New York Wage and Hour Laws

Wage and hour laws govern wage disputes and other claims that arise in the workplace. These laws establish basic requirements and standards, including rules about minimum wage and overtime pay. If a New York employer violates any of these laws, they will face fines and other severe penalties.

As an employee working in New York State, you owe it to yourself to become familiar with the local wage and hour laws. It’s a way to protect yourself and ensure that your employer treats you fairly.

This article explores how state and federal laws affect employee rights and what to do if someone violates your rights. It examines minimum wage rates, paid family leave, and other issues that concern workers in New York City (NYC) and the rest of the state.

If you feel that your employer has violated the local wage and hour laws, contact an experienced employment law attorney. They’ll examine your situation and help you decide the best way to proceed.

The Department of Labor and Fair Labor Standards Act

In addition to New York’s wage and hour laws, there are federal laws that protect employees. One of the most important laws is the Fair Labor Standards Act (FLSA), which is governed by the U.S. Department of Labor (DOL). It protects employees from being taken advantage of by their employers.

Some of the provisions of the FLSA deal with:

• Minimum wage: The federal minimum wage has been $7.25 since July 24, 2009, but states are allowed to enforce their own minimum wage laws. New York offers one of the highest, with some areas maintaining a minimum wage rate of $17.00 per hour.
• Overtime: According to the FLSA, employers must pay overtime for any hours over 40 an employee works in a given pay week. The law also requires that companies pay overtime at a rate of at least 1.5 times that of the employee’s regular hourly rate.
• Tip regulations: Employers can charge a certain amount in tips toward a person’s minimum hourly rate. The minimum wage must be met if tips don’t make up the difference.
• Hours worked: An employer must count all hours a worker spends on duty. This applies to both on-site and remote workers.
• Child labor: The FLSA prohibits minors from working in jobs and under conditions harmful to their health or well-being. This includes working too many hours or being too young.
• Employer recordkeeping: Employers must keep records of workers’ hours and pay. A summary of the rules under the Fair Labor Standards Act must be prominently posted on the worksite.

The New York State Department of Labor maintains its own set of employment laws that protect workers living in the state, such as the New York minimum wage laws and rules regarding independent contractors.

Important New York Wage and Hour Laws

Many New York state laws mirror federal laws. For example, when it comes to overtime, New York follows the FLSA. Employers must pay their employees time and a half if they work more than 40 hours in a given work week. Let’s take a closer look at some of the more important New York wage and hour laws.

Minimum Wage Requirements

The minimum wage is $17 per hour in New York City, Westchester County, and Long Island. In all other counties, the rate is $16 per hour, which is still far above the federal rate. New York’s minimum wage laws apply to both part-time and full-time employees. If you work in New York and your hourly wage is less than $16.00, your employer is violating the law.

Overtime Rules in New York

New York’s overtime laws are similar to the FLSA laws. Any employee who works more than 40 hours in a normal work week is entitled to time and a half. This higher rate applies only to the hours exceeding the 40-hour limit.

For example, let’s say that your regular rate of pay is $20 per hour. As of the close of business on Friday, you have worked your normal 40 hours. Your boss asks you to work hours over the weekend when you are normally off, and you end up working six hours of overtime. You would be entitled to six hours at the rate of $30 (one and a half times your regular rate of $20 per hour) on top of your regular pay.

New York State labor laws don’t require companies to pay their staff overtime if they work more than eight hours in a given day or shift. Only hours that exceed the regular 40-hour work week are paid at time and a half.

Meal, Rest, and Break Laws

Under New York law, you’re not automatically owed a paid meal break. While there are some legal requirements, much will depend on your employer’s policies and certain industries:

• Factory workers: If a factory employee in New York works a shift of six hours or more, they are entitled to a 60-minute meal break
• Non-Factory workers: Any non-factory employee who works a shift of six hours or more is entitled to a 30-minute meal period between 11 a.m. and 2 p.m. (if their shift starts between 1 p.m. and 6 a.m., then they get a 45-minute meal break)
• Special circumstances: A company can apply to the New York Department of Labor for a permit to have shorter meal breaks

There are also specific rules governing rest breaks, which New York law doesn’t require. If your company offers rest breaks, you must be paid for this time. Most companies don’t offer them.

Normally, an employee would not file a formal complaint over missing one or two meal breaks. If an employer has a pattern of denying these breaks, you can file a complaint with either the state or the Occupational Safety and Health Administration (OSHA).

Other Key Wage and Hour Provisions in New York State

While it’s not feasible to explain every employment law in New York, those that focus on worker protection are important to know. If you feel like you’ve suffered from any of these, consider seeking legal advice from a New York wage and hour lawyer.

Final Paycheck Requirements

If you quit or are fired from your job, make sure you receive your final paycheck. Under New York law, you must receive your final paycheck on the next payday immediately following your last day of work. No matter how acrimonious the split from your employer may have been, they are legally required to pay you for the time you worked.

Pay Stub Requirements

According to New York Labor Laws, companies must provide workers with a pay stub on every payday. The pay stub can be electronic, but employers must provide workers with access and the ability to print it out if needed. If an employer fails to provide a worker with their pay stub, they face fines of up to $5,000 per employee. This is the case even if the worker was paid the correct wages.

Reporting Time Pay

If you report to work a shift and your manager or employer sends you home early, they must still pay you. According to the New York Codes, Rules, and Regulations, if your shift is four or more hours, your employer must pay you for at least four hours at your regular rate.

For a scheduled shift of fewer than four hours, your employer must pay you for your full shift. These rules apply to all non-exempt employees, regardless of whether they do any actual work before their manager sends them home, as well as to both part-time and full-time staff.

Split Shift Premiums

New York has laws regarding special pay for when employees work split shifts. If a shift is divided by a substantial gap, employers in New York State must pay their employees a premium.

According to New York State Labor Law, workers are entitled to receive one hour’s worth of extra wages if they work a split shift. The extra hour is paid at the state’s minimum wage rate, not the worker’s usual pay rate.

A person is only entitled to the premium if their entire work shift exceeds 10 hours. If someone goes into work at 7 a.m., is off from 11 a.m. to 12 p.m., and then finishes their shift at 4 p.m., they do not qualify for split-shift pay. Someone who works until 8 p.m. instead of 4 p.m. would qualify, as the spread of the shift exceeds 10 hours.

Expense Reimbursements

For employees who sustain expenses for things like travel, meals, and lodging, New York law requires their employer to reimburse them within 30 days of becoming due. There are basic steps employees must follow to be reimbursed. These include:

• Having advance authorization for the expenses
• Clearly documenting costs, reasons, and how they relate to your job
• Timely submission of an expense report
• Following your company’s policy and sticking to your employer’s budget
• Providing justification for the expenses (link it to a legitimate business need or purpose)

If you follow the above steps and your employer still doesn’t pay your expenses within 30 days, you can file a complaint with the New York State Department of Labor or the New York Office of the Attorney General. Companies that violate these laws face misdemeanor penalties. Consider speaking to an employment law attorney before filing, as this can require delicate negotiations with your employer.

Difference Between Exempt and Non-Exempt Employees

The Fair Labor Standards Act only applies to non-exempt employees. A non-exempt employee is usually paid hourly rather than salary. For example, John Smith earns $18 per hour and works 35 hours per week. Since he is paid by the hour, John is a non-exempt employee.

Joan Smith is paid $52,000 per year and works about 40 hours per week, which can vary. Since Joan is paid a salary rather than an hourly wage, she qualifies as an exempt employee. Exempt employees are not entitled to overtime and are exempt from the FLSA and New York Wage and Hour laws.

There are three tests you must pass to qualify as an exempt employee. They are:

• Salary level test: Exempt employees must receive at least $684 per week (federal guideline) or $1,200 per week (New York State) to qualify as exempt. This comes out to a salary of $35,568 per year (federal) and $62,353 (New York State). If you make less than $62,353 per year, you are a non-exempt employee and covered by the FLSA. While federal law defines an exempt employee as someone who earns at least $684 per week ($35,568 per year), many states define the threshold as much higher. If you live in Suffolk County, Westchester County, Nassau County, or New York City, the number is higher ($1,275 per week and $66,300 per year).
• Salary basis test: If you get a fixed amount in your paycheck every week, then you are likely an exempt employee. In general, employers cannot “dock” an exempt employee’s check, although exceptions exist.
• Job duties test: Most cases involving a question of an employee’s exempt status focus on the job duties test. These duties tend to be more “high-level” and representative of exempt employees. If a person’s primary duties involve the following, they are more than likely an exempt employee:

  • Executive

  • Administrative

  • Professional

  • Computer technology

  • Outside sales

You must pass all three of the above tests to qualify as an exempt employee. If you fail even one of these tests, you will be deemed non-exempt and protected under the FLSA.

When Can an Employer Dock an Exempt Employee’s Pay?

An exempt employee’s salary history often shows the same exact amount in gross pay every pay period. Their net pay may vary, since tax withholdings tend to decrease toward the end of the calendar year.

In general, docking one’s pay is limited to non-exempt employees. There are times when a company can legally “dock” an exempt employee’s check. These situations are limited and include the employee abusing the following:

• Taking a full sick day
• Taking a full personal day
• Disciplinary suspension
• Safety rule violation
• Family and Medical Leave Act
• First or last week of employment

An employer must have a legally sound reason for docking your pay. These are often listed in a company handbook or an employment contract.

Leave Law in New York State

New York’s paid sick leave law requires employers with five or more eligible employees or net income of more than $1 million to provide paid sick leave to employees. Those under those thresholds must allow unpaid sick leave to employees instead.

Vacation and holiday pay are up to an employer, as they’re under no legal obligation to provide either. Most do as part of a package to entice full-time employees to work for them.

Common Types of Wage and Hour Violations

Whether intentional or not, employers are responsible for any violations made against wage and hour laws. Seek legal advice for any wage and hour violation or a situation involving discrimination or sexual harassment in the workplace.

Some of the most common types of wage and hour violations in New York include:

• Minimum wage violations: If your employer is paying you less than the current minimum wage, they may owe you a significant amount in lost wages
• Discrepancies in overtime pay: When you work more than 40 hours in a given work week, you are entitled to overtime pay at the increased rate
• Denial of breaks: If you’re working a specific number of hours, your company must allow you to take paid breaks
• Improper classification of employee: Employers may misclassify you as exempt or an independent contractor so they don’t have to pay you benefits, overtime, or offer health insurance
• Failure to keep accurate records: Companies have an obligation to maintain accurate records of your work hours and wages
• Illegal deductions: Employers must explain any unexpected deductions made from your paycheck
• Off-the-clock work: Companies are required to pay non-exempt employees for all working hours, regardless of whether they fall outside your regular workday
• Child labor law violations: New York law has significant protections in place for minors who work

This is not an exhaustive list. Certain types of employees, such as food service workers and other service employees, are entitled to special breaks and other privileges.

When Is It Worth Pursuing a Wage and Hour Lawsuit?

One-time errors that are quickly addressed and resolved don’t warrant a lawsuit. However, repeated violations may demand legal action. Some of these situations include:

• You have documentation to back up your claim: If you don’t have evidence or a “paper trail” to prove that your employer has violated the New York wage and hour laws, it may not be a good idea to pursue a legal claim. This is especially true if you plan on working at the company going forward.
• Ongoing problem or pattern of behavior: Filing suit for a one-time mistake is not advisable, as mistakes can be made. Repeated mistakes that aren’t fixed may be intentional.
• Potential for substantial recovery: It’s best to pursue legal action when there’s a good chance of recovering damages. Most wage and hour attorneys offer a free consultation and can give a blunt assessment on whether your case is worth pursuing.
• Risk of retaliation: Even if you’re clearly the victim, there’s likely to be ruffled feathers with your employer if you plan to continue working there after filing a lawsuit. There are whistleblower protections an attorney will be aware of that can help.

Just as there are times when it makes sense to pursue a wage and hour claim, there are also times when you should refrain from taking legal action.

Some of these times include the following:

• Low chance of recovering significant damages
• Violation was a one-off and is unlikely to happen again
• Employer was apologetic about the error and made you whole
• High risk of retaliation
• Desire to stay with the company

These are often complex situations. Speaking with a wage and hour attorney can help clarify your position.

Remedies Available in a Wage and Hour Case

If your wage and hour claim is successful, you may be entitled to significant compensation. It depends on the nature, extent, and seriousness of the violation.

Some of the remedies available in a wage and hour lawsuit include:

• Unpaid wages (overtime, hours worked, minimum wage violations, etc.)
• Attorney fees and costs
• Liquidated damages
• Compensatory damages (medical bills for stress or emotional suffering, etc.)
• Punitive damages (if your employer’s behavior is egregious, willful, and intentional)
• Interest on unpaid wages
• Fines and penalties at the hands of state and federal government agencies

Meeting with an attorney will help you decide whether you want to pursue a legal claim.

How To File a Wage and Hours Claim

If you believe your employer has violated the wage and hours laws, you can file a claim with the New York Department of Labor (NYDOL). Your first step should be to gather evidence supporting your claim and determine the type of violation.

Before filing a claim, send a demand letter to your employer, asking them to pay you what you deserve. If you’re unsure of how to word it, hire an attorney to do it for you. It often carries more weight when sent from a law office.

If your employer ignores your demand letter or refuses to make you whole, it may be time to move forward with your complaint. To do this, visit the NYDOL Wage Theft Hub and complete the complaint form. You can also print the form and mail it to the county NYDOL office or call 1-888-4-NYSDOL.

Once the state receives your claim, it will investigate and request records from your employer. Depending on the results of the agency’s investigation, it may issue a Wage and Hours Order, demanding that your employer pay you any missing wages or other compensation.

If your employer refuses to comply with the order, you can file a private lawsuit against them in state court. If you choose to go this route, consider consulting a New York employment law attorney to help with your case. You also have the option of filing a claim with the federal government for a violation of the FLSA.

Contact a New York Employment Attorney To Discuss Your Case

If you’re an employee who’s concerned about pay transparency, talk to a legal professional as soon as possible. An experienced New York wage and hour attorney can examine your claim, provide you with options, and stand with you through the legal process.