News & Events
news & events / 05.28.25 /Jack Malley
Governor Hochul Signs Law Limiting Penalties for Violations of Pay Frequency Law
On May 9, 2025, Governor Hochul signed an amendment of New York Labor Law (“NYLL”) that will likely curtail the avalanche of pay frequency lawsuits that have been filed in New York courts since 2019.
The increased filings were caused by the Appellate Division, First Department’s 2019 decision in Vega v. CM & Associates Construction Management, LLC. Prior to that decision employees did not have a private right of action for violation of NYLL § 191(1), which requires employers to pay manual workers at least weekly. However, in Vega the First Department held that employees had the right to sue their employers and recover up to the full amount of wages not paid on time as liquidated damages even if the employer merely paid the employee a week late on a bi-weekly payroll schedule.
The amendment does not bar private actions for violation of NYLL § 191(1). Instead, it amends NYLL § 198 (which sets forth penalties for violation of NYLL) to limit the penalties employers can suffer in a lawsuit for violation of the pay frequency law. It provides for penalties to increase in severity if the employer has been guilty of a previous violation. Under the amendment first offenders who have paid employees no less than every two weeks are only on the hook for the interest due on delayed wage payments. However, employees can recover liquidated damages in the amount of wages not timely paid if the Department of Labor had issued a prior violation of NYLL § 191(1) to the employer after May 9, 2025.
The amendment was effective as of May 9, 2025, and applies to active lawsuits as of that date. Employers should note that the new law does not provide any relief for employers who have failed to pay wages for more than one week.
Key Takeaway for Employers:
This amendment offers welcome protection for businesses that unintentionally violate the pay frequency law for the first time. But repeat violations will expose employers to significant financial liability consistent with the test set forth in Vega.
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