What Is the New York Wage Theft Prevention Act?

Employment Law News | September 7, 2022

Every year, wage theft causes workers to lose billions of dollars of wages that they are entitled to receive. To protect workers from the unlawful theft of income, the state of New York passed the Wage Theft Prevention Act (WTPA).

This important law requires that employers provide their workers with written notices of their wages. It also entitles employees to back pay, penalties, and damages when they file a claim for wage theft. If you believe that your employer is stealing your wages, it is important to consult with a New York wage and hour attorney about your legal options.

Employers Must Provide Wage Notices to New Employees

Under the WTPA, an employer must provide written notice to each new employee about their wage rates. These notices must be received within ten business days from the employee’s first day of work. The employer must provide this notice in English and the worker’s primary language, if a translation is available.

The wage notice must include the following information:

  • The rate of the employee’s pay
  • The rate of the employee’s overtime pay, if applicable
  • The date of the employee’s regular payday
  • Information on whether the employee is paid hourly, daily, weekly, or by shift or commission
  • The employer’s official business name and other names that are used to perform business
  • The employer’s principal phone number and address
  • Any meal, tip, or lodging deductions that are taken from the paycheck as part of the minimum wage

Employers Must Supply Wage Statements on Payday

Additionally, New York employers are required to give each employee a wage statement or paystubs on the day that they are paid. If an employee requests a written explanation of his or her wages, the employer must provide one. These payday notices must include the following information:

  • The name, address, and phone number of the employer
  • The dates that are covered in the pay period
  • The regular and overtime hours that the employee worked
  • The rate of pay for both regular and overtime hours
  • An indication of whether the employee is paid weekly, hourly, daily, or by another method
  • The net and gross wages for the pay period
  • An itemized list of credits and allowances that the employer claims per pay period

What Happens If an Employer Violates the Wage Theft Protection Act?

If employers fail to provide the required wage notices to their employees, they could face significant penalties in the form of damages. Under the WTPA, employers must pay up to $250 per day per employee if they do not meet these requirements. However, they could avoid these penalties by proving that they paid their employees the correct wages as required under the law.

In the event that an employer did not pay its employees their fair wages, the company could face even higher penalties. Employees are entitled to 100% of their unpaid wages. Additionally, the employer could also face civil penalties, interest, and damages on top of the employee’s back pay. These penalties can be very expensive.

What to Do If You Suspect Wage Theft

As an employee in the state of New York, you are entitled to the full value of your wages. If you suspect that your employer is stealing your labor, you deserve justice. In these situations, it is important to consult with an attorney.

A lawyer can represent your claim against your employer and help you recover the compensation that you deserve. Contact a New York wage and hour attorney to discuss your legal options