On July 28, 2009, the Governor of New York signed into law an Act that requires employers to give written notice of the rate of pay, the hourly overtime rate of pay, and the regular payday to employees upon hiring. The new law, which becomes effective October 26, 2009, applies to employees hired on or after that date. It amends New York Labor Law § 195, which addresses employer notice and recordkeeping requirements.
New Requirements
As now amended, Labor Law § 195(1) requires employers to notify their employees at the time of hiring, in writing, of the rate of pay and of the regular payday designated by the employer. Previously, such notice was not required to be in writing. Importantly, if employees are non-exempt and eligible for overtime compensation, the notice must also include the regularly hourly rate and overtime rate of pay. Finally, employers must obtain a written acknowledgement from each employee of receipt of such notice.
What It Means For Employers
The purpose of these new notice requirements is to ensure that employees understand their overtime rate of pay, particularly where the employees are paid by salary on a weekly basis, making it difficult for them to discern what the overtime rate of pay should be. As always, employers should ensure that employees are properly classified for overtime purposes, are being paid overtime compensation when appropriate, and that all hours worked are being accurately tracked.
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