Posted on 16-Sep-09 by The Timekeeper

If you’re an employer in New York state, there are some new wage and hour regulations you need to be aware of. Here are a few highlights:

• If an employer is found guilty of failing to pay wages to an employee, the Department of Labor can now assess an additional amount of liquidated damages against the employer in an amount equal to 25% of the wages due, unless the employer proves there was a good faith basis to believe that any underpayment complied with the law. The burden of proof rests with the employer to show the underpayment was based on reasonable grounds. As I understand it, previously, the employee had to show they were entitled to the damages and could only recover by filing a civil suit. (Note, this 25% is in addition to any other penalties or payments the employer might be required to make.)
• The penalties have been significantly increased for employers who retaliate against their employees for filing wage and hour claims. I’ve previously mentioned that retaliation — in addition to being illegal — is just bad form. Now if you’re in NY, it’s going to be a lot more expensive, too.
• The officers and agents of of limited liability partnerships (LLPs) and limited liability corporations (LLCs) can now be held personally liable for violations of the state’s wage and hour laws by their LLC or LLP. No more hiding behind the “limited liability” defense if you mistreat your employees.
• The state’s Commissioner of Labor’s powers of enforcement have been expanded… for instance, allowing the commission to collect and liquidated damages through administrative proceedings as well as by filing civil actions.

Beyond that, effective October 26, 2009, employers must provide new hires at the time of hire with some new notifications: their rate of pay and the regular payday designated by the employer. Plus, if the employee is eligible for overtime, the employer must also document the employee’s overtime pay rate. All this must be in writing and you must get the employee’s signature to document they received the notice.

If you’re an employer in New York state, now would probably be a good time to have a sit-down with your labor law advisor to make sure you’re in compliance with the new wage and hour rules.

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