What happened
New York Labor Law § 191(1)(a) says a manual worker must be paid weekly. Payment is due no later than seven calendar days after the end of the week in which the wages are earned. Some large employers can get permission from the Commissioner of Labor to pay less often, but never less often than twice a month.
For several years, many workers sued employers that paid them in full, but every two weeks. They asked for liquidated damages equal to 100 percent of the late-paid wages under Labor Law § 198(1-a).
On May 9, 2025, Governor Hochul signed state budget legislation (Chapter 56 of the Laws of 2025, Part U). It added new language to § 198(1-a). The change took effect right away and applies to cases pending or filed on or after that date.
The new language covers an employer that paid wages on a regular payday, at least twice a month. For that employer, liquidated damages do not apply to a § 191(1)(a) violation. For a first violation, the worker can recover no more than the lost interest on the late wages. Interest is figured daily, for each day a payment was late, at the rate set under Banking Law § 14-a.
For conduct after May 9, 2025, full liquidated damages apply to a repeat violator. That means an employer that already has a final order finding a § 191(1)(a) violation for employees doing the same work. The order can come from the Department of Labor or a court.
What it means for workers
You still have the right to weekly pay if you are a manual worker. But if your only complaint is that full pay came every two weeks, the law now limits a first claim to lost interest. The limit does not cover unpaid wages, unpaid overtime or minimum wage violations. Section 198 still provides liquidated damages for those claims.
One question is still open. The Appellate Division, First Department (Vega v. CM & Associates, 2019) held that workers can sue over late pay. The Second Department (Grant v. Global Aircraft Dispatch, 2024) held they cannot. The amendment did not settle that split. We found no Court of Appeals decision resolving it as of September 17, 2026.
What it means for employers
The amendment lowers exposure for a first violation. It does not make biweekly pay for manual workers lawful. A final order now sets up full liquidated damages for later violations involving the same work.
What to do now
Workers: look at your pay stubs. Check how often you are paid and whether every hour was paid at the right rate.
Employers: identify which jobs count as manual work. Pay those workers weekly unless you hold an authorization from the Commissioner.
A wage-and-hour lawyer can review your facts.
This summary is general information, not legal advice. Usher Law Group was not involved in this matter.
All developments