Wage Violations & Remedies In New York Law
Happily for workers (and perhaps, unhappily for some employers), New York has some of the strictest labor laws in the United States. While even large companies may make errors or overlook things, the New York legislature has enumerated clear penalties for corporations that act inappropriately, especially in the realm of wage and hour violations. If you suspect that you may not be receiving the pay or benefits you are owed, consulting an attorney can help clarify your options.
Potential Criminal Penalties For Employers
Perhaps the most commonly utilized law in suits for wage theft (or general failure to pay wages) is New York Labor Law 198(a)(1) – not only does the law allow for total repayment if an employer is found to have underpaid, but it also allows for liquidated damages to be paid to the employee (up to another 100 percent of the owed amount). Further liquidated damages may be available if the underpayment was willful.
Where New York is somewhat unique is NYLL 198A, which actually establishes criminal penalties for employers (their “officers and agents”) if they knowingly fail to pay employees their wages. The first offense is a misdemeanor, punishable by up to 1 year and 1 day in jail, and a second offense within 6 years of the first is a felony. Fines can run anywhere between $500 and $20,000, depending on the scope of the wage theft.
Even Shareholders Are Not Immune
New York law not only holds employers potentially liable for failure to pay wages (or wage theft), but in rare cases, may actually hold the largest shareholders personally liable for payment of back wages if they are not otherwise forthcoming and the violation was intentional. Obviously, no corporation wishes to proceed to this point, as the backlash would be swift – but the legal grounds for doing so are on the books and can be enforced.
The only situation enumerated where an employer (or their shareholders) might be immunized from having to pay all wages is in bankruptcy – New York courts will not impose additional debt on a corporation that lacks the funds to make good on the debt. However, this is vanishingly rare, and for the employee who believes they have been denied what they are due, this risk should not stop them from seeking compensation.
Call A New York Wage Violation Attorney
While most employers pay their workers appropriately, there will always be some who make mistakes, and some that willfully try to take advantage of their employees. If you suspect that you have been the victim of a wage and hour violation, calling a New York City frequent wage violation attorney from Mansell Law, LLC may help you to decide where to go from here. Contact our office today at (646) 921-8900 for a free consultation.
Source:
newyork.public.law/laws/n.y._labor_law_section_198
