New York Governor Proposes Reform to Scale-Back “Frequency of Pay” Litigation for Manual Workers
On January 15th, 2024, New York Governor Kathy Hochul announced the proposed state budget for Fiscal Year (FY) 2025. Tucked deep within the budget is a proposed provision that would radically scale-back the ability of workers in New York State to file so-called “pay frequency” lawsuits. Here, our New York City employment law attorney highlights the key things employees should know about the state of New York’s frequency of pay laws.
Background: No Private Right-of-Action for Frequency of Pay (Pre-2019)
Your job is your livelihood. With that in mind, it is crucial that all workers are paid in a reasonably timely manner. Unfortunately, that does not always happen. New York State law provides some important legal protections to workers regarding frequency of pay. Indeed, New York Labor Law (NYLL) Section 191 actually requires people classified as “manual workers” to be paid on a weekly basis instead of every other week. However, prior to 2019, individual manual workers did not have the right to sue for a violation. As there was no private right-of-action, any claim for a frequency of pay violation had to be initiated by New York labor regulators.
Legal Definition: A private right of action is a legal right granted to an individual or group to sue for relief or compensation in a civil court.
New York State Court Decision Opened Up Employee Lawsuit for Pay Frequency
In 2019, a state appellate court in New York changed long-standing legal precedence. The court found that an inherent private right of action did in fact exist within the New York Labor Law. As such, the court found that manual workers could sue for late pay. Soon after this ruling, a number of different class action lawsuits were filed on behalf of manual workers who were improperly denied weekly pay in violation of NYLL Section 191. Notably, some courts have even awarded these workers liquidated damages.
Proposed Reform to Eliminate Individual Worker Ability to Sue
In a move that would favor employers, New York State Governor Kathy Hochul has proposed a reform in the FY 2025 budget that would eliminate the private right of action for frequency of pay violations. Further, the proposed legal reform seeks to insert language into New York Labor Law that would eliminate the ability of manual workers to recover liquidated damages for violations of the frequency of pay law. To be clear, the proposal has not yet become law. It would need to be accepted in its current form by the legislature as part of the state’s budgeting process.
Contact Our New York City Employment Lawyer Today
At Poulos LoPiccolo PC, our New York employment attorney is proud to fight to protect the rights and interests of workers. Have questions about the pay frequency issues? We can help. Contact us right away to arrange your confidential, no commitment case review top-tier attorney. Our firm provides legal representation to employees in New York City and throughout the wider region.
Source:
governor.ny.gov/news/governor-hochul-announces-highlights-fy-2025-budget
