STATUTORY PENALTIES ARE NOT AVAILABLE IN CLASS ACTIONS UNLESS THE STATUTE SPECIFICALLY AUTHORIZES RECOVERY IN A CLASS ACTION, NOT THE CASE HERE (SECOND DEPT).

The Second Department, reversing (modifying) Supreme Court, determined the class action plaintiffs were not entitled to class certification for the causes of action seeking statutory penalties and attorneys’ fees for failure to provide wage notices and statements in violation of Labor Law section 195 (1) and (3):

CPLR 901(b) provides that, “[u]nless a statute creating or imposing a penalty, or a minimum measure of recovery specifically authorizes the recovery thereof in a class action, an action to recover a penalty, or minimum measure of recovery created or imposed by statute may not be maintained as a class action.” The Labor Law provides for statutory penalties for violations of Labor Law § 195(1) and (3) (see id. §§ 198[1-b], [1-d] …). Inasmuch as Labor Law § 198(1-b) and § 198(1-d) do not specifically authorize recovery as part of a class action, the court should not have granted certification with respect to those issues … Maylou v Mittal, 2026 NY Slip Op 04497, Second Dept 7-22-26

Practice Point: Here the class action plaintiffs sought recovery of statutory penalties. The statutory penalties could not be recovered in a class action because the statute did not explicitly so provide.