New York Limits Damages in Frequency of Pay Cases
The New York State Department of Labor explains that state law “requires manual workers to be paid weekly, and clerical and other workers at least twice per month.” If pay frequency laws are violated, affected workers can seek compensation. However, recently, New York lawmakers took action to limit the damages that can be sought in frequency of pay claims. Here, our New York City wage and hour attorney discusses the legislative reform in more detail.
Background: An Overview of Pay Frequency Laws in New York
Under New York Labor Law § 191(1)(a), employers are required to pay manual workers weekly—no later than seven calendar days after the end of the week in which the wages are earned. The term “manual worker” is broadly defined. Among other things, it includes employees who spend more than 25 percent of their working time performing physical labor. Everything from drivers to hair stylists to retail workers are covered.
A Court Decision Changed the Law in New York in 2019
For many years, pay frequency cases were considered administrative issues in New York. Civil penalties were imposed by the New York State Department of Labor (NYSDOL). However, a 2019 appellate court decision (Vega v. CM & Associates Construction Management, LLC) changed the law. It allowed manual workers to take private legal action to seek liquidated damages equal to 100 percent of the delayed wages—even if the wages were eventually paid in full.
It was a big case in wage and hour law in New York State. There was a significant increase in the number of class action pay frequency lawsuits. However, in 2024, a different appellate court in New York held that there was no private right of action at all in these cases. That created a judicial split that needed to be resolved by the state’s highest court. It also prompted a response from state lawmakers to resolve the conflict.
New York Lawmakers Change Pay Frequency Claim Rights in Latest Budget
Effective as of May 9th, 2025, New York State Labor Law § 198(1-a) has been amended to include new limitations on damages for pay frequency violations. Here is an overview of the two key points that employers and employees should know about the law going forward in New York State:
- First-Time Violations: If an employer pays manual workers on a regular payday at least semi-monthly, the damages for a first-time violation are limited to the lost interest on the delayed wages. That figure is calculated using a daily interest rate based on the annual rate set by the Department of Financial Services.
- Repeat Violations: For employers with one or more prior findings and orders for pay frequency violations, liquidated damages equal to 100 percent of the delayed wages are recoverable for subsequent violations that happened on or after May 9th, 2025
Speak to Our New York City Wage and Hour Lawyer Today
At Poulos LoPiccolo PC, our New York City wage and hour attorneys are standing by, ready to advocate for your rights and your interests. Have questions about a frequency of pay issue? We can help. Contact us right away for a fully private, no obligation consultation. We handle wage and hour cases in New York City and throughout the surrounding region.
Source:
dol.ny.gov/frequency-pay#:~:text=New%20York%20State%20Labor%20Law,of%20Pay%20Frequently%20Asked%20Questions
