November 27, 2017

A Labor Law claim for work performed out-of-State.

Labor Law, Article 6, which contains the unlawful deductions, notice, and record keeping provisions which plaintiffs claim were violated, does not indicate that the provisions were intended to apply when the work in question is performed outside the state. Article 19, which contains the minimum wage, overtime, and spread of hours provisions identified in the complaint, includes a "Statement of Public Policy," which states, in relevant part: "There are persons employed in some occupations in the state of New York at wages insufficient to provide adequate maintenance for themselves and their families.... Employment of persons at these insufficient rates of pay threatens the health and well-being of the people of this state and injures the overall economy."

As these statutes do not expressly apply on an extraterritorial basis, plaintiffs' claims under these provisions, based on labor performed outside New York, do not state a cause of action under Article 6 or Article 19 of the New York Labor Law.

Practice point:  Under New York Law, no legislation is presumed to be intended to operate outside the territorial jurisdiction of the state enacting it, unless expressly stated otherwise.

Case:  Rodriguez v. KGA Inc., NY Slip Op 07948 (1st Dep't November 14, 2017)

Here is the decision.