Workforce Bulletin

In Guthrie v. Rainbow Fencing Inc., 113 F.4^th 300 (2d Cir. 2024), the Second Circuit weighed in on a brewing dispute among New York district courts as to whether (and how) a plaintiff’s allegations may establish Article III standing to pursue wage notice or wage statement claims under New York’s Wage Theft Prevention Act (“WTPA”) in federal court. 

Basic Requirements of the WTPA

The WTPA requires covered businesses to provide employees with both: (1) a notice, at the time of hiring, outlining their rate of pay, allowances, certain healthcare benefits, among other things; and (2) wage statements, each time wages are paid, describing the calculation of regular and overtime pay, along with other related information regarding pay deductions or allowances.

Even minor compliance errors with these statutory requirements can expose businesses to liability.  Recoverable damages for an individual plaintiff’s wage notice and wage statement claims are capped at a combined total of $10,000; however, when asserted on behalf of a large putative class, WTPA damages can potentially eclipse any claims for alleged underpayments, which will create significant potential exposure for businesses.

The nationwide growth of the “gig economy” has provoked the enactment of laws aimed at providing economic protection to freelance workers. In May 2023, the Columbus  City Council joined this national trend by amending the City’s “wage theft”  Ordinance to add obligations upon a “hiring party” that engages a “freelance worker.”  

The Ordinance broadly defines a “hiring party” to be “any person, including the City of Columbus, who retains a freelance worker to provide any service” and excludes only governmental entities other than Columbus. A “freelance worker” is an individual, whether or not the person has incorporated or is using a trade name.

For the second time since the enactment of New York's Wage Theft Prevention Act ("WTPA"), New York employers must issue a written annual notice and acknowledgment of pay rates and pay dates ("Notice") to all New York employees between January 1, 2013, and February 1, 2013.

In February 2012, after a flurry of negative feedback from employers statewide, the New York State Senate passed a bill striking the annual Notice requirement from the list of employer responsibilities set forth in Section 195.1 of the New York State Labor Law. However, because the bill remains dormant in the New York ...

By Adam Abrahms

Last year, California passed the Wage Theft Prevention Act (AB 469) which amended several existing Labor Code sections and added several new ones. Most notably, in addition to criminalizing certain wages payment violations, the statute created a new mandate for California employers to provide each new employee a written notice upon hire containing individual information, including their regular rate of pay, overtime rates, and regular pay day. The law also required the California Division of Labor Standards Enforcement (DLSE) to prepare a template of the ...

by Marisa S. Ratinoff, Susan Gross Sholinsky, Eric A. Cook, and Jennifer A. Goldman

California’s Wage Theft Prevention Act of 2011 (“CAWTPA”) went into effect on January 1, 2012. The CAWTPA requires most private-sector employers to provide notice to non-exempt employees of certain wage payment information, among other things. As we previously reported (see Act Now Advisory “New California Laws Increase Penalties for Employee Misclassification and Wage Theft”), the CAWTPA requires the Labor Commissioner (“Commissioner”) to create a template for employers to ...

by William J. Milani, Jeffrey M. Landes, Susan Gross Sholinsky, and Jennifer A. Goldman

For the first time, in 2012, New York employers must provide all New York employees with an annual notice and acknowledgment of pay rate and pay date ("Notice") pursuant to the Wage Theft Prevention Act ("WTPA"), which amended the New York State Labor Law ("Labor Law"), effective April 9, 2011.

As we previously reported (see Act Now Advisory "Governor Paterson Signs Overhaul of New York State Labor Law" (Dec. 15, 2010), and Act Now Advisory "They're Here – New York State Department of Labor Issues ...

by William J. Milani, Jeffrey M. Landes, Susan Gross Sholinsky, and Jennifer A. Goldman

For the first time, in 2012, New York employers must provide all New York employees with an annual notice and acknowledgment of pay rate and pay date ("Notice") pursuant to the Wage Theft Prevention Act ("WTPA"), which amended the New York State Labor Law ("Labor Law"), effective April 9, 2011.

As we previously reported (see Act Now Advisory "Governor Paterson Signs Overhaul of New York State Labor Law" (Dec. 15, 2010), and Act Now Advisory "They're Here – New York State Department of Labor Issues ...

by Jennifer A. Goldman and Peter M. Panken

Since the Wage Theft Prevention Act (“WTPA”) became effective April 9, 2011, New York employers have faced harsher penalties for failing to pay employees minimum wages and overtime.  As reported in two previous Act Now Advisory’s, (December 15, 2010, and April 4, 2011) the WTPA, which amended New York’s Labor Law, significantly increased employers’ penalties for unpaid wage and hour violations, among other things.

Prior to the effective date of the WTPA, liquidated damages were capped at 25 percent of the unpaid wages due. Under ...