Archives: New York State

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The Confusing Array of Wage Hour Developments Impacting New York State Employers’ Wage and Hour Compliance

In prior posts, we have summarized the New York State Department of Labor’s most recent rulemaking processes, comprised of two separate wage boards. The first, in 2014, addressed the hospitality industry as a whole, while more recently, in 2015, another highly publicized wage board addressed the subset of that industry deemed “fast food.” Employers should … Continue Reading

New York’s Fast Food Wage Board Confirms: $15/Hour

In a televised meeting this afternoon, New York’s recently-convened Fast Food Wage Board confirmed industry employers’ fears and announced its unanimous recommendation that the wage for “fast food employees” in “fast food establishments” be increased to $15/hour by December 31, 2018 in New York City and by July 1, 2021 in the rest of New … Continue Reading

Manhattan Federal Court: Financial Firm Retained Discretion to Award or Not Award Bonus

As we recently noted in our discussion of Massachusetts law, incentive compensation has the potential to become “wages” protected by state labor law once it is “earned.” However, when an employer conveys to the employee that it retains discretion to award or not award incentive compensation in any specific amount, such potential incentive compensation (whether … Continue Reading

New York Introduces Regulations Concerning Use of Payroll Debit Cards

Like many states before it, New York today published new proposed regulations to provide “clarification and specification as to the permissible methods of payment [in New York], including [the use of] payroll debit cards.”  The proposed regulations require voluntary consent from employees paid pursuant to such a program, and set minimum program requirements for feeless … Continue Reading

New York “Fast Food Wage Board” Formally Convened

Responding to the Governor’s directive, Acting State Labor Commission Mario J. Musolino has empaneled a Wage Board to recommend a minimum wage increase for the fast food industry. Commissioner Musolino issued a determination regarding the inadequacy of the current minimum wage which states, “I am of the opinion that a substantial number of fast food … Continue Reading

Governor Cuomo Announces Wage Board to Review “Fast-Food Industry” Minimum Wage

In an op/ed piece appearing in yesterday’s New York Times, New York Governor Andrew Cuomo announced he would direct the Commissioner of Labor to convene a new Wage Board “to examine the minimum wage in the fast-food industry” in New York state. The Commissioner’s announcement follows on the heels of a separate op/ed suggesting this … Continue Reading

NY Acting Commissioner of Labor Issues Wage Board Order Reducing New York Tip Credit to $1.50

In New York, the cash wage due to tipped workers will increase to $7.50 at the end of the year, following an Order from acting Commissioner of Labor Mario Musolino. Commissioner Musolino accepted this recommendation from the Wage Board convened by his predecessor. This order will reduce the tip credit to $1.50/hour off the minimum … Continue Reading

New York Wage Board Issues Recommendation Regarding Tip Credit

Completing its task assigned by former Commissioner of Labor Peter Rivera, the current New York Wage Board has issued its recommended findings to the Commissioner with respect to tip credit issues.  Most importantly for hospitality employers – an industry sector which includes many small, low-margin businesses – if approved by the Commissioner, the available tip … Continue Reading

Second New York Judge Agrees Time Spent In Mandated Alcohol Treatment Meetings Did Not Constitute “Work”

Joining a decision issued last fall by Southern District of New York Judge Andrew Carter, Judge Ronnie Abrams has also ruled that time spent by New York City employees in alcohol counseling required by their job did not constitute “work.”  Gibbs v. City of New York, 2015 U.S. Dist. LEXIS 7960 (S.D.N.Y. Jan. 23, 2015). … Continue Reading

NY Legislature, Governor Cuomo Reach Agreement On Repeal of Annual Wage Notice

Business advocacy groups advise that the New York Legislature and Governor Cuomo have reached agreement on the Legislature’s already-passed legislation repealing the Wage Theft Prevention Act’s annual notice requirement.  Indeed, the Legislature’s web site confirms that S.5885-B has been delivered to the Governor.  Business groups believe a “chapter amendment” will be forthcoming in January, modifying … Continue Reading

With WTPA Amendments In Limbo, New York Employers Must Prepare for Another Round of “Those (Annual) Notices”

Despite passage in June by both chambers of the New York State Legislature, legislation repealing the 2011 Wage Theft Prevention Act’s “annual wage notice” has yet to take effect.  In fact, as of this writing, Governor Cuomo has not been presented with the bill for signature.  Because the legislation only takes effect 60 days after … Continue Reading

NYS Commissioner of Labor Issues Official Wage Board Charge

On Monday, New York Commissioner of Labor Peter Rivera formally issued his Charge to the recently convened 2014 Wage Board.  The Charge, available here, asks the Board to answer the following question: What modifications, if any, should be made to the required cash wage rates and the allowable credits for tips, meals, and lodging, for … Continue Reading

Manhattan Restaurant Prevails On Wage-and-Hour Claims Following Trial

Demoralized by the attendant costs of litigation and a shifting compliance environment in numerous jurisdictions, many hospitality industry employers have resolved wage-and-hour lawsuits brought in New York City and elsewhere over the last number of years.  Bucking this trend, one such employer recently successfully defended its wage practices at trial.  Mendez v. Int’l Food House, … Continue Reading

New York State Court Reiterates That Commissions Are Not Wages Until Earned

Ensuring contracts and agreements reflect when incentive compensation – usually “commissions” – is earned is of paramount importance to New York employers who wish to maximize their rights, as evidenced by a recent decision from New York County Supreme Court Justice Ellen M. Coin.  Sherwin v Mestel & Co. N.Y., LLC, 2014 N.Y. Misc. LEXIS … Continue Reading

Proposed Amendment To New York’s Wage Theft Prevention Act A Mixed Blessing for Employer Community

Following several rounds of lobbying and legislative proposals, both houses of the New York State Legislature this week passed a bill repealing the annual wage notice requirement (requiring a written notice during the month of January regardless of the timing of pay increases or date of hire) codified in New York Labor Law § 195 … Continue Reading

New York State Appellate Court Reinforces Employers’ Right To Define Terms of Vacation Policy

It is well-established under both New York court decisions and Department of Labor guidance that “a former employee is entitled to be paid for vacation pursuant to the ‘contract between the parties.’”  See Matter of Glenville Gauge Co. v. Industrial Bd of Appeals of State of NY, 70 AD2d 283 (1979).  A recent decision, in … Continue Reading

Supreme Court Declines Catsimatidis’ Invitation To Review FLSA Liability

Though the high court recently has accepted other petitions for certiorari on FLSA issues, today the Court declined Gristede’s owner and former NYC mayoral candidate John Catsimatidis’ request that the Court take up his case and review the imposition of individual liability imposed by the Second Circuit.  Catsimatidis v. Irizarry, 2014 U.S. LEXIS 1802 (2014).  … Continue Reading

New York Legislature’s Second “Fair Play Act” Enacted to Cover Commercial Goods Transportation Industry

On the heels of similar legislation passed in 2010 for the construction industry, and consistent with the state’s continuing focus on alleged misclassification of service providers as independent contractors, the New York state legislature recently passed the Transportation Industry Fair Play Act, N.Y. Labor Law § 862 et seq.  This legislation creates a “presumption of … Continue Reading

Second Circuit To Issue Important Guidance On Legal Standards Applicable To Unpaid Interns

Recognizing the need to provide clarity to the business community in light of voluminous litigation, the United States Court of Appeals for the Second Circuit recently agreed to hear appeals in the Fox and Hearst intern cases.  Glatt v. Fox Searchlight Pictures Inc., Case Number 13-2467, 11/26/13.  The Court will examine the different legal tests and … Continue Reading

New York’s New Miscellaneous Wage Order Tip Credit Provision to Impact Businesses Such As Car Washes and Salons

As discussed in greater detail here, the New York State Department of Labor’s revised Wage Orders, which were published in the administrative record on October 9, 2013 and set to become final by the time New York’s December 31 minimum wage hike becomes effective, implement a number of changes to the pay requirements and credits … Continue Reading
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