Understanding How Often Employees Must Be Paid to Avoid Wage Violations
Employers in New York must follow strict pay frequency laws, or they risk significant financial penalties due to liquidated damages. The problem isn’t just missing a paycheck—it’s that late payments trigger automatic financial penalties under wage laws. These penalties can double the owed wages, add substantial WTPA fines, and leave businesses facing attorney’s fees and class-action lawsuits.
📌 Example: An employer is required to pay a manual worker weekly but instead pays every other week because their payroll company suggested biweekly payments. The employee earns $1,000 per week and is ultimately paid in full but receives their Week 1 and Week 3 paychecks late. The result:
Owed liquidated damages: $2,000 (since late wages must be doubled)
WTPA penalties: Up to $10,000 per employee
Attorney’s fees and potential lawsuit costs
✅ Final cost: Much higher than simply paying on time.
📌 Real-World Implications: Many employers assume that paying employees eventually solves the issue. However, under NY wage laws, even if employees receive the full amount later, the fact that the wages were late can trigger automatic financial penalties. For businesses operating on thin margins, these penalties can be financially devastating.
New York Pay Frequency Laws: Who Gets Paid & When?
Pay Frequency Requirements by Worker Classification
Under New York Labor Law, the required pay frequency depends on job classification:
Manual Workers: Must be paid weekly and no later than seven days after the workweek ends. Hospitality workers are presumed to be manual workers and must be paid weekly unless the employer has an approved waiver.
Clerical & Other Non-Manual Workers: Can be paid semi-monthly or biweekly.
Commissioned Salespeople: Must be paid at least once per month.
Executives & Exempt Employees: No specific frequency requirement but must be paid at least once per month.
📌 Manual Worker Rule Exception: Employers with 1,000+ employees in New York may apply for a waiver to pay manual workers biweekly instead of weekly.
📌 Practice Tip: Employers should clearly define pay frequency in employee handbooks and offer written wage notices to avoid disputes. The risk of assuming the wrong pay schedule is too high to leave it to chance. Employers should also retain a copy of LS 54 and ensure the section related to pay frequency is properly completed and provided to employees.
📌 Common Pitfall: Employers who fail to properly document pay frequency agreements may struggle to defend against claims of wage theft or delayed payments.
Common Employer Mistakes & Costly Penalties
Scenario 1: Paying Manual Workers Biweekly Without a Waiver
A construction company pays manual laborers every two weeks without a DOL-approved waiver. A wage complaint leads to a DOL investigation, which reveals that the company has been underpaying employees without realizing it.
Calculation Item | Amount |
|---|---|
Employees affected | 75 |
Missed weekly payments per employee | 52 weeks × 2 years = 104 |
Late wage amount per week | $1,000 |
Total late wages per employee | $1,000 × 52 × 2 = $104,000 |
Liquidated damages (double the amount) | $104,000 per employee |
Total WTPA penalties per employee | $10,000 (cap) |
Total cost per employee | $218,000 |
Total cost for 75 employees | $16,350,000 plus attorney’s fees & potential additional damages |
📌 Practice Tip: Employers should confirm if workers are classified as manual laborers and apply for a waiver if paying biweekly. The cost of not knowing is far greater than taking a few minutes to confirm.
Scenario 2: Paying Commissioned Salespeople Infrequently
A retail business pays commissioned salespeople only once every two months, violating NY’s minimum monthly pay rule. Because wages were late, the employer now faces liquidated damages equal to the late wages, additional WTPA penalties, and potential freelancer penalties under FIFA.
Calculation Item | Amount |
|---|---|
Employees affected | 50 |
Missed payments per year per employee | 12 |
Late wage amount per month per employee | $3,500 |
Total late wages per employee | $3,500 × 6 missed payments = $21,000 |
Liquidated damages (double the unpaid amount) | $21,000 per employee |
Total WTPA penalties per employee | $500 per missed payment × 12 = $6,000 (capped at $10,000) |
Total cost per employee | $52,000 |
Total cost for 50 employees | $2,600,000 plus attorney’s fees & potential additional damages under FIFA |
📌 Practice Tip: Employers should ensure commission payments are issued at least monthly to avoid compliance risks. Even a small mistake in timing can turn into a massive legal issue. This calculation does not include additional penalties under New York State Freelance Isn’t Free Act (FIFA) or NYC’s Freelancer Law, which can impose additional damages for late or missed payments. Employers working with commissioned or freelance-based employees should ensure timely payments to avoid accumulating liability under multiple laws. Additionally, businesses that frequently use independent contractors should verify whether those workers qualify for protections under FIFA, which mandates written contracts, timely payments, and additional damages for violations.
📌 Additional Risk Factor: Employers who repeatedly delay payments for freelance or commissioned workers may also be blacklisted from government contracts or legal protections in labor disputes.
Final Thoughts: Keep Fighting the Good Fight
At Jacobs & Associates, we believe that getting paid on time is a fundamental worker right—and staying compliant with pay frequency laws is a fundamental employer responsibility. Employers who follow NY pay frequency rules avoid wage theft claims, lawsuits, and unnecessary legal risks.
By implementing clear payroll policies, routine audits, and compliance measures, businesses can prevent wage disputes and avoid financial liabilities.
If you need guidance on pay frequency laws, payroll compliance, or defense against a DOL audit, reach out for expert legal support.
Keep Fighting the Good Fight.
