In New York State, businesses need to ensure they pay employees properly and on time in order to maintain compliance with New York Pay Schedule Requirements.
Here is everything businesses need to know.
When it comes to payroll in New York, businesses need to ensure that they pay employees on time in order to process New York payroll properly and compliantly.
Under the New York State Frequency of Pay Law, businesses must meet certain requirements when creating a pay schedule for employees. The law applies to all private sector employers and most employees working in New York State.
Manual workers in the state of New York must be paid weekly.
This weekly payment must be made no later than seven calendar days after the end of the week in which the wages were earned.
A manual worker is considered a "mechanic, workingman, or laborer" in New York. More specifically, the state typically views any employees who spend more than 25% of working time engaged in “physical labor” as manual workers.
Some other examples of a manual worker include:
Businesses should note that the definition of a manual worker in New York State has no fixed list of professions covered by the law. Businesses having trouble determining if an employee is a manual worker should reach out to a New York HR Outsourcing Company for help.
In the case of non-profit companies, manual workers must be paid in accordance with the terms of employment; however, they cannot be paid less frequently than semi-monthly.
Manual workers in the railroad industry need to be paid on or before Thursday of each week. This needs to include wages earned during the seven-day period ending on the Tuesday of the preceding week.
A railroad worker is considered any person employed by an employer who operates a steam, electric, or diesel surface railroad or is engaged in the sleeping car business. Important to note is that this does not include any employee in an executive capacity or for governmental agencies.
Employers of commission salespersons must pay such employees in accordance with any agreed terms in the commission agreement.
However, employers still need to ensure that such workers are paid no less than once per month, and no later than the last day of the month following the month / period in which the wages were earned.
If wages are substantial, additional compensation earned, including extra or incentive earnings, may be paid less frequently than once a month.
A commission salesperson is considered to be any employee who:
This does not apply to an employee whose principal duties are of a supervisory, managerial, executive, or administrative nature.
For clerical and other non-manual workers in the state, employers must set up a pay schedule of at least twice per month (semi-monthly).
This includes any workers that do not fall into any of the other previously mentioned categories.
Some examples of clerical or other non-manual workers include:
New York Pay Frequency does not apply to employees classified as executive, administrative, or professional employees who also earn over $900 per week. Important to note is that an employee's exemption alone under New York Overtime Law does not exempt them from New York Pay Frequency. While the criteria for the duties test is the same, the salary threshold requirement is not.
Additionally, federal, state, and local government employers are also exempt from this law.
Large companies that otherwise would be required to pay employees weekly may apply to pay employees bi-weekly by filling out the Application for Authorization to Pay Manual Workers Less Frequently Than Weekly.
In order to apply, a large business must:
The New York Department of Labor considers a number of factors for businesses that apply, but those that do and are approved may pay employees on a bi-weekly schedule.
There is no single pay frequency rule that applies to all healthcare workers in New York. The required schedule generally depends on how the employee is classified under New York's pay frequency law.
For example, a healthcare employee can qualify as a manual worker if they spend 25% of their time engaged in "physical labor" and therefore must be paid weekly, which may include CNAs, HHAs, and home healthcare workers. A healthcare worker who spends less than 25% of their time engaged in "physical labor" is counted as a non-manual employee and therefore must be paid at least twice per month, which may include medical billing clerks, patient registration clerks, or facility admins.
Employers must carefully evaluate the employee's actual job duties rather than relying solely on their job title or industry.
Election workers are considered government employees, so they are excluded from the New York pay frequency law. Therefore, election workers employed by a government entity are not generally subject to any fixed pay period requirements. Compensation will instead be determined by the employment terms.
Being a seasonal employee does not automatically establish a separate pay frequency under New York's pay frequency law. Employers should determine whether the worker is a manual worker, commission salesperson, clerical, or non-manual worker.
Not necessarily, as New York's pay frequency law contains an exception for employees working as an executive, administrative, or professional employee earning more than $900 per week. Simply classifying an employee as salaried or exempt from overtime does not automatically remove the employee from the pay frequency requirements.
The last thing you want when processing payroll in New York is to make a mistake that can lead to New York fines, penalties, legal trouble, and possible employee-employer confrontation.
In order to ensure that employees are paid properly and on time, there is no better answer than a New York Payroll Software Solution. With a New York Payroll Company at your back, you can feel confident in your back-end office operations and no longer worry about employees being paid properly and accurately.
To get started with finding a New York payroll provider, contact us today.