The New York State Legislature has limited damages for first-time violations of New York’s pay frequency law, which requires that manual workers be paid weekly. The amendment to New York Labor Law (“NYLL”) § 198(1-a) resolves a split between the New York Appellate Division’s First and Second Departments and provides some relief to employers, while maintaining the threat of significant damages for repeat offenders.
With a measure of predictability finally provided on this issue, employers in New York should ensure their manual workers are paid on a weekly basis to avoid liability.
Background
NYLL § 191(1)(a) requires that, “[a] manual worker shall be paid weekly and not later than seven calendar days after the end of the week in which the wages are earned.”[1] The NYLL defines a “manual worker” broadly as a “mechanic, workingman or laborer.” For most of the statute’s existence, the sole enforcement mechanism available was civil penalties imposed by the New York Department of Labor.
Finding of a Private Right of Action
In 2019, the Appellate Division, First Department, held in Vega v. CM & Assoc. Constr. Mgmt., LLC, that, in addition to enforcement by the Department of Labor, the pay frequency law could be enforced by private lawsuits, and individuals could recover “liquidated damages” equal to the amount of the late-paid wages. Prevailing plaintiffs could also be awarded attorney’s fees and prejudgment interest.
In combination with New York’s six-year statute of limitations for wage claims, this decision led to significant monetary liability for delayed payment of manual workers, a violation which had previously carried minimal risk. Unsurprisingly, this caused a flood of class-action litigation by manual workers against employers.
In January 2024, the Appellate Division, Second Department issued a decision in Grant v. Global Aircraft Dispatch, Inc., disagreeing with Vega and finding that no private right of action was available for frequency-of-pay claims. While the decision injected some uncertainty around the issue, the majority of courts that examined the issue adopted Vega and continued to hold that private suits and liquidated damages were available.
2025 Amendment to the New York Labor Law
To curb the influx of lawsuits and limit liability for businesses, Governor Hochul signed legislation on May 9, 2025, which struck a middle ground between Vega and Grant.
Under the amended NYLL, so long as the worker was paid regularly and at least semi-monthly, damages for a first violation of the pay frequency law are limited to 100% of the lost interest due for the delayed payment of wages.
For conduct after May 9, 2025, liquidated damages equal to the amount of delayed wages are available where, after that date, the employer has been subject to one or more findings or orders by the Department of Labor or court for a pay-frequency violation relating to the same class of employee.
The amended law prevents businesses from incurring massive liability for pay frequency violations in the first instance, while maintaining the penalty of liquidated damages for employers who refuse to come into compliance after an adverse finding.
Takeaways for Employers
Crucially, the amendment to the NYLL’s pay frequency law applies to currently pending claims. Employers currently facing actual or threatened litigation over pay frequency for manual workers may now be in a far more advantageous position with respect to potential damages.
In addition, employers with manual workers should take this opportunity to ensure their pay practices, including frequency of payment, comply with New York law.
