New York Updates Pay Frequency Law to Reduce Potential Liability for First Time Offenders

Since the 2019 New York Appellate Division’s decision in Vega v. CM & Associates Construction Management, employers across the state have faced a surge of lawsuits from employees alleging they were not paid frequently enough under New York Labor Law §191. That law requires “manual workers”—defined by the Department of Labor as employees who spend more than 25% of their time performing physical labor—to be paid weekly, while others may be paid semi-monthly. These cases often hinge on fact-specific disputes over job duties, leading to costly litigation. Courts are now inundated with cases in which retail sales associates, restaurant waitstaff, health aides and other workers that have historically performed minimal physical work are now claiming to be manual laborers for this purpose.

Although a 2024 appellate decision in Grant v. Global Aircraft Dispatch Inc. held that employees do not have a private right of action under §191, most courts, particularly in Manhattan and federal jurisdictions, continue to follow Vega.

In May 2025, as part of the 2026 State budget signed into law by Governor Hochul, New York enacted a reform that limits damages for first-time violations to no more than 100% of lost interest for any late wage payment, rather than the full liquidated damages previously available. This change is intended to reduce the financial incentive to bring standalone pay frequency lawsuits, though employers with prior violations may still face higher exposure. Pay frequency claims may also continue to be included in broader wage-and-hour disputes.

Employers are encouraged to review their pay practices and assess whether any roles involve enough physical labor to trigger weekly pay requirements. Larger employers may also want to explore obtaining a variance from the Department of Labor, which has already granted exemptions to over 200 companies in the state.

Read more about how employers can ensure compliance with pay frequency laws in our latest Client Alert below.