HIGH RISK ALERT:“FREQUENCY OF PAY”

Employers: High Risk Alert: “Frequency of Pay” Lawsuits

New York State Labor Law 191 requires all employers to pay certain employees

every week. Those employees are called “manual laborers” by statute, but that

definition is very broad. Jobs which have been found to be covered include retail

worker, hairdresser, pharmacist, and driver. Those findings are based on an

interpretation that any worker who spends 25% or more of their time doing

“physical work” falls under the law.

Up until a couple years ago, employers who were found to be in violation were

fined by the State Labor Department and that was the end of it. In 2019, a State

Appellate Court upheld a private right of action in these cases. This means that

employees can now bring lawsuits against their employers for violating this

provision- and they are. In droves. And the liability is staggering.

interest, plus costs, plus attorneys’ fees; plus, plus, plus....

Penalties for violating this “frequency of pay” provision include liquidated

damages: All wages that were not paid timely -even if the employee was in

fact paid in full the following week.

This means that, if you have been paying a worker every other week for the past

six (6) years, you will owe them at least half that entire amount again – plus

Employers- check your payroll practice. If you pay every other week (or less

frequently), check your employee roster and job descriptions. Unless your staff is

comprised entirely of desk jobs with no other duties, you probably need to

change the way you are doing things. The cost of not making the change is very

high.