Nov 21, 2025

Non-profit institution claim of being exempt from the wage orders under New York States Labor Law §652(3)(b)" rejected

Home health aides [Plaintiffs] employed by the Defendants, alleged, among other things, that Defendants failed to pay them the New York State minimum wage, overtime pay, and spread-of-hours pay in violation of New York State Labor Law §§663 and 650 et. seq. and 12 NYCRR §142-2.4. 

Defendants submitted documentary evidence showing their certifications electing to pay the statutory minimum rate in lieu of minimum wage orders pursuant to Labor Law §652, and claimed non-profitmaking institution status within the meaning of Labor Law §652(3) and thus were "exempt from the wage orders" under Labor Law §652(3)(b).

The Appellate Division said that even if the Defendant's certifications were sufficient to show that Defendants are a non-profitmaking institution exempt from the wage orders under Labor Law §652(3)(b), Supreme Court correctly determined that this exemption is also contingent on Defendants first showing that they "pa[id] and continue[d] to pay" Plaintiffs the statutory minimum wage.

Plaintiffs had alleged that Defendants had paid them for only 13 hours of work when they worked 24-hour shifts, which effectively reduced their hourly rate to an amount "well below New York's statutory minimum wage for the period 2019 to 2021". 

Finding that Defendants failed to submit evidence disputing Plaintiffs' allegations, the Appellate Division unanimously affirmed Supreme Court's decision denying Defendants' motion to dismiss Plaintiffs' Labor Law action, with costs.

Click HERE to access the Appellate Division's decision posted on the Internet.