New York lawmakers have passed three wage-and-hour bills that could soon expand employee wage protections in the state. The legislation, which would separately address wage transparency, pay documentation, payroll deductions, and how employers should interpret state labor law, hasn’t yet been signed by Governor Kathy Hochul. While Hochul has approved other significant workplace legislation during her tenure, it’s unclear if that approval will also come with the expectation that lawmakers will pass agreed-upon changes when they reconvene. If signed in their current form, the bills would take effect immediately, although the Wage Payment Integrity Act would apply only to actions filed on or after its effective date. This Insight will cover everything New York employers need to know.
Bonus and Incentive Pay
The most significant bill for many employers is the Wage Payment Integrity Act. If enacted, it would amend New York Labor Law Section 190 to provide that “wages” include employment compensation that is not payable at the employer’s “sole and absolute discretion.” Bonuses and other forms of compensation would not be considered discretionary – and therefore excluded from “wages” – unless the employee is notified in a “clear, prominent, timely and uncontradicted” way that the employer has sole and absolute discretion to decide whether to make the payment.
The bill does not limit an employer’s ability to offer discretionary bonuses. But employers will need to be clear about...
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