By Ty Hyderally, Esq. and Kenny Delgado

September 25, 2026

New York lawmakers are advancing legislation that could significantly strengthen employee protections when it comes to bonuses and other promised compensation. The proposed Wage Payment Integrity Act (S2236A) aims to clarify what counts as wages and make it easier for workers to recover compensation they have earned but not received.[1]

The proposed Wage Payment Integrity Act is designed to combat wage theft by strengthening New York’s labor laws. The legislation seeks to modernize the law to reflect today’s workplace realities, where compensation is often tied to team performance, company performance, or other factors beyond an individual employee’s direct work.

What Would Change?

1. More Bonuses Would Be Protected as “Wages”

The bill would expand the definition of wages to include virtually any employment compensation that is not payable solely at the employer’s discretion. This means that bonuses, incentive payments, and other promised compensation could receive the same legal protections as regular wages, if the payment is not completely discretionary.

Under the proposal, employers who want a bonus to be considered discretionary must clearly notify employees that the payment is entirely subject to the employer’s sole and absolute discretion. The notice must be clear, prominent, timely, and unambiguous.

2. Stronger Protection When Employment Terms Are Disputed

The bill would also strengthen employee rights in disputes involving compensation agreements.

If an employer fails to provide written employment terms when required by law, and those records are later requested by either the employee or state authorities, the employee’s version of the employment terms would be presumed correct unless the employer can prove otherwise.

This change would encourage employers to maintain proper documentation and provide workers with additional protection in compensation disputes.

3. Clarification of Wage Theft Remedies

Another key provision clarifies that criminal penalties for certain wage theft violations do not eliminate or restrict an employee’s right to pursue civil remedies for unpaid wages. The bill aims to ensure workers retain access to the full range of legal remedies available under New York labor law.

Potential Impact on Employers

If enacted, employers may need to:

• Review bonus and incentive compensation plans.
• Clearly identify which payments are discretionary.
• Strengthen employment documentation practices.
• Ensure compensation agreements are communicated in writing.
• Reassess legal exposure related to unpaid bonuses and incentive awards.

Organizations that already maintain clear compensation policies may see relatively little disruption, while employers that rely on ambiguous bonus language could face increased legal risk.

Potential Impact on Employees

For workers, the bill could provide greater certainty that promised compensation will be treated as protected wages. Employees may gain stronger legal standing when seeking unpaid bonuses, incentive compensation, or other forms of remuneration that were represented as part of their compensation package.

The legislation is intended to make it easier for employees to enforce compensation agreements and reduce disputes over whether a promised bonus was truly discretionary.

Final Thoughts

The proposed Wage Payment Integrity Act represents a significant effort to strengthen New York’s wage theft protections and increase transparency around employee compensation. By treating most non-discretionary bonuses as wages and providing stronger enforcement tools, the bill could reshape how employers structure and communicate compensation plans while giving workers greater protection when compensation disputes arise.

If you feel that you are the target of discrimination, harassment, whistleblower retaliation, or some other issue in the workplace, or if you have any questions regarding your rights as an employee, you should seek out an experienced attorney who concentrates on employment law. Our firm has been concentrating on employment law for over twenty-three (23) years!

En nuestra firma hablamos español.

This blog is for informational purposes only. It does not constitute legal advice and may not reasonably be relied upon as such. If you face a legal issue, you should consult a qualified attorney for independent legal advice about your particular set of facts. This blog may constitute attorney advertising. This blog is not intended to communicate with anyone

[1] New York State Senate, Bill S2236A, https://www.nysenate.gov/legislation/bills/2025/S2236/amendment/A