Introduction
On May 9, 2025, New York State Governor Kathy Hochul signed a bill as part of the 2026 Fiscal Year budget, amending New York Labor Law ("NYLL") Sections 191 and 198. The purpose of the amendment is to limit liquidated damages recoverable for late wage payments to manual workers. The amendment'which took immediate effect and applies retroactively'affirms that employers must continue to pay manual workers on a weekly basis. Going forward, however, employers who are paying manual workers at least semi-monthly are not liable until their second offense.
Notably, the amendment does not resolve a key legal question: whether employees have a private right of action under NYLL ' 191 to directly sue their employer for late wages. The New York State Appellate Courts for the First and Second Judicial Departments have issued conflicting answers to this question, and the issue is now pending review before the New York Court of Appeals.
Background
New York has historically required manual workers to be paid weekly. What constitutes a "manual worker," however, is a matter of debate. While the NYLL defines "manual worker" as "a mechanic, workingman or laborer," the New York State Department of Labor ("NY DOL") has defined "manual workers" as individuals who spend more than twenty-five percent of working time engaged in "physical labor." Courts have interpreted the term "physical labor" to include numerous physical tasks, including those performed by airport chauffeurs, pizzeria workers, and hairdressers. Due to the ongoing debate surrounding the definition of "manual worker," the NY DOL makes determinations on a case-by-case basis, focusing on the work performed by the employee rather than...
