Employers are no longer required to annually distribute a notice of wages to their employees pursuant to New York Labor Law section 195.1 (otherwise known as the New York Wage Theft Prevention Act). The requirement to distribute this notice and obtain each employees’ acknowledgment of receipt between January and February 1 of each year was repealed, effective immediately, as part of a series of amendments to the law that were signed by Governor Cuomo in the final days before of 2014.
Employers are still required, however, to provide the written notice of wage rates to all new hires and obtain their written acknowledgment of receipt. In addition, the recent amendments to the law provide that violations of the notice requirements or other provisions of the state wage laws will result in substantially more punitive consequences for employers including:
- exponentially increased penalties;
- individual liability for the top ten members of a limited liability company that breaches the wage laws;
- Successor liability for a prior employer’s breach of the wage laws; and
- Special reporting obligations in the event of a recurring, willful or egregious breach of the wage laws.
New York employers should consult with local counsel if they have questions about their obligations under the wage laws.