If you are a victim of wage theft in New York, you are not alone. The New York City Comptroller publishes annual data on wage theft from the New York Department of Labor (NYS DOL) and U.S. Department of Labor US DOL)—and the numbers are shocking.
Numerous companies owe their employees hundreds of thousands of dollars in unpaid wages, and this is just in New York City. Statewide, the numbers are even higher. While government authorities pursue settlements on behalf of workers in some cases, in the vast majority of circumstances, it is up to workers to assert their legal rights.
What You Need to Know About New York’s Wage Theft Laws
With this in mind, what do you need to know if you are a victim of wage theft? Here is an overview of what workers need to know about New York’s wage theft laws:
What Constitutes “Wage Theft?”
The New York City Comptroller provides a concise definition of “wage theft” under New York law. As the Comptroller explains:
“The term ‘wage theft’ refers to the act of employers stealing earned wages from their employees. Wage theft can include the failure to pay minimum wage, overtime, stealing tips, misclassification of employees as independent contractors, payroll fraud, and the failure to provide required meal and rest breaks.”
The main law that protects employees against wage theft in New York is the Wage Theft Prevention Act (WTPA), which is part of the New York State Labor Law. The WTPA covers all private-sector employers in the state.
Under the WTPA, employers are required to provide their employees with written notice of the pay they are entitled to receive (this is referred to as a “wage theft prevention notice”). This notice must disclose:
- The employee’s normal pay rate, overtime pay rate (if the employee is eligible for overtime) and any allowances;
- Whether the employee will be paid an hourly wage, salary or commissions;
- The employee’s regularly scheduled payday;
- The employer’s official name and any trade names it uses; and,
- The address and phone number of the employer’s principal location.
The wage theft prevention notice is intended to help ensure that employees know how much they are entitled to be paid and when they are entitled to payment. Under the WTPA, employers can face liability for violations including (but not limited to):
- Failing to provide a legally compliant wage theft prevention notice;
- Failing to pay minimum wage or overtime;
- Failing to pay tips or other allowances;
- Failing to provide breaks, leave or benefits; and,
- Improperly classifying employees as independent contractors in order to avoid payroll liability.
Again, these are just examples. From failing to compensate employees for travel time to claiming that wage-based employees are required to work “off the clock,” wage theft can take many other forms as well. If you have any reason to believe that you may be a victim of wage theft, you should discuss your legal rights with an attorney promptly.
Also, to be clear, while the Wage Theft Protection Act provides important protections against wage theft in New York, it is not the only law that applies. The federal Fair Labor Standards Act (FLSA) and other state and local laws provide wage-related protections as well. But, in most cases, employees who need to file wage theft claims in New York will be filing under the WTPA.
Who Can File a Wage Theft Claim in New York?
A recent amendment to the Wage Theft Protection Act has expanded eligibility to file a claim with the NYS DOL. As amended, the WTPA now allows any employee who makes less than $1,300 per week to file with the NYS DOL instead of filing a lawsuit in court in most cases. This includes both wage-based employees who are entitled to overtime when they work more than 40 hours in a week and “exempt” employees who receive an annual salary.
Employees who are not eligible to file WTPA claims with the NYS DOL can file wage theft claims in New York state court.
Regardless of whether you can file a claim with the NYS DOL or you need to sue your employer in court, it is important to have an experienced attorney on your side. Navigating the process is complicated, and you need to ensure that you are seeking the full damages you are entitled to recover. Your employer may hire attorneys to dispute your claim as well, and you need to ensure that you are ready to do whatever it takes to protect your legal rights.
What Should You Do if You Have a Wage Theft Claim?
With all of this in mind, what should you do if you have a wage theft claim in New York? If you believe your employer owes you unpaid wages, salary, commissions, overtime or any other form of work-related compensation or benefits, you should:
1. Collect All Relevant Documentation
You should collect any documentation you have that is relevant (or potentially relevant) to your wage theft claim. This includes your wage theft prevention notice (if you received one), your most recent pay stubs and any documentation you have of your hours worked.
2. Take Detailed Notes
You should also take detailed notes—especially if there are relevant facts that aren’t documented. When did you work the hours in question? When were you supposed to be paid? Has your employer said anything about the wages you are owed? These are all important facts that your lawyer will need to know.
3. Talk to a New York Employment Lawyer as Soon as Possible
Finally, you should talk to a New York employment lawyer as soon as possible. A lawyer who has experience handling wage theft claims in New York will be able to help you understand your legal rights and seek the full compensation you deserve.
Schedule a Free Consultation with a New York Employment Lawyer at Bell Law Group
Do you have a wage theft claim in New York? If you need to know more about your legal rights, we strongly encourage you to get in touch. To schedule a free consultation with a New York employment lawyer at Bell Law Group, please call 516-280-3008 or contact us online today.
