One wage and hour requirement sometimes overlooked by, or unknown to, New York State employers is pay frequency—i.e., how often employers must pay wages to their employees. For employers with “manual workers,” as defined under the New York Labor Law, the answer is weekly. Historically, and increasingly, the failure to pay manual workers on a weekly basis has carried a substantial risk of litigation (and costs).
New York defines “manual worker”
Who qualifies as a “manual worker” isn’t always straightforward. The New York State Department of Labor (DOL) has interpreted the definition of “manual worker” to include “employees who spend more than 25% of their working time performing physical labor.” In addition to familiar examples like carpenters, mechanics, laborers, and janitorial workers, the DOL and courts have interpreted “physical labor” broadly to encompass a wide range of activities in other industries, including food and beverage (e.g., cooks, waitstaff), retail (e.g., stocking), home healthcare (e.g., home care aides), transportation (e.g., airport chauffeurs, bus drivers), and more.
Manual worker pay frequency
With few exceptions, employees who spend more than 25% of their working time performing physical labor must be paid on a weekly basis. Failure to pay weekly wages carries steep consequences—even if the employee is otherwise paid on a regular basis (e.g., bi-weekly). Particularly in recent years, manual worker pay frequency claims have become an increasingly popular source of class action litigation. Until now, some courts have assessed “liquidated damages” for violations—equal to one week’s pay for each workweek that wages were delayed. With a six-year statute of limitations, the potential costs to employers resulting from such claims have been enormous.
New York offers relief for first time pay frequency violations
Recognizing the financial harm that these lawsuits impose on employers (who otherwise pay their employees all wages due), on May 9, 2025, Governor Hochul signed an amendment to the New York Labor Law capping penalties for first-time violations at a maximum of 100% of the lost interest incurred because of any delayed payment of wages.[1] After the first violation, employers face liquidated damages equal to 100% of the total amount of wages found to be due (i.e., one week’s pay for each workweek that wages are delayed). This amendment took effect immediately and affects both pending and future claims alike.
How to comply with pay frequency requirements
Despite these reduced penalties for first-time violations, employers still face potentially material penalties associated with misclassification of “manual workers,” especially if the employer has faced a previous pay frequency claim through litigation or a DOL audit. Employers should consult with counsel to evaluate their pay practices for compliance with the pay frequency requirements and to mitigate the potential risks (albeit reduced by the recent amendment) of costly litigation.
- NY Labor Law §198(1-a).
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