Assembly clarifies wages law to include nondiscretionary compensation and tighten notice on discretionary payments

Assemblymember Simon explained A.2222‑a (calendar February), a bill to clarify the definition of wages in the labor law so it includes nondiscretionary compensation and to require clearer written notice when compensation is purely discretionary.

Simon said the measure responds to judicial interpretations that have carved out certain supplemental compensation and cited recent appellate decisions. She said the bill restores the plain-language meaning of prior amendments and ensures employees are aware in writing when any part of pay is truly discretionary. During questioning, members asked for examples of purely discretionary bonuses versus performance-based pay; Simon said discretionary grants must be explicitly communicated to employees in advance.

The bill drew support from employment-law organizations and the AFL‑CIO, and opposition from business groups such as the NFIB and the New York Insurance Association, which argued the bill could shift burdens to small employers. Sponsors countered those concerns, saying the measure is primarily evidentiary and only requires clarity when an employer intends to make a payment wholly at its own discretion.

The clerk recorded the vote: Ayes 132, Nays 8. The bill was passed.