Wage theft is a widespread issue in New York, affecting workers in restaurants, construction, retail, and other industries.
It happens when employers fail to pay legally earned wages, either through unpaid overtime, underreported hours, or illegal deductions. Many workers may not even realize it’s happening or if they do, may fear retaliation about speaking up.
The Wage Theft Prevention Act (WTPA), which gives protection to workers in New York state, took effect on April 9, 2011. All private-sector employers are covered. Federal, state, and local government employers are not covered, but it is important to note that charter schools, private schools, and not-for-profit corporations are covered, as they are not public entities.
Wage theft occurs when an employer fails to pay workers what they are owed under the law. That includes unpaid minimum wage or overtime, unlawful paycheck deductions, and misclassifying employees to avoid labor protections.
Under New York state law, employers must pay the correct rate of pay, provide written notices, and issue accurate wage statements. As of 2023, wage theft is classified as larceny under state criminal law, a serious offense that can lead to civil or criminal penalties.
Wage theft in New York takes many forms, but all involve an employer failing to pay what’s legally owed. Some violations are blatant, while others are harder to detect. Here are a few of the most common:
• Unpaid overtime
Most hourly workers must...
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