New 'Wage Theft Prevention Act' Carries Hidden
Burdens for Employers Who Play by the Rules

   New York’s new "Wage Theft Prevention Act," which was signed last month by outgoing Gov. David Paterson, imposes hidden new burdens on all employers.

   In December, the Assembly approved the measure 89-42. It had passed the Senate June 30.

   The mandate-laden bill is designed to protect workers from employers who "steal" their earnings by paying less than minimum wage, misclassifying them as independent contractors, or forcing them to work off the clock. Violators would have to pay back wages plus another 100 percent in damages -- even if the violation was inadvertent rather than deliberate.

   But employers who faithfully comply with labor laws will incur new administrative burdens as a result of this new law.

   Effective April 12, 2011, you will have to furnish every employee – at the time of hire and annually thereafter – a written notice stating their pay rate, basis for pay (shift, day, week, salary, commission), and other information. The wage notice must be printed in both English and the employee's "primary language" if other than English. You must obtain from the employee written acknowledgment of the notice and keep it on file for six years.

Read the Statute