New York Enacts Documentation & Record-Keeping Requirements for New Hires and Enhances Penalties for Wage and Hour Violations
Effective October 26, 2009, all new hires of New York employers must be provided with written notice advising them of their: (1) rate of pay and the regular pay day; and (2) regular hourly rate and overtime rate of pay (if overtime-eligible).
In addition, employers must obtain a written acknowledgement from employees confirming receipt of this notice. The Commissioner of Labor has yet to establish the content employers must include in the written acknowledgment. In the interim, employers are advised to include this information in offer letters, which should be acknowledged and signed by new hires and then retained in personnel files as proof of compliance.
Employers failing to comply are subject to civil penalties of up to $1,000 for a first violation, $2,000 for a second violation, and $3,000 for a third violation. Notably, failure to comply with both the notice and acknowledgement requirements may de deemed to constitute two separate violations.
The New York Legislature also recently increased the penalties for and scope of wage and hour violations. Effective November 24, 2009: (1) successful litigants will be entitled to liquidated damages of 25% of any underpayment "unless the employer proves a good-faith basis for believing its underpayment complied with law"; (2) penalties for retaliating against employees who assert their rights under New York's wage and hour laws will increase from a range of $200-$2,000 to $1,000-$10,000; and (3) officers and agents of LLCs and partnerships will have personal liability for wage and hour violations.
