S T A T E O F N E W Y O R K
________________________________________________________________________
10610
I N A S S E M B L Y
June 20, 2024
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Zebrowski)
-- read once and referred to the Committee on Labor
AN ACT to amend the labor law, in relation to penalties for frequency of
pay violations
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The opening paragraph of subparagraph (ii) of paragraph a
of subdivision 1 of section 191 of the labor law, as amended by chapter
168 of the laws of 1993, is amended to read as follows:
The commissioner may authorize an employer [which has in the three
years preceding the application employed an average of one thousand or
more persons in this state or has for one year preceding the application
employed an average of one thousand or more persons in this state and
has for three years preceding the application employed an average of
three thousand or more persons outside the state] to pay less frequently
than weekly but not less frequently than semi-monthly if the employer
furnishes satisfactory proof to the commissioner of its continuing abil-
ity to meet its payroll responsibilities. In making this determination
the commissioner shall consider the following:
§ 2. Subdivision 1-a of section 198 of the labor law, as amended by
chapter 362 of the laws of 2015, is amended to read as follows:
1-a. A. On behalf of any employee paid less than the wage to which he
or she is entitled under the provisions of this article, the commission-
er may bring any legal action necessary, including administrative
action, to collect such claim and as part of such legal action, in addi-
tion to any other remedies and penalties otherwise available under this
article, the commissioner shall assess against the employer the full
amount of any such underpayment, and an additional amount as liquidated
damages, unless the employer proves a good faith basis for believing
that its underpayment of wages was in compliance with the law. Liqui-
dated damages shall be calculated by the commissioner as no more than
one hundred percent of the total amount of wages found to be due, except
such liquidated damages may be up to three hundred percent of the total
amount of the wages found to be due for a willful violation of section
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15803-01-4
A. 10610 2
one hundred ninety-four of this article. NOTWITHSTANDING THE PROVISIONS
OF THIS SUBDIVISION, LIQUIDATED DAMAGES SHALL NOT BE APPLICABLE TO
VIOLATIONS OF PARAGRAPH A OF SUBDIVISION ONE OF SECTION ONE HUNDRED
NINETY-ONE OF THIS ARTICLE WHERE THE EMPLOYER PAID THE EMPLOYEE WAGES ON
A REGULAR PAYDAY, NO LESS FREQUENTLY THAN SEMI-MONTHLY. SUCH VIOLATIONS
SHALL BE SUBJECT TO DAMAGES AS FOLLOWS:
(I) NO MORE THAN ONE HUNDRED PERCENT OF THE LOST INTEREST FOUND TO BE
DUE FOR THE DELAYED PAYMENT OF WAGES CALCULATED USING A DAILY INTEREST
RATE FOR EACH DAY PAYMENT IS LATE BASED ON THE ANNUAL RATE OF INTEREST
THEN IN EFFECT, AS PRESCRIBED BY THE SUPERINTENDENT OF FINANCIAL
SERVICES PURSUANT TO SECTION FOURTEEN-A OF THE BANKING LAW FOR THE
EMPLOYER'S FIRST VIOLATION; OR
(II) THREE HUNDRED PERCENT OF THE LOST INTEREST FOUND TO BE DUE FOR
THE DELAYED PAYMENT OF WAGES CALCULATED USING A DAILY INTEREST RATE FOR
EACH DAY PAYMENT IS LATE BASED ON THE ANNUAL RATE OF INTEREST THEN IN
EFFECT, AS PRESCRIBED BY THE SUPERINTENDENT OF FINANCIAL SERVICES PURSU-
ANT TO SECTION FOURTEEN-A OF THE BANKING LAW FOR ANY EMPLOYER SUBJECT TO
A PREVIOUS ORDER ISSUED UNDER SECTION TWO HUNDRED NINETEEN OF THIS CHAP-
TER FOR VIOLATION OF PARAGRAPH A OF SUBDIVISION ONE OF SECTION ONE
HUNDRED NINETY-ONE OF THIS ARTICLE FOR WHICH NO PROCEEDING FOR ADMINIS-
TRATIVE OR JUDICIAL REVIEW AS PROVIDED IN THIS CHAPTER IS PENDING AND
THE TIME FOR INITIATION OF SUCH PROCEEDING SHALL HAVE EXPIRED AND RELAT-
ING TO EMPLOYEES PERFORMING THE SAME WORK; OR
(III) FOR A VIOLATION OCCURRING AFTER THE EFFECTIVE DATE, LIQUIDATED
DAMAGES EQUAL TO TWENTY-FIVE PERCENT OF THE TOTAL AMOUNT OF THE WAGES
FOUND TO BE PAID IN VIOLATION OF PARAGRAPH A OF SUBDIVISION ONE OF
SECTION ONE HUNDRED NINETY-ONE OF THIS ARTICLE IF THE EMPLOYER, AFTER
THE EFFECTIVE DATE, HAS BEEN ISSUED TWO OR MORE SEPARATE ORDERS UNDER
SECTION TWO HUNDRED NINETEEN OF ARTICLE SEVEN FOR VIOLATIONS OF PARA-
GRAPH A OF SUBDIVISION ONE OF SECTION ONE HUNDRED NINETY-ONE OF THIS
ARTICLE FOR WHICH NO PROCEEDING FOR ADMINISTRATIVE OR JUDICIAL REVIEW AS
PROVIDED IN THIS CHAPTER IS PENDING AND THE TIME FOR INITIATION OF SUCH
PROCEEDING SHALL HAVE EXPIRED AND RELATING TO EMPLOYEES PERFORMING THE
SAME WORK.
B. FOR PURPOSES OF THIS SUBDIVISION, AN ORDER UNDER SECTION TWO
HUNDRED NINETEEN OF THIS CHAPTER SHALL CONSTITUTE A SINGLE ORDER REGARD-
LESS OF THE NUMBER OF EMPLOYEES OR THE TIME PERIOD THAT WAS SUBJECT TO
SUCH ORDER.
C. In any action instituted in the courts upon a wage claim by an
employee or the commissioner in which the employee prevails, the court
shall allow such employee to recover the full amount of any underpay-
ment, all reasonable attorney's fees, prejudgment interest as required
under the civil practice law and rules, and, unless the employer proves
a good faith basis to believe that its underpayment of wages was in
compliance with the law, an additional amount as liquidated damages
equal to one hundred percent of the total amount of the wages found to
be due, except such liquidated damages may be up to three hundred
percent of the total amount of the wages found to be due for a willful
violation of section one hundred ninety-four of this article.
§ 3. This act shall take effect immediately and shall apply to causes
of action pending or commenced on or after such effective date.