Proposed Amendment to NY Labor Law

In a significant legal development, the New York State Appellate Division, Second Department recently issued a decision in Grant v. Global Aircraft Dispatch, Inc., reshaping the landscape of New York Labor Law concerning wage frequency rights for manual workers.

What You Need to Know

In Grant v. Global Aircraft Dispatch, Inc., the New York State Appellate Division (Second Department) addressed the issue of whether manual workers have a private right of action under the New York Labor Law to pursue violations of the law’s weekly pay frequency requirement. This question arose due to conflicting interpretations between appellate departments, and most recently has been making headlines due its direct impact on employers and employees.

The Decision

The Second Department departed from the First Department’s Vega decision, holding that payment of full wages on a regular biweekly payday does not constitute nonpayment or underpayment under Labor Law § 198(1-a). The court emphasized the legislative intent behind the statute, which focuses on the actual amount of wages paid rather than the frequency of payment. Governor Hochul’s Executive Budget Proposal also aligns with this interpretation, suggesting an amendment to NYLL Section 198 to preclude manual workers from pursuing liquidated damages for technical pay frequency violations.

How This Impacts Your Work

The Grant decision creates a split between the First and Second Departments, leading to potential disparate interpretations of New York Labor Law across different jurisdictions. Until resolved by the Court of Appeals or legislative intervention, employers should remain cautious, as they may still face civil penalties for failing to pay manual workers on a weekly basis.

Stakeholders must closely monitor developments in New York Labor Law, particularly in light of conflicting appellate decisions. The Grant decision underscores the importance of proactive compliance measures for employers and highlights the need for legal counsel to navigate complex regulatory frameworks effectively.

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