The Wage Theft Prevention Act took effect in New York State on April 9, 2011 and affects every employer who has at least one employee located in New York.  This new law, among other things, provides enhanced rules against retaliation of employees who make complaints, makes payroll record requirements part of the law, requires employers to give each employee a wage statement or pay stub each payday, and provides higher penalties when an employer fails to pay the wages that are required by law.  Information about the full extent of the Wage Theft Prevention Act can be found at the New York State Department of Labor’s website.

In addition, beginning in 2012, every employer must provide all New York State employees with an ANNUAL WRITTEN NOTICE to employees of their wage rate.  The notices must be given to each new hire and to ALL employees by February 1^st of each year.  The notice must include the following:

1. Rate or rates of pay, including overtime rate of pay (if applicable);
2. How the employee is paid (i.e. by the hour, shift, day, week, commission, etc.);
3. The employee’s regular pay date;
4. The official name of the employer and any other names used for business (DBA);
5. Address and phone number of the employer’s main office or principal location; and
6. Allowances taken as a part of the minimum wage (i.e. tip, meal and lodging deductions).

The notices must appear both in English and in the employee’s primary language.  Employers must ensure that each employee signs and dates the completed notice and provide a copy to each employee.  If any information in the notice changes, employees must be notified at least a week before it happens unless employers issue a new paystub that carries the notice.  Employees must be notified in writing before their wage rates are reduced.  Employers in the hospitality industry are required to give notice every time a wage rate changes.

Do you employ even one person in New York State?  If so, you could have to pay damages of up to $50 per week, per employee, for violations of the notice provisions of the Wage Theft Prevention Act.  Small businesses are not exempt from these requirements, so be sure to confirm that your business is in compliance with the notice provisions of the Wage Theft Prevention Act by February 1, 2012.  There are specific guidelines available on the New York State Department of Labor’s website that address how this law applies to Temporary Employment Agencies.

If you have any questions about how the Wage Theft Prevention Act applies to you or your business, The McHattie Law Firm can help.

(Abigail Nickerson)