Prevailing Wage Updates Construction Employers Need To Know
New York’s Wage Theft Prevention Act (WTPA)
If your company performs “prevailing wage” work, you now have additional obligations under New York’s Wage Theft Prevention Act (WTPA), which was amended by Governor Cuomo’s signing of the 2020-2021 state budget.
Wage Notice
Employers must give written notice of pay information (including pay rates, basis of pay, allowances claimed, frequency/method of pay and designated pay day) to each employee on a “Wage Notice,” and to include specific information on each wage statement or pay stub.
The notice must be given upon hiring and when there is a change in status, such as a change in pay rate or if an employee becomes exempt or is no longer exempt from the overtime law requirements.
The failure to provide a timely and accurate notice brings penalties of up to $5,000 per employee.
Wage Statement
Employers must provide a "Wage Statement" with each paycheck. The pay stub should show all withholdings and deductions. A Wage Statement violation brings a $5,000 penalty per employee.
The Wage Statement must now include information regarding benefits provided to employees that are claimed to satisfy any part of the supplemental portion of the prevailing wage law.
Specifically, where prevailing wage supplements are claimed, the Wage Notice must identify, for each type of supplement claimed:
- The hourly rate claimed.
- The type of supplement, including when applicable, but not limited to, pension or healthcare.
- The names and addresses of the person or entity providing such supplement
- The agreement, if any, requiring or providing for such supplement, together with information on how copies of such agreements or summaries thereof may be obtained.
Wage Statements should now detail the type and hourly rate of each prevailing wage supplement claimed. This should appear as a separate line item on a paystub, ensuring that one can easily see that wage supplements have, in fact, been paid and that the correct rate has been applied.
Employers MUST NOW update and issue new Wage Notices to all employees as well as update payroll practices to incorporate accurate and individualized supplemental benefit information on each employee’s pay stubs.
Resources
- Click here for a link to the notice.