In recent years, New York employers have faced significant lawsuits brought under the New York Labor Law (“NYLL”) by “manual workers” seeking large sums in damages if they were not paid on a weekly basis, even if the worker had been paid their wages in full. The 2025 New York State Budget amends the NYLL, providing employers with long-awaited relief from these claims. The amendment to the NYLL, which was signed into law by Governor Hochul, modifies the damages provisions for frequency of pay violations.

Now, manual workers are not automatically entitled to liquidated damages equal to the untimely paid wages so long as the employer paid the manual worker “on a regular payday, no less frequently than semi-monthly.” Instead, damages are now limited to “the lost interest found to be due for the delayed payment of wages,” which is currently set by law at 16% per year. However, the amendment includes strict penalties for repeat offenders. Employers with a prior history of violations may still face full liquidated damages for future violations.

The amendment is already in effect and applies to both pending and future claims. Going forward, although damages in frequency of pay claims are limited, employers must pay their manual workers on a weekly basis in order to comply with applicable law and avoid penalties. 



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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.