Assembly clarifies 'wages' in labor law, expanding coverage of nondiscretionary compensation

Assemblymember Simon explained A.2222-a, legislation intended to clarify the statutory definition of "wages" to ensure nondiscretionary compensation — including supplements and bonuses that are not purely discretionary — remains recoverable under the Labor Law.

Simon told colleagues the bill responds to judicial decisions that, she said, had read criminal-liability language into civil wage-recovery provisions and thereby narrowed recovery for some employees. She cited recent cases and explained the bill would require employers to make written notice when a payment is purely discretionary.

Assemblymember Walsh questioned examples of discretionary versus performance-based bonuses and sought clarification on how the law would operate in practice. Simon answered that truly discretionary supplements must be communicated in writing in advance; otherwise courts could infer compensation is part of wages.

Opponents, including the National Federation of Independent Business as noted on the floor, contended the bill could impose burdens on small employers and create advantages for plaintiffs' attorneys; supporters, including the National Employment Lawyers Association and AFL-CIO (noted by the sponsor), said the measure protects workers from improper exclusions.

The Assembly recorded a 132–8 vote to pass the bill; the sponsor said the act takes effect immediately.