New York employers: There may be some good news on the horizon in defending against pay frequency claims.
As a reminder, New York Labor Law Section 191 requires employers to comply with certain pay frequency requirements, including but not limited to paying manual workers on a weekly basis.
In 2019, the Appellate Division First Department’s held in Vega v. CM & Associated Construction Management, LLC that employees could bring a private right of action seeking liquidated damages for violating this pay frequency requirement.
Last week, the New York Appellate Division Second Department issued a decision in Grant v. Global Aircraft Dispatch, Inc., explicitly declining to follow Vega and ruling that no private right of action exists to recover liquated damages or attorneys’ fees for pay frequency violations.
That same day, Governor Hochul released a proposed Executive Budget for the 2025 fiscal year (link below), which includes proposed legislation that would amend the NYLL to confirm that liquidated damages are NOT available for violating NYLL Section 191’s pay frequency requirements as long as the employee was paid at least semi-monthly.
The Governor’s memorandum in support of this legislation notes that it was specifically in response to the Vega decision, reasoning that ‘[l]awsuits of this kind are increasing in frequency against large and small businesses and resulting in large payouts for workers and plaintiffs’ attorneys, causing some employers serious financial harm.”
We are closely watching to see whether the proposed legislation will be passed. In the meantime, on balance, given the split in the caselaw on the issue, New York employers should continue to pay manual workers on a weekly basis.
Stay tuned.
Education, Labor and Family Assistance Article VII Bill | FY 2025 NYS Executive Budget