KDVG ALERT
April 6, 2011

ATTORNEYS:
Arthur R. Kaufman
Michael A. Kaufman
Keith J. Gutstein
Andrew L. Richards
Ellen R. Storch

For more information
contact the above
attorneys or visit us at www.kdvglaw.com Avoid Potentially Significant Penalties:
Comply with the New York State Wage Theft Prevention Act (WTPA)

As a reminder, the New York State Wage Theft Prevention Act (“WTPA”) goes into effect on April 9, 2011. The WTPA applies to all New York employers and mandates that certain information be provided to all employees (both exempt and non exempt). The bottom line of WTPA:

It modifies new hire notification requirements (that have been in effect since 2009);

It imposes an annual notification requirement; and

It requires certain information to be included on pay stubs.

For example, before performing any work, newly hired employees must be provided with:

a notice that indicates the employee’s rate of pay;

the overtime rate (if the employee is non exempt);

the basis of pay;

allowances claimed;

the regular payday;

the name of the employer (including any “doing business as” names);

the address of the employer’s main office;

the employer’s mailing address (if different); and

the employer’s telephone number.

The notice must be in English and in the employee’s primary language. Employees must sign the notice to acknowledge receipt and must be given a copy, and employers must maintain the acknowledged notice for six years. Such notices must also be provided at least seven days in advance of any change of the information provided on the previous notice.

The WTPA also requires employers to provide employees with additional information on their pay stubs. The information must include:

the dates of work covered by the payment;

the name of the employee;

the name of the employer;

the address and phone number of the employer;

the rate of pay, the basis of pay, allowances claimed, gross wages, deductions and net wages.

For non exempt employees, the pay stubs must also include the regular hourly rate of pay, the overtime rate of pay, the number of regular hours worked, and the number of overtime hours worked. If an employee is paid by piece rate, the pay stub must also include the applicable piece rate of pay and the number of pieces completed.

The New York State Department of Labor (“NYSDOL”) has posted model notices and several guidance documents to aide employers in complying with the requirements of the WTPA. This information comes at a critical moment, as employers have little time to ensure practices are in compliance with the WTPA’s many requirements before it takes effect. The NYSDOL has indicated that employers are not required to use its forms; however, any form used by employers must contain the necessary elements.

In light of the potentially significant penalties and damages that may be assessed for non-compliance, employers must take immediate action to ensure each requirement of the WTPA is met. For more information on the WTPA, and additional guidance on what actions employers should take to ensure compliance with its requirements, please contact Keith Gutstein, Andrew Richardsor Ellen Storch.
For more information on these matters, contact the attorneys in KDVG’s Employment Law practice or visit us at www.kdvglaw.com.

The materials contained in this Announcement are for informational purposes only and not for the purpose of providing legal advice. For advice about a particular problem or situation, please contact an attorney of your choice.

Kaufman Dolowich Voluck & Gonzo LLP (KDVG) is a national law firm serving the insurance and business communities in a number of practice areas. Our seasoned litigators and legal practitioners place our clients first, think like business people, and provide our clients with viable and innovative solutions that offer them the best resolution possible. Headquartered in Woodbury, New York (Long Island), KDVG serves our global clientele with additional offices in New York, New Jersey, Pennsylvania and California. For more information on KDVG’s practice areas, attorneys, and how we can assist you with your legal matters, http://www.kdvglaw.com.

For additional information regarding the firm, please contact Ellen Page, Director of Marketing at epage@kdvglaw.com or (516) 681-1100, or visit www.kdvglaw.com.

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