Home > About BNE > Press Room > 2009 Archive > December > New Mandatory New-Hire Procedures Regarding Rates of Pay

In New York State, Newly Mandated New-Hire Procedures Regarding Rates of Pay

Joseph L. Braccio, Esq. and John M. Godwin, Esq.

The New York Legislature recently amended the New York labor law in a way that places additional obligations on employers when hiring employees.  Under prior law, at the time of hire, an employer was required only to notify its employees of their rate of pay and regular payday.  There was no requirement that this notice be in writing, that the notice contain the employee’s overtime rate, or that the employee acknowledge receipt of such notice.

But as of October 26, 2009, employers are required to notify all new employees in writing of their rate of pay and regular payday at the time of hire.  In addition, if they are eligible for overtime under applicable law, this written notice must also inform new employees of their overtime rate.

The new law also requires employers to obtain a written acknowledgement from all new employees confirming that they have received written notice of their regular rate of pay, regular payday, and, if applicable, overtime rate.  The Commissioner of Labor has promulgated a model notice and acknowledgement form that employers may use for this purpose.  The form is available on the Department of Labor’s website.

The legislative history of this law makes clear that its primary purpose is to assist employees and the Commissioner in computing the overtime rate to which employees are entitled.  Thus, employers should expect that the Commissioner will seek to hold them responsible for paying employees in accordance with the notice given to employees, including, if applicable, overtime.

The bottom line for employers: This amendment to the labor law places three additional requirements on employers when they hire new employees: (1) employers must notify employees of their overtime rate, if applicable, (2) the notice of regular and overtime rates must be provided to employees in writing, and (3) employers must obtain a written acknowledgement from each new hire confirming that he or she received the required written notice.  Employers should ensure that they are in compliance with these new requirements by updating their offer letters to include the required written notice and acknowledgement or by utilizing the Department of Labor’s model notice and acknowledgement form.

For more information, Joseph L. Braccio can be reached at 716.848.1436 or JBraccio@hodgsonruss.com and John M. Godwin can be reached at 716.848.1357 or JGodwin@hodgsonruss.com.