New York Labor Compliance

Under New York's Fair Workweek legislation, employers in the restaurant industry must take certain measures to ensure that their employees have predictable and fair work schedules. 

Enabling Labor Compliance
Types of Exceptions
Running the Labor Exceptions Report
Exception Warnings
Exception Warnings within the Punch Edit Screen
Call-in / Reporting Pay
⚠️ Access to this feature may require an upgrade from your current plan.
⚠️ The Labor Exceptions report is only available with 7punches or a POS labor integration.

To Enable Labor Compliance

1. Head to Company Settings > Labor & Compliance.

2. Under the 'Jurisdiction' dropdown choose 'New York'

3. New York labor compliance settings will automatically populate. You can choose to manually adjust the settings at the bottom of the page and remember to click 'Save.' 


4. To re-sync your settings to the New York defaults (including the Overtime rules), click the 'Re-sync labor & compliance settings' button.

Types of Exceptions

Spread of Hours

If an employee's workday extends beyond a 10-hour duration, between the beginning and end of their workday. This includes the total time spent working, meal breaks, and intervals when the employee is off duty.

Here's an example to illustrate a spread of hours exceeding 10 hours: Liam's workday is from 7 AM to 10 AM, and from 7 PM to 10 PM. Even though Liam worked for a total of 6 hours, the spread of hours = 15 hours.


If an employee works two shifts over two days, and there is less than 11 hours between shifts.

Last Minute Schedule Change

Changes made to an Employee's schedule with fewer than 14 days notice. Including:

  • Change in shift times
  • Deletion of a shift
  • If an Employee's punch in/out time doesn't match the latest scheduled shift, within an allowable variance of 15 minutes:
    • Manual shift flags of Late / No-Show / Sick are exempted
    • Employee-requested changes through the Shift Pool are exempted

If a last-minute schedule change is made within 14 days of an Employee's hire date, this will not cause an exception.

Call-in Pay / Reporting Pay

In compliance with New York State regulations, employees who report working for any length of a shift are entitled to receive at least 3 hours at the applicable minimum rate, regardless of whether their shift was cut and they worked less than 3 hours.

⚠️ Call-in/reporting pay requirements can vary by industry. For example, in New York City, restaurant employees typically receive a minimum of 4 hours for call-in/reporting pay. It is best practice to verify the specific regulations applicable to your industry to ensure compliance.

Please refer to the New York State Attorney General's website for more details.

You can find more information on New York's Fair Workweek legislation here.

To run the Labor Exceptions Report

1. Go to Reports > Labor Exceptions

2. Select the Date Range and Location and click 'Get Report.'



Included in the report:

  • Employee who is owed the exception fee
  • Location
  • Date of the labor exception
  • Exception type
  • Exception fee
  • Exception details

Exception Warnings

To avoid/reduce exceptions, you will be warned about potential exceptions as you make changes to your schedule. Each time you make a change to a shift that causes one or more exceptions, a warning modal will appear indicating the type of exception and the associated cost. 

Before publishing a schedule, if there are labor exceptions that will be incurred, you will see a summary showing the number of exceptions, the total cost, and details of each exception.

Once published, the exception will be recorded in the report. Changing a shift multiple times can incur an exception each time, so be sure to consider the costs before making last-minute schedule changes.

You will also see a warning when assigning shifts through the Shift Pool that could cause an exception:


Exception Warnings within the Punch Edit Screen

If using 7punches, Exceptions for missed breaks and split shifts will show on the left side of the punch:

Click here to view all 7punches settings.

Reporting Pay / Call-in Pay

Reporting Pay / Call-in Pay is a form of wages that compensates employees who are scheduled to report to work and are sent home before the conclusion of their scheduled shift. These employees are entitled to be paid for unworked hours.

In compliance with New York State regulations, employees are entitled to at least three hours for one shift, or the number of hours in the regularly scheduled shift, whichever is less.

⚠️ Reporting Pay / Call-in Pay may require an upgrade from your current plan.

⚠️ Managers/Assistant Managers require the following permissions to have visibility on this feature: ‘Can manage time punches’, ‘Can manage exceptions’, and ‘Can run reports’.

⚠️ Reporting Pay / Call-in Pay hours do not contribute to calculating hours worked, such as overtime hours.

⚠️ If rounding rules have been enabled for 7punches, this may affect shifts eligible for Reporting Pay and the costs associated.

To enable Call-in Pay

  1. Login as an Admin.

  2. In the left navigation bar, select Settings > Company Settings > Labor & Compliance:


  3. Under the section Advanced Labor, enable NYC Call-in - Reporting Pay:

  4. Be sure to hit 'Save' to complete these changes!

Once Reporting Pay / Call-in Pay has been enabled, it will automatically appear for Admins and Managers in the following areas: 

1. On the Time Clocking page as an exception warning.


2. On a Punch Overview.


Admins and Managers/Assistant Managers (with permissions) can click on the warning to further dismiss/restore an exception warning:

3. The Worked Hours and Wages Report.

Similarly, you can export the report directly from a closed timesheet:


4. The Labor Exceptions Report.


5. The Punch Audit Report, when the exception has been dismissed.


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