Updated January 2010
In a previous article on this site, we advised that, as of October 26, 2009, Labor Law Section 195.1 requires New York employers to notify all new hires in writing of their hourly rate, overtime rate (if applicable) and payday and receive a written acknowledgment of such notification. The New York Department of Labor (NYDOL) took the position that a countersigned offer letter containing the information was insufficient and that employers would be required to utilize the NYDOL’s official forms. The NYDOL has now decided that, while employers may still elect to utilize the NYDOL’s forms, it is not mandatory to do so, and employers may utilize their own forms to satisfy this requirement. Currently, NYDOL forms are only available for non-exempt hourly employees who work at one rate of pay. The NYDOL has indicated that updated forms for other forms of compensation will be available in the near future, but in the meantime, employers will need to modify or cross out all information that does not apply and insert appropriate language.
Employers will be considered in compliance with the new hire notifcation requirements as long as (1) the employer’s form includes the employee’s pay rate, overtime rate (if applicable) and paydates; (2) the form is given to employees before they perform any work; (3) the form is signed by the employee; (4) the original form is maintained by the employer for a minimum of 6 years; and (5) a copy of the signed form is provided to the employee. The NYDOL has confirmed that its preference is that employers use a stand-alone form in order to comply with this requirement, but also has confirmed that if all the applicable information is included in an offer letter, and the offer letter is signed by the employee, retained by the employer and a copy provided to the employee, the employer would be in compliance.
Below are links to the forms and explanatory guidance:
Fact Sheet - Notice of Pay Rate and Payday for New Hires - P705E
Form - Notice & Acknowledgement of Wage Rate and Designated Payday - LS 52
