The New York Wage Theft Prevention Act was passed in 2011 to help prevent wage and hour breaches as well as other workplace issues in New York State. Pursuant to this Act, employers are required to provide written notification of an employee’s wage rates.
Both current staff and newly hired employees must receive these notifications.
In accordance with the Act, the written notice has to include:
If necessary, the notification should be written in English and the employee’s first language.
Under New York labor laws, an employer can be held accountable for violating the New York Wage Prevention Act. An employer may receive a citation or be subject to civil fines for major violations.
In addition, if the violation resulted in losses for an employee, the company may be required to legally compensate them. This may include a judgment of damages and additional actions, for example, revising the corporate guidelines.
Violations can be reported to a New York state agency, such as the Department of Labor. A government agency such as the EEOC may investigate more significant violations or bring a private lawsuit.
If an employer fails to provide the required wage notice to their employees, they may face significant penalties in the form of damages. Pursuant to the WTPA, an employer is required to pay up to $250 per day for each employee if the requirements are not met.
If an individual has any questions about their employer failing to pay the required wages under the WTPA, they should consult with a local New York lawyer.
Any subcontractor, also referred to as a sub, that the general contractor (GC) hires on a construction project is subject to liability. In order to ensure that the subs are fairly paying their employees, the GC will be required to closely monitor the movement and activities of the subcontractors on a construction project.
The New York Wage Theft Prevention Act was first used to protect all employees from wage theft. However, a worker had to go directly to their employer, the sub, to complain about their pay.
With the recent modifications to the Wage Theft Prevention Act, workers will have easier access to the GC at the top of the project hierarchy. If salaries are not paid at the sub-level, GCs are typically in a better financial position than a sub.
This law urges GCs to take a more active role in the project management of subs as well as ensure compliance with the new amendments by all businesses that are involved in a construction project. The multiple layers of red tape that are often associated with construction projects distinguish them from other business sectors.
A union or a merit-shop sub may employ a worker. A GC will frequently pay these organizations on a project, whether it is with a fixed fee or time or materials assignment. The New York Wage Theft Prevention Act previously could not accommodate situations in which a worker may be awaiting payment from their union or sub. However, those organizations have not yet been paid for the labor they performed on the job.
Prior to the 2022 amendment for all outstanding wages, a worker could find themselves in a precarious situation.
A general contractor should work with a well-established subcontractor who has a track record of paying their employees and being a well-organized organization in order to protect themselves. However, this may be easier said than done in a field with a severe labor shortage.
A worker can report wage fraud at any time. If a worker thinks they are being exploited or wants a second opinion about their pay stub, they are entitled to obtain one.
There are several steps that a general contractor can take in order to guarantee that their claims are straightforward and their records are consistently correct. The following section outlines steps they can take.
When a general contractor is trying to keep up with the new wage theft amendments, there are some important questions the GC should consider, such as:
A general contractor should have procedures or technology in place to have accurate records of when workers arrive and depart from the work site. If and when a general contractor reviews the wage and hour records of subcontractors, it can serve as a useful reference.
A general contractor has to legally file WH-347 forms. The federal government requires this form to be used when a worker works for the government.
If the answer to this question is yes, there is a higher chance that a general contractor may be held responsible for unpaid workers on a building job.
Manual tracking often results in gas in information. It is important to invest in a reliable automated time and attendance system that will provide a general contractor with accurate workforce information on their construction sites.
A general contractor should enter into subcontractor agreements with their subs that require the subcontractor to defend, hold harmless, and indemnify the general contractor against any wage and hour disputes that may emerge from a subcontractor’s failure to pay its workers fairly.
In order to ensure accurate time and attendance management, it is ideal to employ the same systems and procedures in both the public and private sectors. Working with a company a GC can trust to fairly pay employees also provides protection.
However, as a GC, it is wise to avoid leaving that issue to chance. A general contractor has to ensure that they keep accurate records of time and attendance.
It is important to introduce tools that support maintaining correct workers on all sites. There are many systems that allow general contractors to export data to existing project management programs that may be in use, for example, Procore or Autodesk.
One of the first steps in complying with the 2022 amendments to the New York Wage Prevention Act includes accurate worker logs or time and attendance on the job. A dispute is more difficult to resolve if a contractor can fill in accurate workforce logs.
The party that has the best and most accurate evidence will typically prevail in any argument. Every employee in the city of New York is required to carry these cards in order to enter into a construction site.
The cards workers bring with them to the job site should reflect accurate time and attendance.
If you have any issues, questions, or concerns related to the New York Wage Theft Prevention Act, it is essential to consult with a New York employment attorney. Your attorney can defend you during any formal proceedings as well as assist you with submitting a claim based on this Act.
Your lawyer can review your case and determine if your employer violated the Act. If you are an employer, your lawyer can help you defend against any claims or lawsuits filed against you.
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