Wage theft is a serious problem nationwide. Unfortunately, employers too often cheat employees out of money they’ve rightfully earned. Thankfully, New York offers some of the nation’s strongest wage theft protections.
The New York Wage Theft Prevention Act, or WTPA, aims to prevent wage theft by giving employees greater transparency regarding their wages. The law also expands the remedies available when employers fail to comply with these provisions and protects employees from retaliation for filing a complaint.
If you suspect you’ve been the victim of wage theft in New York, the dedicated employment lawyers at Joseph & Norinsberg can help you understand your rights and pursue recovery of your rightfully earned wages.
What Is Wage Theft?
Wage theft is when your employer doesn’t pay you for work performed, pays you less than the agreed-upon rate, or pays you less than minimum wage. Though the definition is straightforward, wage theft can take many forms, including the following:
- Not paying you for on-the-job training
- Not giving you your tips
- Making you work through unpaid meal breaks
- Taking deductions from your paycheck that bring you below minimum wage
- Not paying an overtime rate for hours worked in excess of 40 in one week
- Failing to provide holiday pay after an explicit written or verbal promise
- Refusing to provide your last paycheck
Wage theft is common in lower-wage industries like food service, construction, and retail, but the practice can happen in any sector.
What Is the New York Wage Theft Prevention Act?
The New York Wage Theft Protection Act was enacted to clarify employer obligations and employee rights regarding wages. The law requires employers to provide certain notice to employees about wages, enhances protections for employees who register a complaint, and imposes strict penalties for employers who don’t comply.
Since it was signed into law in 2011, the WTPA has since been strengthened by changes to the criminal code.
Wage theft takes an enormous toll on both workers and their families. One investigation found that 127,000 workers in New York had been victims of wage theft between 2017 and 2021. The total amount stolen is estimated at $203 million, though the U.S. Department of Labor has said that number is likely a considerable under-count.
Key Provisions of the WTPA
Under the WTPA, employers must provide workers with accurate, up-to-date information about their paychecks. The WTPA also protects workers who speak up if they think something’s wrong with their pay.
Employer Responsibilities
Employers must provide a written notice to new hires about wages in English or the employee’s primary language if the New York Department of Labor offers a translation. The notice must include the following information:
- The pay rate, overtime pay, and how the employee is paid, whether by the hour, day, week, commissions, or otherwise
- Any allowances taken, such as meal or housing deductions
- Regular pay schedule
- The official name of the company, any other names the company does business as, and the phone number and address of the main office
If any of the information on the wage notice changes, employers must inform workers at least a week before the change takes effect. If wages are reduced, the notification must be in writing. Hospitality workers must receive a notice for every change in their wages.
If you make less than $1,300 a week, your employer must obtain your consent before paying you via direct deposit.
Record Keeping
Employers must keep payroll information for six years. They are also required to maintain ongoing records of hours worked and wages paid—they aren’t allowed to create a record after the fact.
These records must include the hours worked, rate of pay, and gross and net wages. Any deductions or allowances must be itemized.
Employee Rights Under the WTPA
You have a right to receive a correct paycheck on the proper payday. You also have a right to receive a wage notice when you begin a job and timely notification of any changes.
If you feel an employer is committing wage theft, you have a right to report it. The WTPA protects you from retaliation. Employers may not fire, penalize, or discriminate against employees who have made wage complaints. They are also not allowed to threaten you with retribution, even if your employer feels you are mistaken in filing a complaint.
New York takes employee rights seriously. If the Department of Labor finds that your employer has retaliated against you, they can face criminal charges.
Penalties for Non-Compliance
Employers found to have committed a wage theft violation must pay back the wages owed or face an Order to Comply from the Commissioner of the Department of Labor. After the Order to Comply is issued, the employer may also be liable for interest, other civil penalties, and additional damages.
Wage theft cases can also be referred for prosecution. If the amount stolen is over $1,000, the case may constitute grand larceny, a Class E felony with a maximum sentence of four years imprisonment.
What To Do if You're a Victim of Wage Theft in New York
The New York Department of Labor accepts wage theft claims via mail or online upload. To complete your claim form, you’ll need information about your employer, your pay scale, and the pay they owe you.
After the DOL has received the claim form, they will determine whether you’re eligible to file a claim. You are not eligible to file if the work was performed outside of New York, if you’ve already filed a case in small claims court about the missing pay, or if the missing pay is from more than three years ago. You are also not eligible to file a claim if you worked as an executive, administrative, or professional employee and earned over $1,300 per week.
A lawyer can help you determine eligibility and choose the best course for recovering your stolen wages.
If the DOL accepts your claim, you’ll receive a case number and periodic updates. The investigator will talk to your employer and may visit your workplace. If the DOL determines a violation was committed, your employer must pay any wages owed and may face other consequences.
Recent Updates
Lawmakers have amended the WTPA over the last few years. First, employees who make $1,300 a week or less are now eligible to file a wage theft complaint with the Department of Labor. The previous threshold was $900 per week.
As of September 15, 2023, employers must obtain written consent before using direct deposit to pay employees who make $1,300 a week or less. The threshold had previously been $900 a week.
As of September 2023, Wage theft is now included under the legal definition of larceny.
Contact Joseph & Norinsberg for Your Employment Law Cases
Wage theft can leave you feeling vulnerable, but you have the right to the pay you’ve earned for the work you’ve done. Joseph & Norinsberg can help you stand up to unfair employers and get your rightfully earned wages.
Contact us online or call 212-227-5700 today for a free consultation.
