May Tip of the Month: New York Eases Penalties for First-Time Pay Frequency Violations
On May 9, 2025, Governor Kathy Hochul signed into law significant amendments to the New York labor law, providing relief to employers in connection with frequency-of-pay violations. Previously, New York employers who failed to pay manual workers—broadly defined as employees who spend more than 25% of their time performing a range of physical tasks—on a weekly basis faced potential liability equal to 100% of the late-paid wages, even if the wages were ultimately paid.
Effective May 9, 2025, employers who commit a first-time pay frequency violation but who otherwise paid their manual workers on a regular payday occurring at least semi-monthly, are now only subject to liquidated damages equal to the lost interest on the late payment, rather than 100% of the late-paid wages. Importantly, employers who commit certain repeat violations remain subject to liquidated damages equal to 100% of the late-paid wages. While this amendment provides meaningful relief for first-time violators, the consequences of repeat violations remain severe. Employers should closely assess whether even modest amounts of physical labor may render their employees “manual workers” and, in turn, review and audit their frequency-of-pay practices.
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