Frequency of Pay Under New York Law
Frequency of pay refers to whether you pay your employees weekly, bi-weekly or monthly. New York Labor Law determines how frequently employees in different work classifications must receive pay. If you do not abide by the law, your employee has the legal right to sue you for damages.
A recent case involved an employer who failed to consistently pay an employee. According to the New York Law Journal, the Appellate Division affirmed the employee’s right to take legal action against the employer. If there were a number of untimely paid wages, the case could result in significant liability for the employer.
What Frequency of Pay Guidelines Must NY Employers Follow?
Based on NYLL §191, employers must pay employees in different work classifications as follows:
- Manual workers must receive pay weekly. They cannot receive pay later than seven calendar days after the end of the week the worker earned the wages. If you own a non-profit organization, payment would be according to employment agreement terms, but no less frequently than semi-monthly.
- Salespersons receive commissions based on contract agreements. However, employers must pay them at least once a month and no later than the last day of the month after the month when the wages were earned. Frequency of payment differs when sales commissions are substantial or if additional compensation such as extra or incentive earnings is owed. Under these circumstances, salespersons must receive pay less frequently than once a month.
- Clerks or other workers must receive pay based on their employment agreement. However, they also must not receive pay less frequently than semi-monthly.
- Executives, administrators and professionals, who earn in excess of $900 are not covered by Section 191.
If you have employment related questions, our attorneys at Stephen Hans & Associates are glad to discuss your concerns. We have extensive experience representing employers in employment and labor law issues.