Where New York differs from federal law
New York's minimum wage is higher than the federal rate and varies by region, and the salary level for exempt executive and administrative employees is also higher than the federal level and varies by region. Industry wage orders, such as those for hospitality and building services, add rules on matters such as tips and call-in pay. New York requires written wage notices at hire and detailed wage statements with each payment. Manual workers generally have to be paid weekly unless the employer has authorization to pay less often, and the remedies for violating that rule have been litigated and recently amended, so current law should be checked. Because state claims can reach further back in time than federal ones, exposure can build over several years.
Common trouble spots
Misclassifying roles as exempt based on title or salary alone, without looking at actual duties, is a frequent problem. Timekeeping issues include unpaid pre-shift or post-shift work, rounding practices, automatic meal deductions when breaks are interrupted, and off-the-clock messages. Tip pools and tip credits in the hospitality industry are closely regulated. Bonuses and commissions may have to be included in the regular rate for calculating overtime. Treating workers as independent contractors when they function as employees can create wage claims along with tax and insurance problems.
Auditing pay practices
We start with job descriptions, payroll records, time records, wage notices, and the policies managers actually follow. We sample pay periods to see whether the hours recorded match the hours worked and whether overtime was calculated correctly. Where problems appear, we discuss how to correct them going forward and whether back pay should be addressed, which has tax and settlement implications. Conducting the audit through counsel can help protect the analysis. If a complaint or agency inquiry is already pending, the audit is shaped around responding to it.
