New York Court Ruling Holds No Private Right of Action for Pay Frequency Claims
Two recent events may mark the end of the "frequency-of-pay" litigation that has hit New York employers in recent years. It is important to look at the background surrounding the uptick in pay frequency claims, the Second Department's decision and Governor Hochul's Executive Budget Proposal, as they could have major implications for employees and employers in the years to come.
February 23, 2024 at 10:00 AM
6 minute read
Labor Law
Two recent events may mark the end of the "frequency-of-pay" litigation that has hit New York employers in recent years.
First, in a massive victory for New York employers, the Appellate Division, Second Department, held on Jan. 18, 2024, that there is no private right of action for violations of New York Labor Laws § 191, which requires "manual workers" to be paid at least weekly. That decision contradicts a 2019 First Department decision that recognized a private right of action for pay frequency claims under Section 191, sparking a wave of "manual worker" pay frequency lawsuits.
Second, as part of her annual Executive Budget Proposal, Governor Kathy Hochul announced on Jan. 16, 2024, a proposal to amend New York Labor Laws §198 to state that liquidated damages under Section 191 cannot be recovered "where the employee was paid in accordance with the agreed terms of employment, but not less frequently than semi-monthly." This would in essence codify the Second Department's decision, further doing away with these pay frequency claims across the remainder of the state.
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