| Update Applicable to: | Effective Date |
| All Employers in New York | May 9, 2025 – Immediately |
What happened?
On May 9, 2025, Governor Kathy Hochul signed amendments to the New York Labor Law through the 2026 State Budget. These changes significantly reduce the financial exposure of employers in lawsuits overpay frequency violations involving manual workers. The amendments apply to both pending and future cases.
Overview:
Who is Affected: Manual workers, defined as employees who spend at least 25% of their time performing physical labor, including roles like drivers, retail staff, and restaurant workers.
What Changes: Employers are required to pay manual workers weekly.
- Previously, courts allowed workers to sue and recover 100% of delayed wages, even if they were paid in full but not weekly.
- This led to a surge in lawsuits and high potential damages due to a six-year statute of limitations.
New Rules (Effective May 9, 2025):
- First-time violations: If wages are paid at least semi-monthly on a regular payday, employees can only recover interest on delayed wages (currently 16% annually).
- Repeat violations: Employers with a prior final violation may still owe 100% of delayed wages as liquidated damages.
- Applies to all cases filed or pending on or after May 9, 2025.
What Employers Should Do: identify manual workers in their workforce, ensure they are paid weekly or at least semi-monthly on a consistent schedule, and regularly review payroll practices for compliance.
Source References
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