Damages are Now Limited for Violation of New York’s Weekly Pay Law
Amendments passed as part of New York’s Fiscal Year 2026 budget process now limit the damages available for violation of New York Labor Law § 191(1)(a).
New York Labor Law § 191(1)(a) requires that manual workers (except for manual workers employed by non-profits) be paid weekly and “not later than seven calendar days after the end of the week in which the wages are earned.” The Labor Law defines “manual worker” as a “mechanic, workingman or laborer.” This definition has been interpreted by the Department of Labor to include those “who spend more than 25 percent of their working time performing physical labor.” N.Y. Dep’t of Labor Opinion Letter, No. RO-09-0066 (May 21, 2009).
In 2019, this section of the Labor Law drew increased attention when the Appellate Division, First Department, held that payment of a manual worker’s wages on a biweekly, rather than a weekly, basis violates Labor Law § 191(1)(a) and supports a private action for liquidated damages, interest, and attorney's fees under Labor Law § 198 even if the employee was otherwise paid accurately for all hours worked. Vega v. CM & Assoc. Constr. Mgt., LLC, 107 N.Y.S.3d 286 (1st Dep’t 2019). The Vega decision led to a slew of cases filed, including numerous class actions, by purported manual workers seeking these damages, which could be significant given the six-year statute of limitations under the Labor Law. Not all courts, however, agreed with the decision in Vega. Last year, the Appellate Division, Second Department, held that individuals did not have a private right of action under New York Labor Law 191(a) where they were paid accurately pursuant to a biweekly pay schedule, emphasizing that a violation of New York Labor Law’s frequency of payment requirement is not synonymous with an “underpayment of wages subject to collection with an additional assessment of liquidated damages.” Grant v. Global Aircraft Dispatch, Inc., 223 A.D.3d 712, 716 (2d Dep’t 2024). The split has yet to be addressed by the New York Court of Appeals, the state’s highest court.
The recent amendments to Labor Law § 198 provide some relief for employers on the issue of damages, though it does not address the question of whether employees can bring a private right of action. The amendments state that liquidated damages are not immediately available if manual workers are paid on a regular payday, at least semi-monthly. Instead, employers who fail to pay manual workers weekly are subject to the following damages:
For an employer’s first violation of the weekly pay requirement: no more than 100% of the lost interest found to be due for the delayed payment of wages; and
For repeat violators whose conduct occurs after the May 9, 2025 effective date of the amendment: liquidated damages equal to 100% of the late-paid wages.
An employer falls into the latter category when it has been subject to “one or more previous findings and orders for violations of [Labor Law § 191(1)(a)].” “Order” is defined as “a single final order or determination made by the commissioner or a court of competent jurisdiction, regardless of the number of employees or the time period that was subject to such order.” Accordingly, true liquidated damages are only available for repeated violations of Labor Law § 191(1)(a). The amendment goes into effect immediately and expressly applies to pending actions.
The Firm will be closely monitoring these developments, additional guidance, and any associated legal challenges. In the interim, employers of manual workers or those who have questions as to whether they are employing manual workers should continue to consult with counsel regarding wage and hour issues and particularly pay frequency. Employers with questions or related concerns should contact Sabrina Jorge at sjorge@fglawllc.com or any other attorney at the Firm.
DISCLAIMER: This alert is provided to clients and friends of the firm for informational purposes only and the distribution of this alert is not intended to, and does not, establish an attorney-client relationship. This alert also does not provide or offer legal advice or opinions on any specific factual situations or matters. This communication may be considered Attorney Advertising. Prior results do not guarantee a similar outcome.