New York Wage Payment Law | Wage And Pay Collection In NY

Table Of Contents

Frequency of Wage Payments
Manner of Wage Payments
Direct Deposit
Payroll Card
Payment upon Separation from Employment
Wages in Dispute
Deductions from Wages
Uniforms, Tools, and Other Equipment Necessary for Employment
Pre-hire Medical, Physical, or Drug Tests
Notice of Wage Reduction
Statement of Wages (Pay Stub)
Record Keeping Requirements
Notice Requirements

Frequency of Wage Payments

An employer must pay:

manual workers: weekly and no later than seven (7) calendar days after the end of the week in which the wages were earned, unless the employer has obtained permission from the commission to pay employees less frequently, not to exceed semi-monthly.
railroad workers: on or before Thursday of each week the wages earned during the seven-day period ending on Tuesday of the preceding week.
commission salespersons: at least once per month and not later than the last day of the month following the month in which the wages were earned.
clerical and other workers: not less frequently than semi-monthly, on regular pay days designated in advance by the employer.

NY Labor Law 191

Manner of Wage Payments

An employer may pay an employee by:

cash
check that is a negotiable instrument and the employer does not impose any fees in connection with the check including fees for replacing lost or stolen checks
direct deposit
payroll card

NY Labor Law, Art. 6, 192; NY Admin. Rules 192-2

Direct Deposit

New York labor laws allow an employer to pay wages by direct deposit subject to the following conditions:

the employee consents in writing to be paid by direct deposit except for a bona fide executive, administrative, or professional capacity whose earnings are in excess of $900 a week and employees working on a farm not connected with a factory
the employer must maintain a copy of the employee’s consent during the duration of the employee’s employment and for six (6) years following the last payment by direct deposit
the employer must provide the employee with a copy of the written consent
the direct deposit must be made to a financial institution selected by the employee

NY Admin. Rules 192-2.2

Payroll Card

New York labor laws allow an employer to pay wages by payroll card subject to the following conditions:

the employee consents to being paid by payroll card
the employer does not begin any action to pay an employee who has given consent for at least seven (7) business days
the employer provides local access to one (1) or more automated teller machines that offers withdrawals at no cost to the employee
the employer provides the employee at least one (1) method to withdraw up to the total amount of the wages owed to the employee each pay period or balance remaining on the payroll card without the employee incurring a fee
an employer or agent may not directly or indirectly charge the employee a fee for any of the items listed below:
- application, initiation, loading, participation or other action necessary to receive wages or to hold the payroll debit card;
- point of sale transactions;
- overdraft, shortage, or low balance status;
- account inactivity;
- maintenance;
- telephone or online customer service;
- accessing balance or other account information online, by interactive voice response through any other automated system offered in conjunction with the payroll debit card, or at any ATM in network made available to the employee;
- providing the employee with written statements, transaction histories or the issuer’s policies;
- replacing the payroll debit card at reasonable intervals;
- closing an account or issuing payment of the remaining balance by check or other means;
- declined transactions at an automated teller machine that does not provide free balance inquiries; or
- any fee not explicitly identified by type and by dollar amount in the contract between the employer and the issuer or in the terms and conditions of the payroll debit card provided to the employee.
The employer or its agent may not deliver payment of wages by payroll debit card account that is linked to any form of credit, including a loan against future pay or a cash advance on future pay (issuers are permitted to cover an occasional inadvertent overdraft transaction if there is no charge to the employee).
The employer may not pass on any of its own costs associated with a payroll debit card account to an employee
The employer may not receive any kickback or other financial remuneration from the issuer, card sponsor, or any third party for delivering wages by payroll debit card.
The employer or its agent may not deliver payment of wages by payroll debit card unless the agreement between the employer and issuer requires that the funds on a payroll debit card shall not expire; however, the agreement may provide that the account may be closed for inactivity provided that the issuer gives reasonable notice to the employee and that the remaining funds are refunded within seven (7) days.
At least 30 days before any change in the terms and conditions of a payroll debit card takes effect, the employer must provide written notice in plain language, in the employee’s primary language or in a language the employee understands, and in at least 12-point font of any change to the terms or conditions of the payroll debit card account including any changes in the itemized list of fees. If the issuer charges the employee any new or increased fee before 30 days after the date the employer has provided the employee with written notice of the change in accordance with the provisions of this subdivision, the employer must reimburse the employee for the amount of that fee.
Where an employee is covered by a valid collective bargaining agreement that expressly provides the method or methods by which wages may be paid to employees, the employer must also have the approval of the union before paying by payroll card.

NY Admin. Rules 192-2.3

Payment upon Separation from Employment

Employees who are fired, discharged, terminated, or laid off

When an employee is discharged from employment by the employer, the employer must pay the employee all wages due no later than the regular pay day for the pay period in which the discharge occurred. The wages due must be mailed if so request by the employee. NY Labor Law 191

An employer must notify any employee terminated from employment, in writing and within five (5) days, of the exact date of such termination as well as the exact date of cancellation of employee benefits connected with such termination. In no case shall notice of such termination be provided more than five (5) working days after the date of such termination. NY Labor Law 195

Employees who quit or resign

New York does not have a law specifically addressing the payment of wages to an employee who quits, however, to ensure compliance with known laws, an employer should pay employee all wages due no later than the regular pay day for the pay period during which the separation from employment occurred.

Employees who are suspended or resigns due to a labor dispute (strike)

New York does not have a law specifically addressing the payment of wages to an employee who leaves employment due to a labor dispute, however, to ensure compliance with known laws, an employer should pay employee all wages due no later than the regular pay day for the pay period during which the separation from employment occurred.

Termination notice

New York wage payment laws required employers to notify terminated employees in writing of the exact date of the termination and the exact date any benefits will be cancelled. The employer must provide the terminated employee the written notice within five (5) days of the termination. NY Labor Law 195

Wages in Dispute

New York does not have any laws requiring an employer to pay an employee wages conceded to be due when involved in a wage dispute with the employee.

Deductions from Wages

New York law does not permit employers to deduct:

cash shortages,
inventory shortages,
loss of or damage to their property,
required uniforms
required tools or other items necessary for employment

An employer may deduct wages from an employees paycheck only if:

it is permitted by state or federal law, NY Labor Law 193(1)(a);
the employee has expressly authorized the deduction in writing and the deduction is for, NY Labor Law 193(1)(b):
- insurance premiums,
- prepaid legal plans,
- pension or health and welfare benefits,
- contributions to charitable organizations,
- purchase made at events sponsored by a charitable organization affiliate with the employer where at least 20 percent of the profits are contributed to the charitable organization,
- U.S. bonds, union dues or assessments,
- union dues or assessments,
- discounts for parking, tokens, fare cards, vouchers, or other items enabling the employee to use mass transit,
- fitness center, health club, or gym dues,
- for employees at hospitals, colleges, or universities only, cafeteria or vending machine purchases made at the employer’s place of business or purchases made a gifts shops operated by the employer,
- pharmacy purchases made at the employer’s place of business,
- tuition, room, board, and fees for pre-school, nursery, primary, secondary, or post-secondary educational institutions,
- day care and before and after-school care expenses,
- for employees at non-profit hospitals and their affiliates, payments for housing provided at no more than market rates,
- similar benefits of the employee, which cannot exceed 10 percent of the employee’s total gross wages or salary for a pay period (See NY Regs., Title 12, Sec. 195.1).
it is for overpayment of wages due to a mathematical or clerical error of the employer, NY Labor Law 193(1)(c);
it is for repayment of salary or wage advances made by the employer, NY Labor Law, Art. 6, 193(1)(d).

A valid collective bargaining agreement may serve as an employee’s written authorization for deductions. NY Labor Law 193(1)(b)

An employer must notify an employee as soon as practicable before any substantial changes to the deductions from an employee’s wages are made. NY Labor Law 193(1)(b)

The employee’s written consent to any deduction must be kept on file on the employer’s premises for the duration of the employee’s employment and for six years after the employee’s employment ends.

NY Labor Law 193(1)(b)

An employee may revoke his or her written authorization for any deduction at any time and the employer must stop the deduction after such revocation as soon as possible and, in no case, no more than four pay periods or eight weeks after the employee has revoke the deduction, whichever is sooner. This rule does not apply in situations where the employee’s deductions are authorized by a collective bargaining agreement. NY Labor Law 193(2)(c)

Deductions for purchase made at charitable events, cafeteria, vending machine, and gift shop purchases at hospitals, colleges, or universities, pharmacy purchases at an employer’s place of business, and similar type deductions, are subject to the following limitations:

the employer must set a maximum aggregate amount an employee may spending in a pay period,
an employee may set a maximum aggregate amount they will permit to be deducted in a pay period, but such amount may not exceed the maximum aggregate amount set by the employer,
the employer must enforce the lower of the two maximum aggregate amounts,
the employee must have access to records detailing the expenditures made by the employee and the amount to be deduct from his or her wages. The employee must be able to access the records and obtain a printed copy of them at no expense.

NY Labor Law 193(2)(b)

Uniforms, Tools, and Other Equipment Necessary for Employment

New York does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment.

Pre-hire Medical, Physical, or Drug Tests

New York does not have any laws prohibiting an employer from requiring an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment.

Notice of Wage Reduction

An employer must notify an employee of any change to his or her wage rate at least seven (7) calendar days before the hours are worked at the new wage rate. NY Labor Law 195

Statement of Wages (Pay Stub)

An employer must furnish each employee with a statement with every payment of wages, listing:

the dates of work covered by the pay check;
the name of the employee;
the name of the employer;
the employer’s address and phone number;
the employee’s rate or rates of pay and basis thereof (by hour, shift, day, week, salary, piece, commission, or other);
gross wages earned;
deductions taken;
allowances taken (tips, meal, lodging, etc.);
an net wages earned
the employee’s regular hourly rate or rates of pay, if the employee is not exempt;
the overtime rate or rates of pay, if the employee is not exempt;
the number of regular hours worked, if the employee is not exempt;
the number of overtime hours worked, if the employee is not exempt;
the applicable piece rate or rates of pay if the employee is paid by piece;
the number of pieces completed at each piece rate if the employee is paid by piece;
if the employer is a railroad corporation, the employee’s accrued total earning, taxes to date, and a listing of daily wages and how they were computed

NY Labor Law 195

Record Keeping Requirements

An employer must establish, maintain and preserve for not less than six (6) years payroll records showing each employee’s:

the hours worked each week;
rate or rates of pay and basis thereof (by hour, shift, day, week, salary, piece, commission, or other; gross wages);
deductions;
allowances taken (tips, meals, lodging, etc.);
net wages;
regular hourly rate or rates of pay, if the employee is not exempt;
the overtime rate or rates of pay, if the employee is not exempt;
the number of regular hours worked, if the employee is not exempt;
the number of overtime hours worked, if the employee is not exempt;
the applicable piece rate or rates of pay and number of pieces completed at each piece rate, if the employee is paid by piece

NY Labor Law 195

Notice Requirements

New York employers are required to give all employees at the time they are hired written notice of the following:

the employee’s rate of pay;
the employee’s overtime rate of pay, if the employee is subject to overtime requirements;
the basis on which they are paid (per hour, per shift, per week, piece rate, commission, etc.);
any allowances the employer intends to claim as part of the minimum wage, including tips, meals, and lodging;
the employee’s regular payday;
the employer’s name and any names under which the employer does business (DBA);
the physical address of the employer’s main office or principal place of business and the employer’s mailing address, if different;
the employer’s telephone number;
any other information as the NY Department of Labor deems material and necessary.

The notice must be provided to employees in English and their primary language, if their primary language is not English. NY Labor Law 195

In addition to giving the notice to their employees, employers must obtain written acknowledgment, signed and dated, from their employees that they have received the notice and a copy of the signed and dated notice must be provided to the employees. Employers must retain the signed and dated notice and acknowledgment for six (6) years. NY Labor Law 195

The New York Department of Labor has created templates in English and other languages employers may use to fulfill their notice requirements. See NY DOL Employment Laws/Labor Standards Forms According to the DOL, if it has not provided a template for the primary language of an employee, the employer is only required to provide the employee the notice in English. See NY DOL: Guidelines for Written Notice of Rates of Pay and Regular Payday

An employer must inform employees of any changes in the terms and conditions of employment listed above at least seven (7) calendar days before the changes will take effect, unless the changes are reflected on the required statement of wages (pay stub). NY Labor Law 195

Fringe benefits notice

New York wage payment laws require employees to notify employees either in writing or by public posting of the employer’s policies on sick leave, vacation leave, personal leave, and holiday leave and hours. NY Labor Law 195