Updated on August 28, 2024: This blog post has been updated to provide enhanced information and insights.
The Fair Labor Standards Act (FLSA) is a federal law that requires employers to pay the federal minimum wage, which is currently $7.25 per hour. The New York Labor Law is a state law that requires employers to pay a state minimum wage, which is currently $15 per hour. In New York City, Long Island County, and Westchester County, the current 2024 Minimum Wage is $16.00 per hour.
Because New York’s minimum wage is higher than the federal minimum wage, employers within the state must pay their employees the higher rate. If an employer does not pay an employee their minimum wage, they are breaking the law and could face serious consequences. In this article, we will discuss how an employer can get in trouble for not paying wages in New York State, and we will also outline different implications of not paying salaries in New York.
What is a Minimum Wage?
Minimum wage is the amount an employee can be paid for their work during a specific period in a given state, region, city, or industry. An employer can’t reduce the hourly minimum wage through any form of contractual agreement with a group or individual. In other words, an employer can’t ask their employee to sign a document saying that the employee is willing to accept payment that is lower than the state’s minimum wage. Legally, an employer is obligated to comply with minimum wage laws or face either civil or criminal penalties. Employees who have worked for a lower than minimum wage have the right to seek compensation.
The minimum wage laws in New York State are set to protect the interests of workers and make sure they don’t receive an unduly low wage. After all, employees deserve fair pay and the opportunity to thrive in the success of the companies they work for. Minimum wage laws help to ensure that it’s not just the business owners who get to enjoy a better quality of life as a result of their profitable business. Minimum wage laws are there to prevent poverty development and to reduce problems related to inequality for both men and women.
The New York Labor law requires that all employees receive no less than $15 per hour. However, in New York State, the minimum wage rates differ depending on a couple of factors, including the region where the business is located and the type of industry.
The minimum wage is enforceable by the New York State Department of Labor, which provides assistance to employees who have not been paid their earned minimum wages. The salaries can often be collected from employers without having to go to court, however, the employers who violate the Labor Law can face civil penalties and criminal prosecution for the underpayment of their employees.
New York State employers who fail to pay their employees the minimum wage may be required to pay the following:
- Unpaid wages;
- Interest; and
- Civil penalties (liquidated damages) up to 200% of the unpaid wages.
Who Enforces the Fair Labor Standards Act?
The U.S. Department of Labor’s Wage and Hour Division is responsible for enforcing the FLSA. Meanwhile, the NY Department of Labor is responsible for enforcing the New York Labor Law. In either case, enforcement is performed by authorized representatives (investigators), who conduct investigations and gather information on wages, hours worked, and other practices and conditions of employment to determine compliance with the law. If investigators discover violations of the employment laws, they may recommend changes in business practices to bring an employer into compliance.
The Wage and Hour Division may conduct their investigations for a number of reasons. Most of the investigations are typically initiated by employee complaints. It goes without saying that all complaints are confidential, with the only exception when it is necessary to reveal the identity of the complainant, with their permission, to pursue the complaint. The Wage and Hour investigators may also select certain types of businesses or industries for their investigations, with a goal to ensure compliance with the law in those businesses and industries.
The Wage and Hour Department’s investigation consists of the following steps:
- A meeting between the Wage and Hour investigator and the business representative, during which the Wage and Hour investigator will explain the investigation process;
- Examination of business records to determine what laws or exemptions apply to the business and its employees;
- Examination of time and payroll records, taking notes and information vital to the investigation;
- Interviews with certain employees, done in private in order to verify the time and payroll documents, to identify employee’s duties in enough detail to determine what exemptions apply and to determine if workers, especially young ones, are legally employed;
- Announcing whether violations have occurred and, if so, what they are and how to correct them. If wages are owed, the employer has to pay back the wages.
What are the Consequences if an Employer Doesn’t Pay the Wages?
There are several methods with which the FLSA ensures an employer will pay all of the unpaid minimum and/or overtime wages:
- Wage and Hour Department may supervise payment of owed wages;
- The Secretary of Labor may bring a suit against the employer for back wages and also demand an equal amount to be paid as liquidated damages;
- An employee may file a private lawsuit for unpaid wages and an equal amount as liquidated damages, plus their lawyer’s fees and court costs; and
- The Secretary of Labor may obtain a court order to restrain an employer from violating the FLSA, including the unlawful withholding of minimum wage and overtime pay.
Typically, a two-year statute of limitations applies to the recovery of unpaid wages, except in the event of a willful violation, in which case a three-year statute applies. In other words, unless the violation was willful, unpaid wages may only be recovered within two years of when they occurred.
New York State’s employers who willfully or repeatedly violate the minimum wage or overtime pay requirements will become subject to a civil money penalty of up to $1000 for every violation. However, willful violations of the FLSA can result in criminal prosecution, and the employer can be fined up to $10,000. If they make the same violation again, they may face imprisonment.
Suppose an employer makes false statements about whether employees are exempt from overtime pay requirements (which can include paying less than minimum wage). In that case, he/she may be fined up to $16,000 or imprisoned for as many as 16 months.
However, these are not only penalties that exist. For instance, the FLSA prohibits the shipment or offer for shipment or interstate sale of any products produced during the violation of the minimum wage laws, child labor, or special minimum wage provisions. If an employer doesn’t voluntarily correct these violations, the Wage and Hour Department may not allow the shipment of the goods.
An employer can also face penalties for not informing their employees about the minimum wage increase. Every employer must notify employees about any kind of changes in the minimum wage. They need to inform them through a meeting or in an email and hang a poster to inform workers of the official change.
Some employees working in the service and hospitality industry are entitled to an extra hour of pay at the minimum hourly rate in the case that their workday spends more than ten hours. This is known as the ‘Spread of Hours rule’ and includes time spent off-duty, such as rest periods, meals, etc. If an employer violates this rule, he may face penalties.
The same applies to misclassifying employees. If an employer willfully or does not misclassify a non-exempt employee as exempt in order to reduce their taxes and payroll costs, they are violating the law and will face penalties.
How Can an Employment Lawyer Help If You Are Being Paid Less Than the Legal Minimum Wage?
Getting paid less than the legal minimum wage is not just unfair; it’s illegal. Whether you’re a full-time employee, part-time worker, or even an undocumented worker, laws are in place to safeguard your right to fair compensation.
Understanding Your Rights
An employment lawyer specializes in understanding the intricate labor laws that protect workers. They can help you:
- Clarify Legal Rights: Explain the minimum wage laws applicable in your jurisdiction.
- Assess Your Situation: Determine if you’re indeed being underpaid based on your employment terms and local labor laws.
Navigating the Legal System
The legal process can be overwhelming, especially when you’re up against an employer. An experienced lawyer can:
- Guide You: Walk you through the complexities of the legal process.
- File Complaints: Help you file a formal complaint with the appropriate authorities.
- Collect Evidence: Assist in gathering necessary documents and evidence to build a strong case.
Maximizing Compensation
Beyond just recovering unpaid wages, an employment lawyer can help you secure additional compensation such as:
- Penalties and Interest: Demand penalties for the delay in your rightful wages.
- Legal Fees: Ensure your employer covers the legal costs associated with your claim.
Providing Peace of Mind
Lastly, having a reputable lawyer by your side ensures that you have an advocate fighting for your rights, leaving you with peace of mind to focus on your personal and professional life.
If you believe you’re being underpaid, seeking legal help can make a significant difference. Don’t hesitate to contact an experienced employment lawyer who can help you navigate the legal landscape and reclaim what you’re owed.
What Additional Compensation Can You Receive if Your Wage and Hour Lawsuit is Successful?
Successfully winning a wage and hour lawsuit can provide more than just the back pay you’re owed. Here’s what you might be entitled to:
- Additional Damages: Beyond recovering your unpaid wages, you might also be awarded compensatory damages. These are meant to cover any financial losses you experienced because of the employer’s illegal actions.
- Penalties: Employers who violate wage and hour laws can face hefty fines. Some of these penalties can be awarded directly to you as a form of additional compensation.
- Attorney’s Fees: Legal battles can be expensive. Fortunately, if your lawsuit is successful, you may be able to recover the costs associated with hiring an attorney. This ensures you’re not left out of pocket after seeking justice.
- Court Costs: Filing fees, document fees, and other court-related expenses can add up. A successful lawsuit can also cover these costs.
These compensations can significantly add to the amount you recover, making it worthwhile to pursue your legal rights.
How to Contact an Employment Attorney for Unpaid Minimum Wage Issues
If you suspect that you’re earning less than the legal minimum wage, it’s crucial to take immediate action. Here’s a step-by-step guide to help you reach out to an experienced employment attorney:
- Research Local Employment Attorneys: Begin by searching for employment attorneys in your area. Cilenti & Cooper, PLLC is the leading wage firm in the New York metropolitan area. Since 2009, Cilenti & Cooper, PLLC has helped thousands of individuals recover millions of dollars in unpaid wages and overtime compensation.
- Schedule a Consultation: Once you’ve shortlisted potential attorneys, schedule consultations. Many law firms offer free initial consultations, allowing you to discuss your case without any financial commitment.
- Prepare Your Documentation: Gather all relevant documents before your meeting. This includes pay stubs, employment contracts, and any correspondence with your employer.
- Ask the Right Questions: During the consultation, ask about the attorney’s experience with wage disputes, their success rate, and the anticipated timeline for your case.
- Discuss Fees and Payment Structures: Ensure you understand the fee structure. Some attorneys work on a contingency basis, meaning they only get paid if you win your case.
- Follow Up: After choosing an attorney, maintain open communication. Regularly follow up to stay informed about the progress of your case.
Conclusion
If an employer does not pay you the correct salary in New York State, they could be held responsible for breaking federal and state laws. Our lawyers have been fighting for the rights of workers for decades, guiding them through wage and hour and overtime claims and other forms of legal action against their employers. To find out whether you have a case worth pursuing, feel free to contact Cilenti & Cooper today.