Employees’ Rights to Sue Employers for Late Wages: A Comprehensive Guide under New York Labor Law

In recent times, a noteworthy trend has emerged within the legal landscape, as employees are increasingly resorting to legal action against their employers for delayed wages under New York labor law. A pivotal decision from a New York State appellate court has provided further clarity on the matter, affirming that manual workers possess the right to sue their employers even if they have ultimately received their wages in full.

Understanding the Key Ruling: Weekly Pay for Manual Workers

The crux of this issue revolves around the frequency of wage payments. According to the recent court ruling, manual workers are entitled to receive their wages on a weekly basis rather than a biweekly one. What remains essential is the distinction between manual workers and administrative employees, determining who falls under the former category and who falls under the latter.

Alex Granovsky, an attorney at Granovsky & Sundaresh in New York City, aptly captures the nuances of this issue: “There are shades of gray. If you want to be the safest, err on the side of being conservative.” In other words, employers should lean towards classifying individuals as manual laborers to avoid potential legal pitfalls.

Granovsky further underscores the importance of this distinction, stating, “Compared to the liability, it seems like a small price to pay. The exposure is high, and it’s a funky little law that a lot of business owners don’t know about. … It’s an area where the liability and the standards against an employer are pretty strict.”

Ramifications of Non-compliance: Financial Consequences for Employers

The consequences for employers found to be in violation of the pay frequency law are far-reaching. In such cases, employers are not only obligated to pay the overdue wages in full but are also liable for attorney fees and interest. Kathryn Barcroft, a lawyer at Bleakley Platt & Schmidt in White Plains, N.Y., explains that even if manual workers are paid their due wages in the subsequent week, the employer is still mandated to pay liquidated damages—an estimate of the losses incurred by the plaintiff.

Stephanie Schuster, an attorney at Morgan Lewis in Washington, D.C., highlights the ongoing legal debates surrounding the extent of liability in cases initiated by employees. She notes that the situation is dynamic and subject to active litigation.

Scope of Application: Who’s Covered?

Private-sector employers are unequivocally governed by this rule. However, it’s important to note that federal, state, and local government employers are exempt. Additionally, charter schools, private schools, and not-for-profit corporations are subject to the rule. An interesting provision allows certain large employers to seek an exemption from the New York State Department of Labor. To qualify for this exemption, an employer must have an average of 1,000 or more employees in New York during the last three years or meet specific employee count criteria.

Challenging Liquidated Damages: Business Groups’ Perspective

In response to the imposition of liquidated damages, business groups have taken a stance by filing an amicus brief in support of their claim that these damages are excessive and misguided. This legal challenge underscores the ongoing complexities in this domain.

Deciphering Manual Workers: Beyond Job Titles

To accurately identify manual laborers within your workforce, it’s imperative to look beyond job descriptions and titles. The state’s definition of a manual worker encompasses mechanics, workingmen, or laborers who dedicate over 25 percent of their working time to physical labor. This category includes tasks such as heavy lifting, shelf stocking, unpacking, cleaning, and extended periods of standing and walking.

However, the pay frequency rule does not extend to those working in executive, administrative, or professional roles who earn more than $900 weekly. To qualify as an administrative employee, one must primarily engage in nonmanual fieldwork directly related to management policies or general operations while exercising discretion and independent judgment regularly.

Real Work on the Ground: Defining Manual Labor

It’s crucial to align job roles with reality, as tasks and workloads may shift over time. If an individual’s daily responsibilities involve manual tasks such as sweeping floors, they qualify as manual workers. This distinction emphasizes the importance of a practical perspective rather than relying solely on job descriptions.

Even situations where employees are exempt from overtime regulations might still fall under the purview of manual labor under the pay frequency law. Courts and the New York Department of Labor are inclined to interpret the manual worker definition broadly, as evidenced by Department of Labor opinion letters.

Conclusion: Navigating the Complexities of Wage Frequency

In conclusion, the landscape of wage frequency and manual worker classification under New York labor law is far from black and white. As the legal realm continues to evolve, employers must adopt a proactive approach to understanding the nuances of these regulations. By accurately identifying manual laborers, adhering to weekly pay frequencies, and staying abreast of evolving interpretations, businesses can mitigate potential liabilities and ensure compliance with the law. In this dynamic environment, knowledge and diligence stand as the pillars of informed decision-making for both employers and employees alike.