The Wage Theft Prevention Act (WTPA) requires New York employers to provide detailed wage notices and wage statements to employees. Failure to comply can result in steep financial penalties—up to $10,000 per employee, plus double damages and attorney’s fees.
This article breaks down the legal requirements, the risks of noncompliance, and best practices for employers to stay compliant.
Understanding WTPA Wage Notices & Statements
What Is a Wage Notice?
Employers must provide a written wage notice to employees at the time of hiring, including:
Rate of pay (hourly, salary, piece rate, etc.)
Overtime rate of pay, if applicable
How wages will be paid (cash, check, direct deposit, etc.)
Official business name and DBA name
Employer’s address and contact information
Applicable allowances (e.g., meal credits, lodging, tips)
📌 The notice must be in English and the employee’s primary language if translated versions are available from the NY Department of Labor.
📌 LS 54 through LS 59 are official New York State Department of Labor (NYDOL) wage notice forms that employers can use to meet WTPA requirements. Each form corresponds to a different type of employment arrangement:
Form | Purpose |
|---|---|
LS 54 | Hourly Rate Employees Wage Notice |
LS 55 | Multiple Hourly Rate Employees Wage Notice |
LS 56 | Salaried Employees Wage Notice |
LS 57 | Prevailing Rate and Other Jobs with Supplemental Rates |
LS 58 | Employees Paid by Weekly Rate or Commission |
LS 59 | Day Rate, Piece Rate, and Other Non-Hourly Pay Methods |
📌 Employers must retain signed copies of these forms for six years as proof of compliance.
📌 Employers must keep signed copies for six years as proof of compliance.
📌 Practice Tip: If employees are filling out wage notices electronically, employers must have a system that verifies the signature or electronic acknowledgment is tracked back to the employee. Additionally, employees should have the ability to print or download their signed notices for their own records to ensure transparency and compliance.
What Is a Wage Statement (Pay Stub)?
Every pay period, employees must receive a detailed wage statement (pay stub) that includes:
Employee’s name
Employer’s name and contact information
Pay period covered
Regular and overtime hours worked
Rate of pay (both regular and overtime rates)
Gross wages and deductions
Allowances claimed (e.g., meal credits, lodging, tips)
🔗 NYDOL Pay Stub Requirements
When WTPA Violations Go Bad
Scenario 1: No Wage Notices at Hiring
A small restaurant hires employees but never provides wage notices. A former employee files a complaint, triggering a DOL investigation. However, this case expands into a class action lawsuit involving 1,000 employees. The employer must:
Issue corrected notices retroactively.
Pay $50 per day per employee, up to $5,000 each.
Cover attorney’s fees and penalties.
Example Calculation:
Missing notices for 1,000 employees.
WTPA penalty per employee: $5,000.
Total WTPA penalties: $5,000 × 1,000 = $5,000,000.
Liquidated damages (doubling penalties): $5,000,000.
✅ Final total cost: $10,000,000, plus any additional unpaid wage damages.
Scenario 2: Incomplete Wage Statements
A retail store fails to include the employer’s phone number on pay stubs, a strict WTPA violation. Employees file a lawsuit, leading to $250 per missing pay period penalty.
Example Calculation:
200 employees affected.
Each employee receives biweekly paychecks (26 pay periods per year).
Penalty per pay period: $250.
Total penalty per employee per year: $250 × 25 = $5,000.
Total over 2 years: $5,000 × 2 = $10,000 per employee.
Final Employer Cost for 200 Employees: $10,000 × 200 = $2,000,000.
✅ Final total cost: $2,000,000, plus unpaid wages and attorney’s fees.
Scenario 3: Misclassifying Employees as Independent Contractors
A company pays workers in cash and classifies them as independent contractors (ICs). A DOL investigation is triggered after one worker files for unemployment. The investigation finds that 10 workers should have been classified as employees, leading to significant penalties.
Example Calculation:
5 violations per week per employee.
Each violation = $2,000.
Total per employee: 5 × $2,000 = $10,000.
Total over 2 years: $10,000 × 2 = $20,000 per employee.
Final Employer Cost for 10 Employees: $20,000 × 10 = $200,000.
✅ Final total cost: $200,000, plus back taxes, interest, and additional penalties under the Freelance Isn’t Free Act (New York or New York City).
Penalties for Noncompliance
Employers who violate the WTPA face severe financial consequences:
$50 per day, per employee, for missing wage notices (up to $5,000 per employee)
$250 per day, per employee, for missing wage statements (up to $5,000 per employee)
Double damages for unpaid wages and violations
Attorney’s fees (plaintiffs' legal costs are covered by the employer)
Action Steps: How Employers Can Stay Compliant
✅ Provide Proper Wage Notices: Ensure every new hire signs and receives a WTPA-compliant wage notice.
✅ Audit Payroll Practices: Regularly review pay stubs and deductions to confirm compliance.
✅ Retain Signed Notices: Keep signed wage notices for six years as proof of compliance.
✅ Use Payroll Software: Consider payroll solutions that automate WTPA-compliant pay stubs and wage notices.
✅ Train HR & Management: Educate managers and HR staff on wage laws and recordkeeping requirements.
📥 Downloadable Takeaway: WTPA Compliance Checklist
[Click here to download your free WTPA Compliance Checklist] (Insert Link)
Final Thoughts: Keep Fighting the Good Fight
At Jacobs & Associates, we believe that businesses can be both good and generous employers while also following the law and protecting their business interests. Ensuring that employees are paid fairly and transparently isn't just about avoiding penalties—it's about building a workplace that values compliance, fairness, and proactive legal protection.
By maintaining clear policies, proper documentation, and an understanding of wage notice laws, businesses can prevent costly lawsuits, government audits, and reputational harm before they happen. These aren't just check-the-box requirements—they’re essential to creating a strong, legally sound business.
If you need help navigating wage notice and statement compliance, reach out for expert guidance.
Fighting the Good Fight.
