Note: This article is about the notice of pay rate requirement in the WTPA. The WTPA includes other provisions as well, such as payroll records and pay rate requirements, which employers should also review.
What is the Wage Theft Prevention Act?
The Wage Theft Prevention Act (WTPA) requires employers to give written notice of wage rates to each new hire. The notice must be given in English and in the employee’s primary language (if the New York State Department of Labor (NYDOL) offers a translation). Employers must have each employee sign and date the completed notice. Employers must provide a copy to each employee.
When do employers need to provide this notice to employees?
The notice must be provided at the time of hiring and within 7 days of a change if the change is not listed on the employee’s pay stub for the following pay period. The employer also must notify an employee in writing before they reduce the employee’s wage rate. Employers in the hospitality industry must give notice every time a wage rate changes.
What are the penalties for not complying?
Non-compliance with providing the notice can result in fines. If proper notice is not given within the first 10 days of a new hire, employers can be assessed damages by the NYDOL. These fines are $50.00 per day per employee, unless the employer paid all wages required by law. The maximum amount an individual employee can recover in a civil lawsuit is $5,000.00.
What information must be included in the notice?
- Rate or rates of pay, including overtime rate of pay (if it applies)
- How the employee is paid: by the hour, shift, day, week, commission, etc.
- Regular payday
- Official name of the employer and any other names used for business (DBA)
- Address and phone number of the employer's main office or principal location
- Allowances taken as part of the minimum wage (tips, meal and lodging deductions)
What are the steps to get this notice signed and filed in Justworks?
- Add your new employee
- Determine which WTPA form you should use for your new employee; guidance on which form to use can be found here
- Download the appropriate WTPA document from your company-wide documents
- Fill in the required information
- Send to NY employee for signature
- Upload completed form to the employee’s personal document center. Given the sensitive nature of this information, please be sure to only upload to document center and share with the specific employee only.
What if I don't see the form I need?
The forms are included in your company-wide document center. For any other forms not in your document center, including those in different languages, please download them directly from the DOL site here. Once complete, you can upload the correct form to the employee's personal document center.
How long does the form need to be stored?
Signed documents should remain in the employee’s personal doc center for 6 years from start date.
Where can I find more information?
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.