New York Appellate Court Holds That Manual Workers Do Not Have a Private Right of Action for Pay Frequency Violations

On January 17, 2024, New York’s Appellate Division, Second Department held in Grant v. Global Aircraft Dispatch, Inc. that New York Labor Law §§ 191 and 198 do not provide manual workers a private right of action against their employer for pay frequency violations.

New York Labor Law § 191 requires that employers pay manual workers weekly and not later than seven calendar days after the end of the week in which wages are earned. The court in Grant, however, held that paying manual workers on a biweekly basis for all hours worked is not considered an underpayment that would trigger a private right of action under New York Labor Law § 198.

This decision is contrary to that in Vega v CM & Assoc. Constr. Mgt., in which The First Department held that manual workers do have a private right of action against their employers for failure to provide paychecks on a weekly basis. The inconsistent decisions in Grant and Vega have created a split between and among the courts of the New York Appellate Division. Until there is a ruling on the issue from the New York Court of Appeals, the New York trial courts will be subject to different interpretations of the law depending on their geographic location.

Employers should also note that Governor Kathy Hochul has indicated an interest in reducing employer liability for pay frequency violations by proposing an amendment to New York Labor Law § 198 to exclude the recovery of liquidated damages for a violation of § 191 where “the employee was paid in accordance with the agreed terms of employment, but not less frequently than semi-monthly.” Other proposed bills appear aimed at mitigating employer liability for pay frequency violations as well.

Based on the current state of the law, employers should remain apprised of any new pay frequency developments through both the court system and the legislative process. Employers should continue to review and revise their pay frequency policies and practices to remain in compliance with current law.

Our Labor & Employment team is available to help employers navigate their compliance with New York pay frequency laws and other New York Labor Laws, as well as assist employers in managing employer-employee relations or in defending against wage and hour law claims and all other types of workplace claims.

Read more about the manual workers decision in our Client Alert below.