Wage Firm — The Ultimate Guide To Recovering Unpaid Wages In New York
Did you know that every day, thousands of people are not paid for the work theydo? This is a big problem, and it needs to be urgently addressed. In the Stateof New York, there are many laws to protect employees from this happening, butthere’s no guarantee that employers will follow them. In this ultimate guide,we’re going to discuss how you can recover unpaid wages in New York. We’ll also talk about your rights as an employee and what you should do if youremployer doesn’t pay you for the work done. We will also talk about how long itusually takes to get unpaid wages back and why this is a problem in New YorkState. Finally, we’ll discuss some steps on where to find help if you’resuffering from problems caused by unpaid wages.
What Constitutes Unpaid Wages In New York State?F
irst, we need to talk about what constitutes unpaid wages and what the law saysis owed to workers in New York State. What qualifies as unpaid wages is anysalary or pay promised by an employer but not paid when it should have been.Also, if you are owed back wages for overtime hours worked and didn’t receivethem, this would also qualify as an unpaid wage. If you are owed commissions andbonuses, this would also be eligible for the unpaid wage category if they werenot paid, unless the employer has a written agreement with an employee thatstates otherwise, or there is an established industry practice to do so.If an employee was fired without notice, they should be paid their finalpaycheck; otherwise, this also constitutes an unpaid wage. Employees are alsoentitled to unpaid wages if their employer decides not to pay for hours workedbefore the end date, and these are counted in their regular work schedule.Finally, if there is a written agreement between an employer and employeestating otherwise, payment for unused vacation time should also fall into thecategory of unpaid wages.The New York Wage Theft Prevention Actrequires thatemployees are given written notice of salary rates at the time of hire and atleast one pay period notice before changes in wages are made.Employers are required to pay hourly wages, salaries, commissions, overtimewages, and bonuses under New York State law. They cannot require employees toaccept less than minimum wage as a condition of employment. Employees must becompensated for work at the agreed-upon rate and time or duration of work,whichever is greater. WHAT CONSTITUTES UNPAID WAGE SUPPLEMENTS THAT CAN BE CLAIMED?Unpaid wage supplements refer to additional compensations that your employeragreed to provide but failed to do so. These supplements typically include:
• Vacation Pay: This is the pay for time off that was accrued according to company policy or your employment agreement.
• Holiday Pay: Compensation for official holidays, as outlined in your employment contract or company handbook.
• Bonuses: Any promised financial rewards based on performance, company profits, or meeting certain milestones.WHEN CAN YOU CLAIM THESE WAGE SUPPLEMENTS?You are eligible to claim unpaid wage supplements if your employer committed toproviding them, either verbally or in writing. This commitment can come from:
• Employment contracts
• Emails or written communication
• Official policy documentsSITUATIONS WHERE CLAIMS ARE NOT VALIDIf your employer never assured these wage supplements, they are generally notobligated by law to offer them. Always refer to your employment agreement andcompany policies for clarity.Note: It’s crucial to keep records of any agreements or promises regarding wagesupplements. Documentation will support your claim if disputes arise.WAGE THEFT PREVENTION ACT EXPLAINEDNew York law provides employees with the right to pursue their unpaid wages incourt. This is done through the Wage Theft Act. Under this Act, employers arerequired to provide written wage notices and pay stubs or face penalties as highas ten thousand dollars. In most cases, employers are unaware of this and can bewilling to make payments voluntarily if they understand their legal obligationsunder New York Law.The Wage Theft Prevention Act (WTPA) protects New York workers from wage theftby doing one or more of the following:
• Preventing employers from intentionally stealing wages;
• Providing employers with notice of employment terms and conditions, including any method or rate to be paid for work performed by an employee;
• Prohibiting any employer from making such deductions which would reduce the worker’s pay below minimum wage;
• Allowing workers to recover unpaid wages in court;
• Preventing employers from interfering with the employee’s right to get back their unpaid wages in court;
• Requiring that an employer provide a written employment agreement before paying any salary or wage for performed work;
• Creates criminal penalties and fines against employers who violate these provisions.As mentioned, if an employer fails to provide written notice of an employee’swage or overtime rate, the scheduled payday, or information about the employer,they will have to face high-sum penalties. The Wage Theft Act also requiresnotices to be in English and the employee’s native language.For every day the employee’s written pay notice is not provided to the employee,the employer has to pay $50. However, the penalty for this situation can go upto $5000 per employee. There is also a penalty if the employer fails to providea pay stub to the employee, which can also be up to $5000 per employee. The Actalso punishes employers with repeated offenses with penalties of up to $20,000for those employers with violations in the last six years. Additionally, the Acthas protections for wage theft informants.IS THERE A STATUTE OF LIMITATIONS FOR FILING AN UNPAID WAGE CLAIM IN NEW YORK?The employees should be aware that there is a statute of limitations forrecovering unpaid wages in New York State. An employee has two years to bringlegal action against their employer for unpaid minimum wages and unpaid overtimecompensation. In total, an employee has a six-year statute of limitations forany legal actions for recovering their wages, benefits, and wage supplements inNew York.THE IMPORTANCE OF RECOVERING UNPAID WAGES IN NEW YORKThe New York State and its Self-Employed Department collect taxes from allself-employed individuals for Social Security tax and Medicare. However, they donot collect unemployment insurance contributions from self-employed people. Suchpersons are responsible for paying these taxes themselves; otherwise, they willbe collected from their unpaid wages.That is why they must recover their unpaid wages because aside from not havingtheir well-earned money, they risk going to jail or facing other penalties forfailing to pay federal and state taxes withheld from their paychecks. They canbe charged with a felony or jail time of up to three years, or both.Employees should also know that they can recover unpaid wages and other damageseven if they don’t have a work permit or a green card, or if they don’t havecopies of the received paychecks, if they were paid in cash, or forced to paykickbacks to stay on their jobs. They can even recover wages if the employerclosed the business or declared bankruptcy.WHAT CAN YOU DO TO RECOVER YOUR UNPAID WAGES IN NEW YORK?Even nowadays, people are unaware they have the right to bring their unpaid wageclaims before a judge and jury. According to the National Employment Law Project(NELP), it is estimated that 98% of workers (over 4.5 million of them) willnever file a claimat all to recover their stolen wages. So, if an employee wants to pursue theirunpaid wages, it isessential they know the different legal options available and what will work forthem.The first thing an employee should consider is to discuss the issue with theiremployer and try to settle the matter directly. Giving them a chance to fix thesituation before it escalates into legal action is always a good option.However, if the employer refuses to acknowledge their mistake, and the employeestill hasn’t received their unpaid wages, it is time to consider other options.CATEGORIES OF CLAIMSUNPAID WAGESTo file a claim, an employee will need to complete a form to claim unpaid wages,wage supplements, minimum wage/overtime, and various non-wage items if theirsituation meets the criteria below.Unpaid Wages:
• Your employer did not pay you for all hours worked (including on-the-job training).
• Your paycheck bounced due to “not sufficient funds” (NSF).
• You did not receive all of your tips.
• Your rate of pay was lowered without prior notice.Unpaid Wage SupplementsYour employer promised you (verbally or in writing), but did not provide earned:
• Vacation Pay
• Holiday Pay
• BonusesIf your employer never promised to pay wage supplements, your employer is notrequired by law to pay them.Minimum Wage/Overtime
• Your employer paid you less than the current minimum wage.
• Your employer did not pay an overtime rate for hours worked over 40 in one week. (Most employees must be paid time and one-half their rate of pay for more than 40 hours worked, but there are some exceptions.)Non-Wage ItemsYour employer failed to provide the required meal period, day of rest, pay stub,notice of pay, timely payment of wages, or took a negative action against youfor making a complaint related to the Labor Law.FILING A LEGAL ACTIONIf the issue isn’t resolved directly with the employer, the next step is to filea legal action. An experienced team of professional lawyers can help employeesassess their cases and develop the best strategy for recovering their unpaidwages. As mentioned, every employee has the right to be paid the minimum wageand 1.5 times their regular pay rate for overtime. Depending on the county, theminimum wage ranges from $11.80 to $15, which is substantially higher than thefederal minimum wage of $7.25. If an employer refuses to pay wages, they violatethe Minimum Wage Law and are subject to criminal prosecution and penalties.Since the process of filing an unpaid wage claim and going to court involvesnumerous nuances that an employee may not fully understand, the best thing is tohave the guidance and support of a professional.WORKING WITH A LAWYER IN AN UNPAID WAGES CASEOnce an employee has hired a lawyer to represent them, they will have to explaintheir situation in detail. The lawyer must know everything about their jobduties, work policies, work schedule, and the amount of pay they have receivedto determine how to pursue their unpaid wage claim. The more documents anemployee has that prove their employer has intentionally failed to pay theirwages, violating the FLSA, the higher the chance to build a strong case againsttheir employer.After the claim has been filed in court, an employer has to answer it. However,if he fails to do so, the court may rule in the employee’s favor. Aside fromindividual lawsuits, unpaid wage claims can also be brought to court ascollective actions and arbitration proceedings. After filing the claim, anemployee and employer have to comply with specific court rules regardingdiscovery. This includes producing necessary documents by both sides, such asstatements and evidence. An employee will have to provide documents from theirplace of employment, such as work schedules and pay stubs, and provide estimatesand information regarding the wages they claim are unpaid.In most cases, these claims eventually settle, as unpaid wage lawyers negotiatea settlement amount. However, if they don’t reach a settlement, the case will goto trial. There, the judge and jury will be presented with the evidence and hearwitnesses’ testimony. If an employee wins the trial, their employer will have topay what they owe, including penalties.WHAT CRITERIA MUST BE MET TO FILE A CLAIM FOR UNPAID WAGES?To file a claim for unpaid wages, there are specific criteria your situationmust meet. The criteria include the following:
• Unpaid Work Hours: If your employer has not compensated you for all the hours you have worked, including any required on-the-job training, you may have grounds for a claim.
• Bounced Paychecks: You can file if your paycheck has bounced due to insufficient funds, leaving you without the pay you earned.
• Unreceived Tips: If you did not receive all of the tips owed to you, this can also be included in your claim.
• Unauthorised Pay Reduction: If your employer reduced your rate of pay without giving you prior notice, you are eligible to file a claim.Make sure your situation aligns with these conditions to ensure your claim isvalid and can be processed.REQUIRED FORMS FOR FILING A CLAIM FOR UNPAID WAGES OR WAGE SUPPLEMENTSTo file a claim for unpaid wages, wage supplements, or related issues, you’llneed to complete specific forms based on your situation. Here are the essentialforms you might need: 1. General Labor Standards Complaint Form (LS223) This form is used to claim unpaid wages, wage supplements, minimum wage, overtime, and other non-wage items. It’s available in multiple languages including:
• English
• Albanian
• Arabic
• Bengali
• Chinese
• French
• Greek
• Haitian-Creole
• Hindi
• Italian
• Japanese
• Korean
• Polish
• Russian
• Spanish
• Urdu
• Yiddish2. Instructions for Filing a Claim (LS223.2)Detailed instructions for completing the LS223 form are available to guide youthrough the process. These instructions are also offered in various languages aslisted above to ensure clarity and understanding.3. Labor Standards Farm Workers’ Complaint Form (LS710)If you are a farm worker, use this form to file claims for unpaid wages, illegaldeductions, wage supplements, minimum wage, overtime, lack of meal periods, orno days of rest. 2. 4. Letter of Representation – Complainant Representative (LS11)This form should be submitted if you have a representative assisting with yourclaim. It is necessary to include this with the LS223, LS710, or other relevantforms whenever a representative is involved in your Labor Standards matter.Available in: 4.
• English
• SpanishFiling Process Overview
• Choose the right form based on your work type (general worker or farm worker) and claim type.
• Download the applicable instructions to ensure proper completion of the form.
• Submit the Letter of Representation if you have a legal or designated representative.
• Make sure to fill out the forms accurately and submit them as instructed to avoid delays in processing your claim.PROTECTION FROM RETALIATIONSeeking legal action against an employer is not an easy thing to do. It can benerve-wracking because of the fear of retaliation. Retaliation happens when anemployer takes adverse action to punish the employee for making the initialreport, for cooperating with the Department of Labor, or for anything else thatcan result in the employer paying penalties for their unlawful behavior.An employer can try to retaliate in several ways:
• Disciplinary action;
• Reduced Pay;
• Demotion;
• Transfer;
• Reduced work hours;
• The demand for increased production;
• Threatening to deport an employee;
• Threatening to sue an employee;
• Threatening to subject an employee to criminals;
• Firing an employee.However, an employee should not have to worry because the law protects them. Ifanything happens, they have the right to additional monetary damages. The onlything an employee should worry about is filing their claim on time. According tothe law, they can recover up to six years of unpaid wages, but if they’ve workedfor more than this period, every passing day is one day less than they canrecover.WHO PAYS AN ATTORNEY HIRED TO RECOVER UNPAID WAGES?Most lawyers who work on unpaid wages issues in New York state operate on aso-called contingency fee basis. Acontingency fee arrangement is an arrangement between a lawyer and a clientwhich exists exclusively for this reason.A lawyer works for a percentage of a settlement, verdict, or jury award in acontingency fee arrangement. They get paid only if their client recovers theirunpaid wages. In this kind of arrangement, there is no upfront charge for thelawyer’s services. An employee never pays their lawyer directly. The lawyer’spay comes out of the compensation they recover on their client’s behalf. Anothergood thing about a contingency fee arrangement is that no recovery damages meanno legal fees.Professional legal representation can be pricey. That is why contingency feearrangements are so helpful because people who may not afford such service canstill pursue their unpaid wage claims. The agreement allows employees to hirelawyers without worrying about legal bills on top of their other expenses.The contingency fee arrangement also enables employees to evaluate their claimsat no cost by a professional lawyer. This is also an expensive service since ittakes time, experience, and effort on the lawyer’s part to understand theirclients’ cases fully.The amount of a contingency fee can depend on a couple of factors:1. Lawyer’s time and effort: A lawyer’s amount of time and effort invested intoa claim may affect the contingency fee since they can’t predict how complex thecase will be and how much time they will have to spend on it.2. Settlement and trial: Most unpaid wage claims are settled before the trial.This is the quickest and most cost-effective end to the lawsuit. However, if itgoes to trial, the preparation and research which the lawyer will have toundertake can influence the cost of a contingency fee.CONCLUSIONThis ultimate guide to recovering unpaid wages in New York is designed foranyone denied their fair pay. Unpaid wages and wage theft creates problems for both New York employers andemployees. As an employee, it is vital to learn as much as you can about stateand federal laws regarding unpaid wages. Thanks to experienced and knowledgeablelawyers, you can make this process easier for you.A good legal representative can be there to inform you of the wage and hourlaws, to tell you what your options are, help you gather documentation,represent you at the court of law, and support you through your fight for theright to be paid for your work.To find out whether you have a case worth pursuing, feel free to contact Cilenti& Cooper today.