New York Paycheck Laws

The paycheck laws of New York fall under the umbrella of New York employment laws. Employment law is the law that applies to employees and employers relating to the terms and conditions of employment in the workplace.

As a regulatory department of the federal government, the DOL has the authority to create federal regulations that the department deems necessary to create and enforce labor-related laws and policies that Congress has enacted. One such law concerns pay and wages. In addition to the DOL, each state has its own departments of labor.

In the state of New York, the New York Department of Labor (NYDOL) is the state agency that is responsible for enforcing workplace laws and regulations. It ensures that employees in New York receive all of the wages that they have earned under state wage and hour laws.

Specifically, NYDOL is responsible for the following:

• Investigating wage complaints that involve minimum wage, payment of wages, overtime pay, holiday premium pay, and leftover vacation pay upon termination;
• Investigating complaints related to child labor, parental and family medical leave, and industrial homework;
• Ensuring compliance with all labor laws in the state of New York.

It is important to recognize that the state of New York has strict labor laws. New York employers who fail to pay wages according to the state’s labor laws can be charged with a misdemeanor criminal offense for their first violation. A second violation committed within 6 years of the first is a felony. This is New York’s late paycheck penalty.

The maximum punishment is 1 year and 1 day in prison and payment of a fine of $20,000. Knowing violations by corporate executives and corporations that allow non-payment of required wages or benefits may incur criminal punishment, including fines and imprisonment.

What Are New York Minimum Wage Laws?

It is important to note that New York workers are entitled to be paid at least an hourly minimum wage rate. Minimum wage rates change. The rates in New York are set to change on 01/01/2024. A person should consult the NYDOL website at https://dol.ny.gov/minimum-wage-0 to find out what the most recent wage rates are.

The requirement to pay an hourly minimum wage rate applies to fast food workers, nail salon workers, and tipped workers. However, the minimum wage rate in New York varies depending on the region in which the employee works. NYDOL even provides a “Minimum Wage Lookup Tool” to help workers calculate their minimum wage.

Specifically, the paycheck laws in New York are found under the New York Consolidated Laws and Labor Laws. The following is an overview of the Minimum Wage Rate Schedule provided by NYDOL: An employer could be found to be violating New York’s local minimum wage laws and shorting their employee on their paychecks. In that case, their employees may file a claim with the NYDOL.

Is an Employer Required to Pay for a Minimum of 4 Hours in New York?

Generally, employers are required to pay employees who report to work for the following number of hours at the basic minimum hourly wage regardless of how many hours they may actually work:

• At least 4 hours;
• The number of hours in the regularly scheduled shift.

The employer may pay whichever amount is the lesser amount. The employee must be paid if they report to work at the request of the employer or with the employer’s permission. Employees in most industries are entitled to call-in pay, but there are some limited exceptions.

When Must Paychecks Be Sent Out in New York?

New York law requires that employers with manual employees pay their employees weekly, except for an employer that is a nonprofit or has received authorization from the state commissioner to pay their employees on a semi-monthly basis.

Additionally, railroad workers must also be paid on a weekly basis, and there is no exception to this pay rate obligation as there is for manual workers.

Salespeople in New York who are paid on commission are entitled to payment only once a month, with any incentive and other bonus payments required to be paid out in accordance with a set payment schedule or as noted in their executed employment contract. All other workers in New York must be paid on a semi-monthly basis. However, an employer that has the right to pay on a semi-monthly basis is allowed to pay their employees more frequently.

What Happens if You Are Fired in New York?

If a person is fired from their job in New York, they are still entitled to be paid in full for all of the wages that they worked. Specifically, New York’s final paycheck law states that whenever an employee is terminated, quits, resigns, or is laid off, the employer must pay that employee all wages owed by their next regular payday. Further, the final paycheck must also be made available at their usual place of payment.

For employees who were terminated as a result of a business being liquidated, merging with another business, or the business moving out of state, the employer must pay all wages within 24 hours of the time of separation of the employee and employer. The wage payment must also be made at the usual place of payment.

This means that for a final paycheck in New York, the exact rules depend on the manner in which the employee’s position with the company ended.

Additionally, assume the company had a written policy to provide paid vacation or sick days. In that case, that amount should also be paid when an employee leaves a job unless the company has a written forfeit policy for paid leave.

What Happens if My Paycheck Is Late in New York?

If a person is an employee of New York and believes that their employer did not pay them on time or failed to send them their final paycheck as required by law, then they should submit a wage complaint to the NYDOL.

Once again, an employee’s unpaid wages are due from their employer at the next regular payday and at their usual place of payment. The employee and employer may not be able to resolve the issues regarding the employee’s paycheck being late. If that is the case, the employee has the legal right to initiate a civil lawsuit against their employer for improperly withheld paychecks.

Can My Paycheck Be Garnished in New York?

Under New York wage laws, New York employers may not set off or garnish an employee’s wages for things such as:

• Money owed due to any alleged damages caused by the negligence of the employee;
• Money allegedly owed for rental of any equipment provided by the employer to the employee;
• Any other money allegedly owed to the employer by the employee as a result of the employee’s employment.

For all of the above debts, the employer must take legal action through the court systems and be awarded a court order before they can seek to garnish an employee’s wages. A court order or other official documentation is thus typically required for the garnishment of wages in connection with debts owed to third parties in New York.

For instance, a common way in which an employer may have to deal with a garnishment of wages is when the employer receives a court order to garnish the wages as a result of child support that is owed, defaulted student loans, or unpaid taxes.

New York law does allow for very specific deductions from an employee’s paycheck, such as union dues and charitable donations. However, that employee’s written authorization is required for most of those deductions.

Can You Recover a Withheld Paycheck in New York?

As mentioned above, yes, an employee is legally entitled to receive compensation for all of the time they worked. As such, New York law provides employees with specific protections against improperly withheld paychecks from their employees. The law allows an employee to submit a wage complaint with the NYDOL Division of Labor Standards (“DLA”) or initiate a private civil lawsuit against their employer to recover a withheld paycheck.

In either case, an attorney who is familiar with the paycheck laws of New York state is typically beneficial in helping an employee recover any lost wages. This is especially true in cases in which the lost wages stem from unpaid vacation hours, holiday pay, or cases involving employees who have worked at a business for longer than a year’s time.

Further, in cases where an employee and employer executed an employment agreement, that contract may govern the payment of withheld wages. As such, an attorney would be beneficial in reviewing that contract and assisting the employee in recovery of any withheld paychecks.

What Else Do I Need to Know About Paycheck Laws in New York?

In addition to the above wage laws, the New York Wage Theft Prevention Act (“WTPA”) requires that every paycheck a New York employee receives contains information about their pay rate and hours. For any paycheck that is missing all of the information required, an employer can be fined $250 per day per instance of the missing information.

New York employers are also required to provide a written notice to each new employee about their wages, such as their rate of pay and the basis for said rate. They are also required to provide notice to any employee of any changes made to the information initially provided to them.

If the above notices about paychecks are not provided, then employers can be fined $50 per day per employee. Employees can also sue their employer for not providing them with the information required under the WPTA, but each employee is limited to recovering only $5,000 in damages.

Where Can You Find the Right Lawyer for Paycheck Concerns in New York?

As can be seen, the laws in New York provide many legal protections for New York employees concerning payment of their wages. If you believe that your employer has violated New York paycheck law, it is important to consult an experienced New York employment lawyer.

LegalMatch.com can connect you to an experienced New York employment lawyer who will be able to assist you in making your best legal case for recovering any lost wages, as well as holding your employer responsible for violating state laws. Additionally, an attorney will also be able to initiate a civil lawsuit, if necessary, and represent your interests in court.