The New York State Legislature passed a bill that would increase the number of executive, administrative, and professional employees covered by Article 6 of the State’s Labor Law. The bill would increase the salary threshold for covered employees from $900 to $1300 per week.
The new law would require employers to pay the newly covered employees no less than bi-weekly or semi-monthly and obtain the employees’ written authorization to be paid by direct deposit. It would also allow more employees to file claims with the NYS Department of Labor (DOL) against employers who fail to pay or timely pay wages or any promised benefits or wage supplements (including reimbursement for expenses; health, welfare and retirement benefits; and vacation, separation or holiday pay). The DOL has the authority to investigate complaints, collect unpaid wages and wage supplements for employees, and impose penalties on employers.
The new law would not increase the salary threshold for classifying employees as exempt from minimum wage and overtime rules.
If Governor Hochul signs the bill, it will go into effect 180 days later. We will continue to monitor this and other pending bills and keep you updated.
Whether or not this law goes into effect, employers should make sure that their payment procedures comply with current state employment laws governing minimum wage, overtime pay, wage rate notices, pay frequency, direct deposit, sick and family leave, and severance, to name a few.
If you have any questions or concerns about compliance with federal, state and local employment laws, please contact Chaim Book at cbook@booklawllp.com, Sheryl Galler at SGaller@booklawllp.com, or Nadav Zamir at NZamir@booklawllp.com.
Disclaimer: The information provided in this blog post is for general knowledge purposes only and should not be considered legal advice. For specific guidance tailored to your situation, it is advisable to consult with a qualified employment law professional.
