Liquidated Damages Curtailed In New York Pay Frequency Cases

New York employers received welcome news this week. The United States District Court for the Southern District of New York’s holding in Bryant v. Buffalo Exch., Ltd., No. 23-CV-8286, 2026 WL 1240054 (S.D.N.Y. May 6, 2026) upholds the New York Legislature’s recent amendment to the New York Labor Law (N.Y. Lab. L.), effectively barring liquidated damages for claims under N.Y. Lab. L. § 191(1)(a).

The provision at issue, N.Y. Lab. L. § 191(1)(a), requires that manual workers—workers who spend more than 25% of their time performing manual tasks—be paid weekly and not later than seven calendar days after the end of the week in which the wages are earned. Over the past several years, plaintiffs’ attorneys have argued that the law contemplates a private right of action and the proper remedy for violations is 100% liquidated damages of the late paid wages.

In Buffalo Exchange, the plaintiffs brought a putative class action under N.Y. Lab. Law § 191(1)(a), alleging that they qualified as “manual workers” and their employer paid them biweekly rather than on the weekly schedule as required by the statute. The plaintiffs sought interest on the supposedly late wages plus liquidated damages equal to 100% of the wages they allege were late. The court dismissed Buffalo Exchange’s motion to dismiss; however, after the ruling, the legislature amended the law to bar liquidated damages in cases where the employer is a first-time offender and pays wages at least semi-monthly, with the change applying immediately to all causes of actions pending or commenced at the time of enactment.

Relying on the recent amendment, Buffalo Exchange moved for partial judgment on the pleadings as to plaintiffs’ claims for liquidated damages. The plaintiffs opposed the motion, contending that the amendment’s retroactive effect rendered it unconstitutional under the New York constitution. The court cut through each of the plaintiffs’ constitutional arguments, holding that the amendment’s retroactive effect did not violate the New York Constitution’s Due Process Clause or Article VII.

Moving forward, New York employers can avoid liquidated damages in pay frequency cases so long as they are not repeat offenders and are paying their manual workers at least semi-monthly. However, it is important to note that neither the amendment, nor the Buffalo Exchange ruling changes employers’ obligations under N.Y. Lab. L. § 191(1)(a).

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