BILL NUMBER: S3646
SPONSOR: MURRAY
TITLE OF BILL:
An act to amend the labor law, in relation to the definition of manual
worker
PURPOSE:
To update the definition of manual worker in labor law.
SUMMARY OF PROVISIONS:
Section One of the bill amends subdivision 4 of section 190 of the labor
law to define a manual worker in statute as a "worker whose primary duty
is to engage in physical labor." This section also directs the commis-
sioner of labor to adopt regulations establishing criteria for determin-
ing which occupations fall under this definition of manual worker.
Section 2 of the bill contains the effective date.
JUSTIFICATION:
New York Labor Law 5 190 defines "manual worker" - using outdated and
undefined terms, from as far back as the 1800s - to mean "a mechanic,
workingman or laborer," there is no further statutory or regulatory
definition to clarify this definition which has led to unfair and arbi-
trary application of weekly pay mandates.
The Department of Labor's FAQ guidance document on pay mandates only
says that it interprets "manual worker" to apply to any worker who
spends more than 25% of working time engaged in "physical labor," and
that "physical labor" includes "countless" physidal tasks performed by
employees. Further, NYS DOL field auditors have provided employers with
inconsistent determinations as to what occupations meet this statutory
definition of "manual worker."
As result of these vague terms and open-ended guidance, employers may be
in violation of the Labor Law's weekly pay mandate for manual workers,
even though such workers received full pay on a biweekly basis. Such
actions would have constituted a simple Labor Law violation until 2019,
when the First Department's decision in Vega v. CM & Assocs. Constr.
Mgmt., LLC, 175 A.D.3d 1144 (1st Dep't 2019), misapplied the wage theft
provisions of Labor Law 5 198 and determined that manual workers who are
paid in full every two weeks are entitled to seek, as liquidated
damages, an extra payment equal to half of all wages they had already
been paid for up to six full years.
This outcome is exposing employers to significant - in some cases,
multi-million dollar -damage claims in cases where employers used the
biweekly pay cycle, but also where employees received full payment of
wages, as per their mutually agreed upon pay schedule with their employ-
er. Since Vega was decided, more than 200 claims have been filed, often
aimed at small, independent businesses.
This legislation will provide for much needed clarity and specificity
for employers, regulators and courts in ensuring that occupations that
should be classified as manual workers are properly identified. It will
also help employers determine which of their workers must receive weekly
paychecks so that they will not be at risk of unknowingly violating a
weekly pay mandate based on guidance that currently is unclear and arbi-
trary.
LEGISLATIVE HISTORY:
2024: S6108 - Referred to Labor
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
Statutes affected: S3646: 190 labor law, 190(4) labor law