On May 10, 2025, New York State enacted significant amendments to Labor Law §191, which governs the timing of wage payments to manual workers. The amendment reduces the penalties employers face for failing to pay manual workers on a weekly basis.
Under the prior law, manual workers were required to be paid weekly. In 2019, the Appellate Division’s decision in Vega v. CM & Assoc. Constr. Mgt. LLC held that workers had a private right of action under §191 and could recover liquidated damages for late wage payments. This ruling triggered a surge in litigation.
Courts allowed employees to recover liquidated damages equal to 100% of late-paid wages—even when those wages were eventually paid. As a result, employees paid every other week could recover an additional week’s pay for every pay period in which wages were late. This created substantial financial exposure for employers and fueled a wave of lawsuits.
The recent amendment introduces two key changes:
- No Liquidated Damages for First-Time Violations: Employees will no longer be entitled to liquidated damages for an employer’s first violation of the weekly pay requirement. This recognizes that isolated, inadvertent errors should not carry severe financial penalties.
- Interest, Not Liquidated Damages, for Subsequent Violations: For repeated violations, employers will owe interest on late-paid wages instead of being liable for liquidated damages equal to 100% of those wages. This ensures that employees are compensated for delays while avoiding disproportionate penalties.
Importantly, the amendment applies retroactively and will impact pending lawsuits filed under the prior interpretation of §191.
While opinions on this change vary, it represents a legislative effort to balance meaningful worker protections with fair and proportional remedies for employers.
If you have questions about how this amendment may affect your business or your rights as an employee, contact Granovsky & Sundaresh PLLC today. Our experienced employment attorneys are here to help.