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Frequency of Pay Issues for “Manual Workers” Continue to Rise in New York

May 2, 2023

Are you Paying your Manual Workers in a Timely Fashion?

Frequency of Pay Issues for “Manual Workers” Continue to Rise in New York

While many businesses across the country pay on a bi-weekly schedule, New York employers need to be cautious when determining pay frequency for their employees, especially those who could be considered “manual workers”. Anyone who qualifies as a manual worker under New York law is supposed to receive wages every week and being paid biweekly is considered being paid late and the penalty can be steep. Under New York State Labor Law the penalty is 100% of the late wages for the last six years. A 2019 ruling in Vega v. CM & Associates Construction Management sustained the New York Department of Labor’s enforcement of this weekly payment rule and allowed a private right of action (meaning employees could sue employers), triggering an escalation of similar lawsuits. Employers may be subject to payment of damages even if the employee has been fully compensated for their hours of work. Increasingly, these claims are being brought as large class action suits. New York’s definition of manual worker is any employee who spends at least 25% of their day on manual or physical labor. Examples of manual workers under New York State Department of Labor standards may include retail workers, stockers and warehouse workers, airline workers, home aides and nursing assistants, food service workers, supermarket employees, security guards, porters, janitors, and skilled laborers. Many other employees perform physical labor as part of their jobs, and they could also be covered by New York frequency of pay laws. These claims can be disastrous for businesses of all sizes. To avoid liability New York employers should determine whether they have “manual workers,” and if so, take steps to ensure that wages are paid in a timely manner. Even an unintentional misclassification of an employee could result in significant liability. Employers are strongly encouraged to review their payroll practices and ensure all workers are paid on the proper schedule.

Topics:

Labor

Regulations

State:

New York

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Frequency of Pay Issues for “Manual Workers” Continue to Rise in New York

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