The New York State Wage Theft Prevention Act: Who Does This Law Benefit?

The New York State Wage Theft Prevention Act: Who Does This Law Benefit?

The following blog appeared in the January 24, 2012 edition of The NY Report (http://nyreport.com/new_york_state_wage_theft_prevention_act)…

In 2010, the powers that be in Albany passed the New York State Wage Theft Prevention Act, requiring employers to notify new employees hired after Oct. 26, 2009, in writing of their: (1) regular pay rate and, if applicable, rate of overtime pay; and (2) regular pay date.  Beginning April 9, 2011, however, the act required this written notice to be provided both at the time of hire and to all existing employees between January 1 and February 1 of each subsequent year.

Exactly who does this law benefit?

It certainly does not benefit business owners, who face stiff penalties for wage, notice and recordkeeping violations.

In addition to the six-page Frequently Asked Questions, Guidelines and Instructions, this notice must be provided to all employees in English and the language identified by the employee as his or her primary language (the form is readily available in Chinese, Korean and Spanish).

But wait, there’s more…

There are actually seven different forms, depending on whether each employee is paid an Hourly Rate; Multiple Hourly Rates; a Weekly Rate or Salary for a Fixed Number of Hours (40 or fewer in a week); a Salary for Varying Hours, Day Rate, Piece Rate, Flat Rate or Other Non-Hourly Pay; for Prevailing Rate and Other Jobs and; finally, for Exempt Employees.

These stringent new requirements for all New York employers stipulate that they must obtain a signed and dated written acknowledgment from the employee confirming receipt that contains an affirmation by the employee that he or she accurately identified his or her primary language and received the notice in that language. The acknowledgment must be maintained by the employer for six years.

Simple (and not so simple) Math

According to the most recent US Census Bureau data, there are more than 7.3 million people employed in New York State.  That means that more than 51 million pages of paper are needed to comply with this law.  That is more than 600 trees.  Then there are the man-hours to process these forms, postage, and storage (physical and/or electronic) costs.

But if you act now…

It isn’t too late to do something about this.  On behalf of allNew YorkStateemployers, we urge you to contact your State Senators and ask them to consider repealing, or at least modifying, the New York State Wage Theft Prevention Act.  And, if you are totally confused as to how to be compliant with the law, contact Prestige Employee Administrators, your outsourced Human Resources company, who can help you.