New York has a long history of maintaining a state minimum wage higher than that provided for at the federal level under the Fair Labor Standards Act. However, New York State minimum wage has remained harmonized with federal law at $7.25/hour since July 24, 2009 (though New York’s “tip credit” minimum wage for the hospitality industry … Continue Reading
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
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’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
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
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
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
In addition to the FLSA and New York Department of Labor’s (NYSDOL) Wage Orders, both of which contain minimum wage and overtime requirements, pursuant to Article 8 of the New York Labor Law, employers in New York may be required to pay “prevailing wage” to workers employed on public works projects, (There is a separate … Continue Reading
As most employers know, the United States Department of Labor has extensive regulations regarding the nature and scope of records employers covered by the Act must maintain. See 29 CFR § 516.1, et seq. Many state laws contain analogous provisions. See, e.g. NY Labor Law § 195. While violations of these recordkeeping requirements can lead to civil penalties, (standing alone … Continue Reading
Like many states with state wage and hour laws, the New York Labor Law contains certain unique provisions. One such provision is Section 198-c, which addresses an employee’s right to recover “wage supplements” such as reimbursement for expenses, health, welfare and retirement benefits and vacation, separation or holiday pay.. Section 198-c expressly provides that its provisions shall not apply to any person in a bona fide executive, administrative, or … Continue Reading
As recently discussed here¸ a properly drafted commission agreement is essential in New York (and every state) to minimize exposure to a variety of claims, including claims for alleged unpaid commissions and improper wage deductions. In fact, in New York and other states, a written signed commission agreement is required pursuant to state law, absent … Continue Reading
In a recent decision, the Honorable Eileen Bransten of the Supreme Court of the State of New York, New York County, reinforced to all employers the need to utilized well-drafted commission agreements. The court considered a claim from a real estate broker alleging that she was not paid commissions and bonuses for sales that she … Continue Reading
Business owners, supervisors and managers performing services for corporate entities often believe that liability for wage and hour violations can be imposed solely on the incorporated entity. To the contrary, as demonstrated by a recent New York Federal Court decision, various theories support individual liability under both federal and, in this case, New York State law. … Continue Reading
The Supreme Court dealt a blow to New York wage-and-hour defendants sued in federal court last week, overruling established precedent requiring plaintiffs bringing New York Labor Law (“Labor Law”) class actions in federal court to waive the 25% liquidated damages “penalty” in order to proceed on a class basis. In Shady Grove Orthopedic Assocs., P.A. … Continue Reading
While in New York all employees are at-will absent contractual language to the contrary, an employer may (intentionally or unintentionally) create a “contract” with an employee governing certain terms of employment (such as bonus compensation) without destroying the at-will nature of employment. Properly drafted and agreed upon, such a contract can preclude employees from later … Continue Reading
