Includes bonus in the definition of wages for purposes of the labor law when the formula under which a bonus is determined is available to the employer or when the amount of a bonus has been declared; relates to the forfeit of wages.
Summary
This bill amends the New York Labor Law to expressly include certain bonuses within the definition of “wages.” Under the proposal, a bonus is treated as wages when the bonus formula is definite and the employer has all the data needed to calculate it, or when the employer has already declared the bonus amount. The bill also clarifies that wages covered by the article are non-forfeitable once the amount is known, or can be known with reasonable certainty.
In practical terms, the measure would strengthen employees’ legal claims to earned bonus compensation and limit employers’ ability to withhold or rescind bonuses after they have become determinable. It would affect wage-payment rules under the Labor Law and could expand enforcement and recovery rights for workers seeking unpaid bonuses, while also creating clearer obligations for employers that use formula-based or discretionary bonus structures.
Impact
The bill would amend Labor Law section 190 and add new section 193-a. It broadens the statutory definition of wages to include qualifying bonuses and establishes that covered wages cannot be forfeited once they are ascertainable. This would likely affect wage disputes, payroll practices, and employer compensation policies, especially in industries that rely on annual, performance-based, or formula-driven bonuses. It may also influence how courts and the Department of Labor interpret bonus-related claims under New York wage law.
Sentiment
No committee transcript or vote record is available, so there is no documented legislative debate or recorded floor sentiment in the provided materials. Based on the bill text and caption, the proposal appears aimed at worker wage protection and compensation clarity, which typically draws support from labor advocates and employees. At the same time, employers may view the measure as limiting flexibility in bonus administration and increasing exposure to wage claims.
Contention
The main point of contention is likely whether bonuses should be treated as earned wages once a formula is known or a bonus is declared, versus remaining subject to employer discretion until payment is actually made. Supporters would likely argue that employees should not lose compensation they have effectively earned, while opponents may argue that the bill could convert incentive pay into mandatory wages and reduce employers’ ability to condition or adjust bonuses. The bill text does not identify any specific stakeholders, but the likely divide is between labor interests and employer/business interests.
Same As
Includes bonus in the definition of wages for purposes of the labor law when the formula under which a bonus is determined is available to the employer or when the amount of a bonus has been declared; relates to the forfeit of wages.
Includes bonus in the definition of wages for purposes of the labor law when the formula under which a bonus is determined is available to the employer or when the amount of a bonus has been declared; relates to the forfeit of wages.
Includes bonus in the definition of wages for purposes of the labor law when the formula under which a bonus is determined is available to the employer or when the amount of a bonus has been declared; relates to the forfeit of wages.