Establishes the wage theft prevention act

Summary of specific provisions

Section 195 of the Labor Law is amended to require that employers provide their employees in English and in the primary language of the employee at the time of hiring and on or before February 1 of each subsequent year a notice including: the rates of pay and its basis, whether paid by the house, shift, day, week, salary, piece, commission, or other allowances if an to be claimed as part of the minimum wage, including tip, meal, or lodging allowances. The Labor commissioner ("commissioner") shall prepare for employers a series of templates in each appropriate language that comply with these requirements. The employer shall obtain from the employee a signed and dated written acknowledgment in English and in the primary language of the employee of receipt of this notice. Additionally, employees must be given a statement of wages and must have payroll records available for not less than six years. These records shall indicate the regular hourly rate of pay, the overtime rate of pay, the number of regular hours worked, and the number of overtime hours worked.

Section 196 of the Labor Law ("powers of commissioner") is amended to read: if any order to comply against an employer remains unsatisfied for a period of ten days after the time to appeal has expired and no appeal is pending, the commissioner may require the employer to provide an accounting of assets of the employer, including but not limited to a list of all bank accounts, accounts receivable, personal property, real property, automobiles, or other vehicles and any other assets in a form and manner as prescribed by the commissioner. An employer shall provide an amended accounting of assets within ten days of any changes.

Section 196-a of the Labor Law is amended to outline how employees can file complaints with the commissioner. The commissioner shall keep the names of employees who are the subject of investigation confidential until such time that disclosure is necessary to resolution of a complaint.

Section 198 of the Labor Law is amended to set out the costs and reme- dies available to employees if the commissioner finds the employer at fault in a claim.

Section 198-a of the Labor Law is amended to set out the criminal penalties that employers who commit wage violations may face.

Section 199-a of the Labor Law is further amended to set out the notification of process by stating that each claimant and his or her authorized representative shall be provided a copy of all communications directed to the employer that include any calculation of wages owed or damages to be assessed with respect to that claimant and be provided an opportunity to review and contest that factual basis of that calculation prior to settlement of the claim or issuance of an order to comply.

Section 201 of the Labor Law is amended to provide for the laws and orders to be posted stating that the copies or abstracts posted by an employer pursuant to this section shall be in English and in all languages that are the primary language of ten percent or more of that employer's workforce at each premises and any other language as the commissioner may require. The commissioner shall make available to employers copies of all such documents in the appropriate languages.

Section 215 of the Labor Law is amended to provide the penalties and civil actions permissible as a result of an employer who penalizes and retaliates against employees because of complaints of employer violations.

Section 218 of the Labor Law is amended to set out violations of certain provisions and civil penalties.

Section 219 of the Labor Law is amended regarding violations of certain wage payment provisions, interest and filing orders of judgment, including the commissioner's authority to provide for inclusion of an automatic fifteen percent additional amount of damages to come due and owing upon expiration of 90 days from an order to comply becoming final.

Section 661 of the Labor Law is amended regarding the records of employers and requiring the maintenance and preservation of records for not less than six years.

Section 662 of the Labor Law is amended concerning penalties for failure to pay minimum wage or overtime compensation, wages, or underpayments.

Section 663 of the Labor Law is amended to set out civil actions on behalf of the employee and commissioner. The statute of limitations shall be also be tolled from the date an employee files a complaint with the commissioner until an order to comply issued by the commissioner becomes final or where the commissioner does not issue

an order, until the date on which the commissioner notifies the complainant that the investigation has concluded.

Justification

Studies indicate that a large number of employees are earning less than minimum wage and others are being paid less than their correct wage. Many employees are also not all receiving the appropriate amount of overtime compensation and many employers are failing to adequately inform their employees of their wages and how they are calculated in a language they can comprehend. The penalties currently in place for employers paying less than minimum wage are minimal and offer little deterrent - this will change dramatically with this legislation. Civil and criminal penalties for violating employee rights would be increased in order to far better protect workers' rights and interests.

Prior legislative history

New legislation.

Fiscal implications

Minimal.

Effective date

This shall take effect on the one hundred and twentieth day after becoming law.