NYSDOL Clarifies New “Notice of Pay” Requirements

February 1, 2010

In the November 2009 edition of “Real Workplace Issues,” we highlighted New York State’s new requirement that NY employers provide newly-hired employees with written notice of their rate of pay, rate of overtime pay (if applicable) and regular payday, and obtain written acknowledgment of each newly-hired employee’s receipt of such notice.

In an effort to provide NY employers with additional guidance on the requirements of NY Labor Law Section 195.1, the New York State Department of Labor has issued guidelines, instructions and a variety of sample forms.

The “Guidelines for Written Notice of Rates of Pay and Regular Payday” reveals several important facets of the new law, including the following requirements:

  • The written notice must be given to the employee at the time of hiring, before any work is performed.
  • Contrary to the NYSDOL’s original position, employers are not currently required to use the NYSDOL’s forms so long as the forms contain the required information.
  • The notice to exempt employees must state the specific exemption (i.e., executive, administrative, professional).
  • The employer must keep a copy of the signed notice for six (6) years.

The NYSDOL has also prepared the following model forms based upon the method in which an employee is compensated:

  • Hourly Rate Plus Overtime
  • Mixed Hourly Rates
  • Weekly Rate or Salary for a Fixed Number of Hours (40 or Fewer in a Week)
  • Salary for Varying Hours, Day Rate, Piece Rate, Flat Rate, or Other Non-Hourly Basis
  • Exempt Employees.

The Guidelines, model forms and accompanying instructions can all be found under the “Forms-Worker Protection-Employment Laws/Labor Standards” section of the NYSDOL’s website.

New York “Notice of Pay” Law Also Affects Commissioned Salesperson Agreements

Back in October of 2007, New York Labor Law Section 191(c) was amended to require that employers place the terms of employment for commissioned salespersons in writing. For a detailed description of the requirements of NYLL 191(c), see the October 2007 edition of “Real Workplace Issues.”

According to the previously mentioned “Guidelines for Written Notice of Rates of Pay and Regular Payday,” written salesperson agreements that comply with NYLL 191(c) will also satisfy the new “notice of pay” requirements under NYLL 195.1 if the following conditions are met:

  • It tells the salesperson if he or she is eligible for overtime pay, and if not, specifies the exemption under which the salesperson falls
  • It notifies the eligible salesperson of the method of calculating his or her overtime rate of pay (this must include commissions as part of the regular rate)
  • It notifies the salesperson of his or her designated pay day or method for determining when the salesperson will be paid
  • It is acknowledged in writing as received by the employee
  • It is kept on file for six (6) years.

Send us a message

You can contact us via email or telephone, or by using the form below.

  • This field is for validation purposes and should be left unchanged.

Search Articles

Halpern & Scrom Law Newsletter

Please enter your email address below to sign up for our topical e-newsletter:

  • This field is for validation purposes and should be left unchanged.