Failure to Comply with “Wage Theft Prevention Act” Can Yield Huge Fines

In case you haven’t heard, the “Wage Theft Prevention Act” took effect in April 2011. This means that by February 1 (of each year) employers will have to give a written notice of wage rates to all of their employees. This is in addition to informing new employees of their wage rate at the time they are hired.

The notice must include all of the following information:

-how the employee is paid (hour, shift, day, commission, salary, etc)

-rate/rates of pay (including overtime if applicable)

-regular payday

-official name of employer & any other names used for the business

-address & phone number of employer’s principal location or main office

-allowances taken as part of the minimum wage

– e.g: tips, meal & lodging deductions

Another update is that the notices now must appear in both English and the employee’s primary language (as long as the NYS Department of Labor offers a translation). Also make sure to note that you MUST provide a notice even if your employee is not an hourly rate employee. Lastly, if any data in the notice changes you must issue a notice at least one week before the change occurs.

Employers must have every employee sign and date their completed notice. A copy must be provided for each employee and also stored by the employer for 6 years. Failure to do so can result in a fine of $50 per week per employee.

For more information, necessary forms, and language translations, go to the Department of Labor’s website.

As always feel free to contact an expert at Metropolitan Risk Advisory with any questions.