New York Wage Theft Prevention Act Becomes Law

Governor Paterson Signs Into Law The Wage Theft Prevention Act

Governor Paterson signed into law a comprehensive bill, S 8380/A 11726, the Wage Theft Prevention Act. The bill addresses employer failure to pay mandatory minimum wages and overtime due to employees, thereby requiring annual notifications of wages, expanding notifications, strengthening available remedies for wage law violations and enhancing whistleblower protections.

Governor Paterson said, “At a time when so many New Yorkers are living paycheck to paycheck, it is vital that we protect the right to receive their hard-earned pay and afford them every protection against wage theft.” Governor Paterson also commended the bill’s sponsors, Senator Diane Savino and Assemblyman Carl Heastie, for their work in securing the passage of the bill. “The Wage Theft Prevention Act has sent a message out to the thousands of workers who are simply trying to provide for their families-New York is a much safer place now,” said Senator Savino. Both Savino and Heastie commended the protection of workers. Assemblyman Heastie said, “This common sense law will protect workers and also, bring more fairness to the workplace.”

Important Elements of the Wage Theft Prevention Act include:

  • More stringent and transparent record-keeping and employee notification requirements
  • Increases in the amount of wages that can be recovered as damages in a lawsuit for non-payment over and above the lost wages themselves, as consistent with federal law (from 25% to 100%)
  • Creation of stronger collection tools
  • Increased criminal penalties for failure to pay minimum wage, and
  • Strengthens protections for whistleblowers in cases involving wage violations

The New York Wage Theft Prevention Act is effective on or about April 10, 2011.

For additional information please visit the New York State Legislature or the New York State Department of Labor.