Update: New York Officially Repeals Annual Pay Notices as Another Minimum Wage Increase Goes Into Effect

December 30, 2014Alerts Labor & Employment Alert

On December 29, 2014, New York Governor Andrew Cuomo signed into law amendments to the Wage Theft Prevention Act (WTPA) that, among other things, eliminate the requirement that all New York employers provide pay notices to all of their New York employees each January. In signing the WTPA amendments, the governor issued a signing statement stating that the amendments will have immediate effect. This means that employers will not have to issue pay notices to their workforce in January 2015.

However, the WTPA and the Hospitality Wage Order still require employers to provide pay notices to employees whenever there is a change to an employee’s rate of pay. On December 31, 2014, as we have reminded employers in prior alerts, the minimum wage in New York will increase as follows:

Employee Category

Minimum Wage Rate

Minimum Overtime Rate

Tip Credit

All Non-Tipped Employees

$8.75

$13.13

N/A

Tipped Food Service Worker

$5.00

$9.38

$3.75

Tipped Non-Food Service Worker

$5.65

$10.03

$3.10

Therefore, employers must provide new pay notices to those employees who will receive a pay increase as a result of the increase in minimum wage. This means a pay notice must be given to:

  • All employees who are currently paid the minimum wage;
  • All employees who are paid less than $8.75 per hour;
  • All tipped, food service employees who currently receive $5.00 per hour and for whom the employer takes a tip credit; and
  • All tipped, non-food service employees who currently receive $5.65 per hour and for whom the employer takes a tip credit

Even though employers must provide pay notices to their tipped employees, as set forth above, the tipped minimum wage is not changing and will remain at $5.00 per hour for food service employees and $5.65 for non-food service employees. However, the tip credit taken for these employees is increasing to $3.75 for food service employees and $3.10 for non-food service employees. As such, the minimum overtime rate for tipped employees will increase to $9.38 for food service workers and $10.03 for non-food service workers. Because of these changes, all tipped employees must also receive the rate of pay notice.

Finally, because the minimum wage is increasing to $8.75 per hour, spread of hours payments for hospitality employees also will increases effective December 31, 2014. This means that, starting on December 31, 2014, if an employee covered by the Hospitality Wage Order has a spread of hours that exceed 10 on any given day, the employee is entitled to an extra payment of $8.75 in addition to the wages that he or she earned that day.

For more information about this alert, please contact Carolyn D. Richmond at 212.878.7983 or [email protected] , Glenn S. Grindlinger at [email protected] or 212.905.2305 or any member of the firm’s Labor & Employment Department.