What Employers Need to Know
Do you own a company or run a business with employees who spend more than a quarter of their working hours engaged in physical labor? Those workers will likely be categorized as “manual workers” for purposes of New York labor laws. A recent amendment to New York labor laws, included in the 2025 New York state budget bill, addresses a manual worker’s rights to damages when an employer fails to pay wages in a timely manner as required by New York law. Governor Kathy Hochul signed the legislation in May, 2025.
Why Did the Legislature Amend the Law?
Before the change was enacted, New York law was unclear on whether or not manual workers had a right to privately seek damages for late payment of compensation earned:
- A 2019 Appellate court opinion found that manual workers could file a private lawsuit to recover
“liquidated” damages for all instances of late payment - In 2024, another Appellate court ruled that such workers had no right to file a private lawsuit
What Does the Amendment Address?
The inclusion in the budget bill amends New York Labor Law § 198(1-a), adding language that reduces the potential damage recovery for late wage payments for manual workers to lost interest on any delayed payments. Before the amendment, a manual worker had the right to seek statutory damages equal to 100% of the late wage payment. The change, however, only applies to first-time violations of the late-pay requirements. Employers who repeatedly violate the law will be liable for damages equal to 100% of all wages not paid in a timely manner.
Let Stephen Hans & Associates Protect Your Rights as an Employer in New York
At Stephen Hans & Associates, we have successfully advised and represented many New York City employers many years, helping them meet employment law requirements and protecting their rights in employment litigation. Susan Lacerte, executive director of the Queens Botanical Garden has lauded us for our “dedication, knowledge and experience” and for helping the Botanical Gardens “successfully resolve difficult legal issues with [our] talent, negotiating skills, personal care and attention.”
Our experienced attorneys are glad to answer your questions and provide legal advice. Our offices are conveniently located in Long Island City with easy access from Manhattan.