STATEN ISLAND, N.Y. -- The New York State Department of Labor (NYSDOL) announced on Wednesday its latest success story as part of its mission to ensure workers are paid their due.
The agency recovered more than $191,000 in unpaid wages for 93 employees at Magellan Technology/Demand Vape, a Buffalo-based company.
A complaint from a competitor prompted an investigation by NYSDOL’s Division of Labor Standards.
The agency found that the 93 employees were shorted under New York State’s spread of hours law for service workers.
Typically, an underpayment occurs when minimum wage workers work more than 10 hours and there is a break longer than four hours between shifts. Employers are required to pay one additional hour per day at minimum wage when an employee’s spread of hours exceeds 10 hours, or the employee workers a split shift. Any amount over the hourly minimum wage can be used to offset this requirement.
According to the Labor Department, Magellan Technology/Demand Vape was unaware of the split shift and spread of hours provision in the state’s Miscellaneous Wage Order. Upon learning of the policy, the company conducted a self audit, at the request of the Division of Labor.
Magellan Technology/Demand Vape concluded it had shorted employees between Jan. 1, 2019 and April 4, 2022. It paid all eligible and former employees on Aug. 8, 2022.
This recovery is part of NYSDOL’s ongoing wage theft recovery efforts.
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