Wage Theft Law Targeted For Repeal By New York GOP

Republican lawmakers in New York state are working to undo a 2010 anti-wage theft law that labor activists hailed as a landmark piece of legislation protecting workers from dishonest employers.

The law, called the Wage Theft Prevention Act, ramped up the penalties against employers who fail to pay workers what they are owed and also criminalized retaliation against employees who lodge complaints about pay. The law went into effect last spring.

Republicans in the GOP-led state Senate passed a bill last week that would nullify a portion of the law, and on Monday they approved a budget and jobs plan that recommends repealing the law entirely. Several legislators have argued that the law's requirements -- in particular, that employers provide detailed wage statements to workers each year -- are too onerous on businesses and stifle job growth. The Democratic-controlled State Assembly has not taken up the measures yet.

A wholesale or even partial repeal of the law would be a boon to unscrupulous businesses in the state, said Patrick Purcell, a spokesman for United Food and Commercial Workers Local 1500, which championed the wage theft measure in 2010.

"The only people who have to concern themselves with this law are thieves," said Purcell, adding that employers who withhold wages end up with an unfair leg up against their competitors. "This helps make sure that good, responsible employers are not losing out to less reputable ones. The real cost here is when good employers do the right thing and other employers are screwing them over."

The bill passed in the Senate last week would undo the wage statement requirement. Under the current law, employers must provide a notice to each employee annually showing the worker's rate of pay, regular payday and any allowances deducted for meals or lodging. The statement is meant to force employers to be transparent about matters of pay and help workers recoup wages later if they believe they've been shorted. A business that doesn’t keep a worker's wage notification form on file could be fined.

The sample form provided by the state is a single page. But Sen. John DeFrancisco, who sponsored the repeal bill, called the notification requirement a "massive, costly mandate on every employer in the state" and the wage theft law in general "a mountain of costly, useless paper."

"Other than costing businesses to lose countless hours and waste millions of dollars, this mandate has done nothing to help employees or create new jobs," DeFrancisco said in a statement. "We have to eliminate mandates like this to make New York more competitive so businesses can focus on growing and creating jobs rather than keeping track of more paper and paying fines if they don't."

Kenneth Pokalsky, vice president of government affairs at the Business Council of New York State, said that "employers large and small" have voiced concerns about the cost of complying with the wage statement requirement, arguing that it merely duplicates information already found on worker paystubs. "Compliance cost estimates for the extra notice are in the $50 to $100 million range, while adding little if any extra protections," Pokalsky wrote in an email. Eliminating the requirement, he said, would be "a limited and reasonable amendment" to the wage theft law.

But Purcell argues that the requirements are minimal and help protect workers, noting that last week celebrity chef Mario Batali settled a $5.25 million lawsuit with restaurant workers in New York over allegations of withholding tips. "This is a joke. It's one sheet of paper," he said. "If that’s what's stifling the economy of New York state, then we're all in a really bad place."

New York isn't the first jurisdiction to pass a wage theft law. Nor is it the first state whose Republican lawmakers have tried to repeal one that's made it into the books.

Florida's Miami-Dade County passed an ordinance in 2010 that established a grievance process for workers who claim they've been shortchanged. So far, it's helped workers in the Miami-Dade County area recoup nearly $400,000 in owed wages. But a GOP-sponsored bill now being considered by the Florida legislature would quash the Miami-Dade ordinance and nullify any similar wage-theft laws enacted on the local level.

Comments

[hipocampelofantocame]

10:16 PM on 09/03/2012

A Republican victory this November would be the end of the
United States as we have known them. What a loss.

[RCTreistman]

01:37 PM on 04/11/2012

Here is a story of a win by underpaid workers in NYC and the WPTA is cited.

http://www.essexjobs.com/newsletter2/index.php/under-the-wage-theft-prevention-act-nyc-workers-claim-victory-against-unlawful-pay-practices/20121417/

[amluvinit2]

07:14 PM on 03/14/2012

Seriously? Making employers pay their employees what they are owed, or face stiff fines or penalties, stifles job growth?

[ZeraLee]

02:37 PM on 03/14/2012

How do conservatives plan to expand the economy by defunding the demand side of 'supply and demand'?

They favor the rich to the point of economic suicide. And they claim to be the party of fiscal responsibility?

[Mrs Main Street]

02:05 PM on 03/14/2012

First, let me say that I am a social democrat and a small business owner. I have 11 employees who at the beginning of each year reminded check for errors on their paychecks. They are reminded to compare their detailed pay stubs against the copy of their timecard that they receive each week. We are not perfect and we make mistakes. I also remind them to keep their pay stubs for at least one year to compare against their W-4. My sales staff is provided with a detailed list and computation of commissions. My payroll is done in house from a computer. I employee adults not children, I am simple asking that they be a participant in making sure they are paid all the money to which they are entitled. Why should I have to generate 11 additional reports (multiply that by 50 or 100 for larger small businesses) because they choose not to participate in their own economic health? I fully support legistlation where it exists and the passing of laws where there is none that provides for investigation without retaliation against employees with complaints and for substantial fines or criminal charges for employers found cheating employees wages.

[Gestas]

01:45 PM on 03/14/2012

Nothing worse than having to pay your employees what you owe them....

[gsmp]

01:38 PM on 03/14/2012

One of the sponsors of the bill is named and quoted in the body of the article. He's from CNY and has been entrenchedfor years. I met him long ago in his capacity as an attorney. He used to be a good guy. He's in my district so he'll be getting an earful.as will the congresscritter from NY25 who stood with i s.s a during the women'shealth dis_aster.

Every vote in every primary and election counts, folks!! These guys didn't just arrive with the tgaggers, they've been wor_ming their way in for decades. Don't just vote and figure the job is done. Go to 'meet and greets', talk to your neighbors and VOTE THEM OUT!!

[demisfine]

01:02 PM on 03/14/2012

Any legislator willing to sign this piece of trash should be voted out of office, and charged rent for the time they spent in said office.

[parlimentMike]

12:51 PM on 03/14/2012

Saying the wage theft legislation doesn't help create jobs, is like saying tax reform doesn't fix the faux security at the airports. It's not the point of the legislation. People were victimized by employers. Perhaps the Republicans could make their case for allowing employers to steal from employees.

[Paula Sacramony]

12:22 PM on 03/14/2012

Gee what a swell group of people.

For those who voted Republican,,,,how do you like it so far??

[HearMeNow1959]

12:16 PM on 03/14/2012

These GOTP politicians don't understand the concept because in their world, THEY are the ones stealing from their employers

[OneOleMan]

12:14 PM on 03/14/2012

"in particular, that employers provide detailed wage statements to workers each year -- are too onerous on businesses and stifle job growth."

Please forgive my ignorance but doesn't the IRS require much the same? Are computer programs so difficult to write that giving such information would be "too onerous" on the business?

Just the thoughts of an old man who grew up before TV.

[Gag Halfront]

12:01 PM on 03/14/2012

"...stifle job growth." Remember when the GOP tagline was "It's all about/think about the children?" Ah, the good ol' days. Different excuse for the same reason.

[DavidWalker]

10:49 AM on 03/14/2012

Another example of the GOP's fight against the average working man and support of the rich elite. All that sounds so "communist", but, that's what it is. The "Robber Barons" are back (from the 1880s) and this time they have a political party.

[Coherent1]

10:16 AM on 03/14/2012

Why would you want to repeal a law that keeps businesses from shorting employees on their hours? Hey, the unions got on my nerves sometimes when I was a Supervisor, but this is a good reason why unions are needed. If it were left up to some companies, they would nickle and dime every employee until the company gets caught. If you're a multi-billion dollar company, why would you want to cheat me of $100? I guess if you cheated 3000 employees at $100 per month, that would be $300,000 in payroll savings if the employees don't catch it? However, with a union, the company would have to pay penalties for each incorrect paycheck. Would you believe it if I told you a company argued with 15 employees over .25/hour, missing from their hourly wages? It was an $150 error the company refused to correct, however ended up paying each employee an additional $300 each in penalties when they only owed $10 per employee. They were expecting the error to go unnoticed.

Vote Democrat! If you're against abortion, don't have one. If you're against gay marriage, don't marry the same sex. They're both individual moral issues anyway. To vote any other way is to vote against your own personal self-interest.