Under New York Labor Law Section 195(1), which became effective October 26, 2009, all employers must give written notice of pay rates and pay dates to new hires. The notice also must include the employee’s overtime rate, if s/he qualifies for overtime. Employers must obtain a written acknowledgment that the notice has been received.
For commissioned salespersons the notice must disclose whether the employee is eligible for overtime and the method for calculating overtime pay. This must include commissions within the regular rate. If overtime will not be paid, the notice must specify the exemption under which the salesperson falls. The Department requires that the notice be signed by both the employer and the salesperson.
The notice must be given before the new hire does any work. The employer must keep the required notices on file for six years.
No particular form is required. Employers can use sample forms proposed by the Department or create a compliant form. The Department’s sample forms are for hourly and exempt employees, including employees paid a weekly rate for a fixed number of hours, and those paid a salary for varying hours, a day rate, a piece rate, a flat rate or another non-hourly rate.
Offer letters and similar communications to prospective hires should be reviewed for compliance with the new law. At the same time, employers should audit their exempt/non-exempt classifications and compensation policies for compliance with the applicable exempt status "salary" and "duties" tests.
For advice and guidance on the new law, please contact Randolph C. Oppenheimer by e-mail, roppenheimer@damonmorey.com, or call 716.858.3780.
© 2010 Damon Morey LLP, Randolph C. Oppenheimer, Esq.
|
