Thanks to recent legislation enacted by New York State, employers are no longer required to provide Annual Wage Notifications to their employees. Previously employers were required to provide Annual Wage Notifications to all employees by February 1 (and to all new hires upon acceptance of employment).
While the annual notices are no longer required, employers must continue to provide the Wage Notices to every new hire and to any employee who has a change in their pay plan or rate of pay.
Employee and New Hire Wage Notice Requirements
When providing the notices ensure that the Wage Notices specify:
1. Employer's business information;
2. When the Notice is provided;
3. Employee's rate(s) of pay;
4. Allowances taken (if any);
5. Regular pay day;
6. Frequency of payments;
7. Overtime rate of pay (if applicable); and
8. Employee acknowledgment.
Employers must obtain a signed and dated written acknowledgment from each employee confirming that the Wage Notice was provided. Copies of these records (including the employee acknowledgment) must be maintained for a minimum of six (6) years.
It is important to remember that employers must also provide a separate Commission Agreement to all employees who are eligible to receive commissions. The Commission Agreement must be attached to the Wage Notice.
The Wage Notices must be provided in the employee's primary language (if the New York State Department of Labor publishes a template notice in that language). Currently the templates are provided in English, Spanish, Chinese, Russian, Haitian Creole, Polish, and Korean.
Penalties & Damages
Employers are liable for all unpaid wages (plus interest), reimbursement of the employee's attorneys' fees, and liquidated damages for nonpayment or underpayment of wages in the amount of 100 percent of wages due (unless the employer can prove a "good faith basis" for believing that its underpayment of wages was in compliance with legal requirements).
In addition, an employee who does not receive the Wage Notice within ten (10) business days of his or her first day of employment may bring a civil action to recover damages of $50 for each workweek that the violation occurred, up to $2,500, plus costs and reasonable attorneys' fees. Similarly, for existing employees, failure to provide the Wage Notice can result in a civil action and damages of $100 per week, per employee, for each week the violation occurred, up to $2,500, plus costs and reasonable attorneys' fees.
What to Do if You Have Questions
If you have any questions about how to complete the Wage Notice or about which form you should use call Stevan LaBonte at 516-280-8580 or send an e-mail to slabonte@labontelawgroup.com.