care to ensure that they not only issue these documents, but comply fully.”

As of this writing, the Governor’s office had not yet commented whether he will sign the proposal into law.