As part of the New York State Budget Bill, Governor Kathy Hochul and members of the Assembly and Senate agreed to amend New York Labor Law '198(1-a) to eliminate liquidated damages for first-time pay frequency claims.
Background
New York Labor Law '191 requires that for-profit employers pay "manual workers" "weekly and not later than seven calendar days after the end of the week in which the wages are earned." Under the Labor Law, a "manual worker" is defined as "a mechanic, workingman or laborer."According to the New York State Department of Labor (NYSDOL), individuals who spend more than 25% of working time engaged in "physical labor" fall within the meaning of the term "manual worker," and the term "physical labor" has been interpreted broadly to include countless physical tasks performed by employees.
In instances where manual workers were paid late but in full, the NYSDOL long had interpreted the Labor Law to limit the...