Wednesday, August 5, 2009
New Notice Requirements for New Hires in New York Regarding Overtime Rate
On July 28, 2009, the Governor of New York signed a law that requires New York employers to give written notice of the rate of pay, the hourly overtime rate of pay, and the regular payday to employees upon hiring. The law goes into effect 90 days from the date it was signed, and only applies to employees hired after the law goes into effect.This law does not does not apply to public employees.
These changes mean that New York employers are now required to provide written notification identifying the employee's "regular rate of pay"(not simply hourly rate), as well as provide the actual overtime rate if that employee is FLSA non-exempt (required to receive overtime). Employers will be required to not only give employees notice in writing, but require the employers to obtain written acknowledgment from each employee of receipt of the notice.
The difference between hourly rate of pay (or the employee's salary reduced to an hourly rate - most salaried employees are entitled to overtime compensation) and regular rate of pay, as well as overtime rate, is important.For example, if an employee receives premiums (such as night shift differential, nondiscretionary bonuses), in addition to his or her hourly rate of pay or salary, those must be included in the overtime rate.Thus, this should help employees determine if they are being shortchanged by determining whether the employer is simply paying 1.5 times their hourly rate rather than some higher amount which is required if the employee receives other premium payments.
This will help ensure that employees easily understand a critical feature of the employment relationship with their employers and will help prevent confusion between an employer and employee.
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