GNYADA January 2015 Newsletter

Changing Employee Pay Plans – Wage Notice Options

14

The Association recently notified you about changes to the Wage Theft Prevention Act, which eliminated annual wage notices to employees. However, other provisions of the law remain in effect. For instance, dealers must con- tinue to provide Payday/Pay Rate Notices to new employ- ees. This notification must also be provided seven (7) days before the change takes effect, if the change won’t be reflected on the employee’s pay stub/statement. New Notices are also mandated when either a change in a pay plan results in a new commission agreement or if there is a reduction in an employee’s wage rate (and the employee has received prior notification of the implemen- tation of the reduced pay rate). Employee Raises Employees receiving pay increases may be notified through a Payday/Pay Rate form, or alternatively, dealers may rely on the change in pay rate reflected on the employee’s pay stub to notify employees of an increase in pay if the applicable changes are reflected in pay stubs that comply with each and every requirement below.

Each pay statement must list the following (see below; the numbers here correspond with the ones below):

1 2 3

The employer’s name, address, and phone number; The employee’s name; The dates of work covered by the applicable payment of wages; The rate or rates of pay and the basis for the rate, for example, whether the employee is paid daily or week- ly based on hours or shifts worked, pieces produced, salary, or commission; Allowances claimed as part of the minimum wage, if applicable; and Gross wages;

4-6

7

8 9 10

Deductions; Net wages.

Record Retention Dealers must keep these payroll records for six years. Dealers should review their Payday/Pay Rate notice procedures to ensure compliance and call the Association with any questions.

Wage Statement (pay stub): Required Informa on under Sec on 195.3 SAMPLE WAGE STATEMENT (PAY STUB): REQUIRED INFORMATION

1. Employer name, address, and phone number

2. Employee name

3. Dates covered by payment

ABC Company, Inc. 1 Main Street Any town, NY 10000 Ph: 518-457-9000

Pay Period: 4/5/14 - 4/11/14

Pay Date: 4/14/15

No: 0001

4. Basis of payment (hourly, salary, etc.)

Employee: John Doe

Rate: Hourly Hours

Hours Regular Over me Credit

Allowance/ Gross

Gross Year to Date

Deduc ons Current

Deduc ons Year to Date

Vaca on Year to Date

350.00 65.65 Current

Net Pay

Rates paid (regular and ver me) 5. o

8.75

40

1050.00 196.95

13.13

5

-33.32 -43.56 -13.10 - .60 Fed WT NY WT Disability Garnishment -35.00 FICA

-99.96 -130.68 -39.30 -1.80

Hours worked (regular

6. and over me)

-105.00

Uniform pay Meals (3)

$10.90 $9.00

10.90

32.70 27.00

Allowances or Credits

7.

9.00

- 9.00

-27.00

Gross wages

8.

9. wages

Any deduc ons from

Vaca on Hours Earned .75

2.25

435.55

-125.58

$309.97

1306.65

-403.74

0

10. Net wages

This sample wage statement shows the basic requirements under Se on 195.3 for a non-exempt employee paid by the hour, covered by the Miscellaneous Wage Order. Please note that there may be addi onal requirements based upon the speciĮc pay agreement and/or wage order coverage.

LS 49 (12-14)

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • January 2015 11