Implementation of Fair Wages for New Yorkers Act
Proposed Rules: Closed to Comments
Statement of Basis and Purpose of Proposed Rules
The “Fair Wages for New Yorkers Act,” Section 6-134 of Chapter 1 of Title 6 of the Administrative Code of the City of New York (as added by Local Law 37 for the year 2012), requires certain companies that receive at least one million dollars of financial assistance from the City of New York to pay their employees no less than a living wage. Executive Order No. 7 for the year 2014 broadened the scope of the Fair Wages for New Yorkers Act, including specifying other “additional covered employers” that are required to pay no less the living wage to their employees at project sites.
These proposed rules would add a new Chapter 11 to Title 6 of the Rules of the City of New York to clarify provisions in the Fair Wages for New Yorkers Act (the Living Wage Law) and Executive Order No. 7, establish requirements to implement the law and meet its goals, and provide guidance to employers and employees. Specifically, these rules:
- Establish that covered employers and additional covered employers must pay the living wage to their employees;
- Set forth distribution and posting requirements for employee notices required;
- Set forth recordkeeping requirements;
- Clarify the Living Wage Law’s definition of “financial assistance recipient” and the Executive Order’s definition of “subsidy recipient;”
- Outline the Department’s enforcement steps, including how a covered employer may cure a violation, how the Department will commence a case, and how the Department may settle a complaint;
- Clarify that the Office of Administrative Trials and Hearings (OATH) will issue a decision on the record in all cases;
- Provide guidance to employers on how an OATH administrative law judge may calculate back wages for an employee;
- Clarify that if one or more employees start or have a civil action pending, it does not preclude the Department from commencing, prosecuting, or settling a case based on some or all of the same violations; and
- Clarify what other appropriate relief may be imposed for a violation, in addition to the penalties set forth in the law.