Archives: New York State

Subscribe to New York State RSS Feed

New York City Poised To Enact Paid Sick Days

New York City is expected to join the ranks of the growing number of jurisdictions which require private sector employers to provide paid sick days to employees.  The legislation, which is expected to be passed shortly by the City Council, reflects a compromise between advocates for such legislation, opponents within the business community and Council … Continue Reading

Progress Towards NY Minimum Wage Hike

Reports indicate that the New York State legislature and Governor Cuomo have tentatively reached agreement regarding the terms of the anticipated proposed increase in the state’s minimum wage. As portrayed in news coverage, the latest proposal would increase the minimum wage to $8/hour in 2014, $8.75/hour in 2015 and $9/hour by 2016, but not tie further … Continue Reading

New York Judge Rejects Interns’ Novel Argument That Paying School Tuition Is An Indirect Wage Deduction

In the latest chapter in the ongoing intern battles currently being waged in the United States District Court for the Southern District of New York, Judge Harold Baer rejected plaintiffs’ novel assertion of unlawful wage deductions. Wang v. Hearst Corp., 2013 U.S. Dist. LEXIS 3768 (S.D.N.Y. Jan. 9, 2013). The Wang litigation concerns the applicability of the … Continue Reading

Second Circuit Asks New York Highest Court for Clarity As To Who May Participate In a Tip Pool

Under New York law, a customarily tipped employee cannot be forced to share tips with an employer or its “agent”. In 2009, a New York federal judge ruled that Starbucks did not violate the New York Labor law (specifically Section 196-d) by permitting shift supervisors at New York Starbucks to receive tips from the coffee … Continue Reading

WTPA Damages Provision Not Retroactive

New York’s Wage Theft Prevention Act does not apply retroactively to violations occurring before the April 2011 effective date (regardless of whether suit already had been filed or not), according to a decision from the Eastern District of New York. Quintanilla v. Suffolk Paving Corp., 2012 U.S. Dist. LEXIS 132469 (E.D.N.Y. Sept. 17, 2012). The Court … Continue Reading

New York Appeals Court Upholds Moving Industry Victory in Prevailing Wage Dispute With NYC

In a victory for the (always bustling) New York City moving industry, the Appellate Division, First Judicial Department has upheld a May 2011 trial court victory won by an industry association challenging the City Comptroller’s prevailing wage determination for the industry. Matter of Metropolitan Movers Assn., Inc. v. Liu, 95 A.D.3d 596 (1st Dep’t 2012). … Continue Reading

New York Legislature Amends Deduction Statute, Providing Greater Flexibility

The New York state legislature has passed the proposed amendment to N.Y. Labor Law § 193, broadening the scope of permissible deductions from wages under New York law to include, among other items, recoupment of overpayments based on clerical errors. The amended statute will also permit deductions to pay for certain common employer-provided benefits, such as … Continue Reading

New York’s Highest Court Addresses Liability for Bonuses

An unsettled fertile area of litigation in New York has been the circumstances under which various types of incentive compensation—such as bonuses—become “earned” as wages and thus entitled to the protections of the New York Labor Law, which provide greater remedies than common law claims for breach of contract.  In a recent decision, New York’s … Continue Reading

NY Senate Approves Repeal of Dreaded “Wage Theft Prevention Act” Annual Notification Requirement

Calling the New York Wage Theft Prevention Act’s annual notice requirement a waste of millions of dollars – and 51 million pieces of paper! – New York State Senators yesterday voted to repeal the Act’s annual notice requirement.  This narrower repeal, which is limited to the notice provision (and not the other provisions of the … Continue Reading

SDNY – Executives Cannot Claim Unpaid Wages Under New York Labor Law, And Individual Liability Under Contract Claims Is Limited

Separated executives often assert wage claims following cessation of employment and big dollars are usually at issue. Important questions then arise, including principally: 1) whether the executive can assert a claim under the New York Labor Law; and, 2) just as importantly, who is responsible for any monies owed. A new decision issued by recently-appointed Judge Paul … Continue Reading

New York To Consider Proposed Minimum Wage Increase

As widely reported (including here and here), a bill will be introduced today in the New York Assembly to raise the state’s minimum wage from $7.25 to $8.50, beginning next year. Specifics of the proposed increase are not yet available. This push comes as no surprise to students of the state’s minimum wage, which has historically outpaced … Continue Reading

New York Employers Must Issue First Annual Wage Theft Prevention Act Notice In January 2012

New York’s landmark Wage Theft Prevention Act, which was recently modified and adopted in California, requires employers to issue to all New York employees an annual notice complying with the requirements of New York Labor Law § 195 (as amended by the Act). While the statute was effective in April 2011, the annual notice requirement, which … Continue Reading

Manhattan Appeals Court Rejects Senior Executive’s Claim for Alleged Unpaid Incentive Compensation

Pursuant to New York State Department of Labor guidance and New York case law, incentive compensation is not considered “wages” unless it is “earned.” See generally Truelove v. Northeast Capital & Advisory, Inc., 95 N.Y.2d 220, 225 (2000). Accordingly, disputes over an employee’s entitlement to incentive compensation in New York often turn on whether a particular bonus, … Continue Reading

New York State Department of Labor Issues Pro-Employer Gratuity Distribution Guidance

New York employers have struggled with the New York State Department of Labor’s view that all gratuities must be distributed on a daily basis, regardless of whether they are collected in cash or via credit card and regardless of employee preference.  Late last week, without notice, the NYSDOL modified this position.  Effective immediately, New York … Continue Reading

NYSDOL Issues Wage Theft Act Forms Just Ahead of April 9 Effective Date

The New York State Department of Labor has provided model forms to comply with the Wage Theft Prevention Act.  Also included are instructions for completing the forms and  Guidelines for complying with the Act’s revisions to N.Y. Labor Law § 195.  Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable … Continue Reading

New York Restaurant Litigation Continues…Claims A Casualty?

Despite the recent revised Hospitality Wage Order, the culmination of a multi-year process seeking to bring clarity to the at-times murky wage/hour regulations governing New York restaurants, litigation over these issues continues unabated. This phenomenon was ably remarked upon in a recent New York Times editorial by Zagat’s guide founder Nina Zagat. Now, the most recent installment … Continue Reading

Southern District of New York Judge Ratifies Legality of Participation in Tip Pool By Captains and Banquet Coordinator

While the New York State Department of Labor’s new Hospitality Industry Wage Order clarified many wage and hour issues for industry employers, the appropriateness of tip pool participation of certain categories of employee continues to be an area of uncertainty. On January 13, 2011, Federal District Judge Laura Taylor Swain granted summary judgment to Manhattan restaurant … Continue Reading

The New York State Department of Labor in 2011: New Rules, Stiffer Penalties

As reported here and here, the New York Department of Labor will have a full plate in 2011 enforcing both the new Hospitality Industry Wage Order (applicable to industry employers) and the Wage Theft Prevention Act (applicable to all employers in New York). The Hospitality Wage Order modifies many of the rules governing industry employers, and … Continue Reading
LexBlog