New York State Labor Law Penalties and Fines for 2023

Businesses in New York State must maintain compliance with both state and federal laws in order to avoid legal trouble, as well as hefty fines and penalties. Here are the labor law penalties and fines for New York State in 2023.

Labor Law Penalties and Fines for 2023

New York labor law compliance is a responsibility that every employer knows they have. However, many struggle with actually managing compliance, and even more managers are unaware of just how detrimental some of the fines and penalties can be.

For the convenience of New York State businesses, here are the federal and state penalties for non-compliance in 2023.

Federal Labor Law Penalties for 2023

Below are the five most important, and common labor law penalties to be aware of regarding federal labor laws. Important to note, is that the list is not all-inclusive, rather it includes the most common penalties. 

Fair Labor Standards Act (FLSA)

For repeated or willful violations of the FLSA’s minimum wage or overtime requirements, the maximum monetary penalty will increase to $2,374.

Penalties for violation of the FLSA’s child labor restrictions will increase from to a maximum of $15,138 per under-18 worker, while violations resulting in the child’s death will increase to a maximum of $68,801, which may be doubled for repeated or willful violations.

Occupational Safety and Health Act (OSHA)

Under OSHA, the maximum penalty for posting, other-than-serious, serious, and daily failure-to-abate violations increases to $15,625. The minimum penalty for willful violations increases to $11,162, while the maximum penalty increases to $156,239. The penalty for repeated violations also increases to $156,239.

Family and Medical Leave Act (FMLA)

The penalty for failing to comply with the posting requirement of FMLA increased to $204.

Form I-9

The penalty for the first offense for substantive violations or uncorrected technical errors ranges from $252 to $2,507. Second and subsequent paperwork offenses now range from $1,161 to $2,322.

EEOC & Discrimination

Compensatory and punitive damages may be awarded in cases involving intentional discrimination based on a person’s protected class under Federal Equal Opportunity Employment Laws (for example, a person’s race, color, national origin, disability, etc.).

Maximum compensatory and punitive damages depend on the size of the employer and can range from a recovery amount of $50,000 to a recovery amount of $300,000.

In intentional age discrimination, or in cases involving intentional sex-based wage discrimination under the Equal Pay Act, victims cannot recover either compensatory or punitive damages, but may be entitled to liquidated damages in the amount equal to the back pay awarded to the victim.

New York State Labor Law Penalties for 2023

Below are the seven most important, and common labor law penalties to be aware of regarding New York State labor laws. Important to note, is that the list is not all-inclusive, rather it includes the most common penalties. 

New York State Paid Sick Leave

Failure to provide benefits such as New York Sick Leave is equivalent to a failure to pay employee wages. Employers who fail to provide sick leave benefits may be subject to an order assessing the full amount of the wage underpayment, 100% of liquidated damages, and civil penalties up to double the amount to be due to the employee.

New York State Sexual Harassment Prevention

Fines start at $100 per employee for the first violation of New York State Sexual Harassment Laws and increase from there. Fines go up per employee and per number of violations which include not providing training to employees annually, not providing a sexual harassment prevention policy, and not supplying a complaint form.

New York State Paid Family Leave and Disability

During a period of noncompliance with New York State PFL and/or DBL benefits, penalties imposed on the employer would be a maximum of .5% of the employer’s payroll. Per additional periods of noncompliance, an additional, maximum penalty would be imposed of $500. Failure to secure required PFL and/or DBL benefit insurance is a misdemeanor, which is punishable by a fine that could range from $100-$500, or imprisonment, or both. A second violation of failing to secure PFL/DBL benefit insurance may range from $250-$1,250 and a third or subsequent violation of a maximum of $2,500.

New York State Worker’s Compensation Board

For employers with 5 or fewer employees, the penalty for failing to secure WC coverage within a 12-month period is a misdemeanor punishable by a fine between $1,000 and $5,000. Failure to secure WC coverage for more than 5 employees within a 12-month period is a class E felony punishable by a fine between $5,000 and $50,000. Other penalties may apply. If the Board does not receive information on an employer’s coverage, the penalties for non-compliance can be as high as $2,000 for every 10-day period without coverage. By the time an employer receives their first penalty notice, the penalty may be more than $12,000.

Meal Periods

Employers who fail to give employees their required meal periods under New York State Law must compensate employees for their time worked. If the time adds up to more than 40 hours in one week, the employee is entitled to overtime pay.

Labor Posting Requirements

Employers who fail to provide employees with digital copies of all required labor postings, and fail to post all required labor postings in a conspicuous place in the physical workplace, will be subject to monetary fines. Penalties may consist of $100 for the first offense, a fine between $100 and $500 for the second offense, and fines of not less than $300 for all subsequent offenses.

Businesses looking for an easy solution for labor law posting requirements should contact EBC regarding labor law poster services

No-Fault Attendance Policies

Employers with No-Fault Attendance Policies should ensure that their policy does not apply demerits, points, or deductions to employees who take legally protected absences under federal, state, or local law. Some examples of legally protected absences include, but are not limited to, New York State Paid Sick Leave, New York State Disability, and New York State Paid Family Leave, and Family and Medical Leave Act (FMLA). Noncompliance with this can result in civil penalties, liquidated damages, rehiring/reinstatement of a discharged employee for their former or equivalent positions, and/or award pack pay or front pay. Civil penalties can range from $10,000 for the first violation to $20,000 for repeated violations.

Get Help With New York Labor Law Compliance

Businesses will want to look to avoid these fines at all times, as any single fine can be a big detriment to any business. Unfortunately, the fines don't end with the above list. 

For companies who are struggling with compliance management or companies that don't want to spend the time or resources on compliance management, New York HR Services may be the answer for you. 

Contact us today to learn about how EBC HCM is already helping countless businesses with compliance management and human resources. 

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