The New York Legislature recently passed an amendment to New York’s Wage Theft Prevention Act that eliminates the requirement that employers provide employees with an annual pay notice. The Rate of Pay forms no longer have to be distributed to non-exempt and exempt employees in January of each year.
However, employers must still provide the notices to all new employees. In addition, the new bill increases penalties for failing to provide the notices, among other enforcement changes. Governor Cuomo is expected to sign the bill, which will become law 60 days after it is signed. Here are a few additional provisions employers need to be aware of:
1. Failing to provide the new hire pay notice within ten business days of the new employee’s start date will cost $50.00 per work day, up to a maximum of $5,000 (previously $25.00 per workday, up to a maximum of $2000).
2. Failing to provide earning statements that breaks down an employee’s paycheck, will cost $200 per day, up to a maximum of $5,000 (previously $100 per week, up to a maximum of $2500).
3. The bill also explicitly prevents companies from attempting to avoid wage and hour liability by changing its ownership structure. The bill treats the new entity as the old entity where they are engaged in substantially the same work and working conditions, under the same supervisors, or if they have substantially the same production process.
4. The bill will also amend New York’s Limited Liability Corporation Law to hold the ten members with the largest percentage of ownership of an LLC jointly and severally liable for non-payment of compensation.