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.

What Is Wage Theft?

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.

Common Forms of Wage Theft in New York

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 receive 1.5 times their hourly rate for any time worked over 40 hours in a week. Employers commit wage theft when they ignore this rule, misclassify workers to avoid paying overtime, or expect unpaid “off-the-clock” work.

Failure to pay minimum wage
In 2025, minimum wage in New York City, Nassau, Suffolk and Westchester counties is $16.50 an hour,  with $15.50 an hour throughout the rest of the state.

Tipped workers must also receive enough in base wages and tips to meet this threshold. Paying less, or failing to supplement low tips, is a violation of the labor law.

Illegal deductions and withheld pay
Deductions for uniforms, breakage, or shortages are generally illegal. So is withholding vacation pay, bonuses, or a final paycheck.

Misclassification as independent contractors
Employers sometimes label workers as independent contractors to avoid wage laws. If your job functions like regular employment (with set hours, tasks, and oversight) you may be misclassified and entitled to back pay.

Tip theft
In service jobs, withholding tips or misusing tip pools are both common forms of wage theft.

Industries Where Wage Theft Is Most Prevalent

Wage theft happens across all job sectors, but it is especially common in industries where oversight is limited and wage violations are harder to detect:

• Food service: Tip theft, unpaid training, off-the-clock work, and flat shift pay that ignores hours worked.
• Construction: Misclassification as contractors, cash payments, and unpaid travel or overtime hours.
• Retail & janitorial work: Inaccurate paychecks, missed breaks, and unpaid overtime tied to unpredictable scheduling.
• Domestic & home care: Flat daily rates with no overtime, under-the-table pay, and no written notice of wages.
• Warehousing & delivery: Pay tied to output instead of hours, misclassification, and lack of reimbursement for expenses.

In these sectors, many workers hesitate to report violations due to job insecurity, making enforcement and legal help even more important.

Your Rights Under New York Labor Law

State and local labor laws offer strong protections for workers in New York. You have the right to be paid at least the state minimum wage, to receive overtime pay for hours worked over 40 in a week, and to get accurate wage statements with each paycheck.

You are also protected from retaliation for filing a complaint or asking about your wages. Under the Wage Theft Prevention Act, employers who violate these rules may face fines, back pay orders, or even criminal charges.

How to Recognize If You’re a Victim of Wage Theft

If your paycheck does not match the hours you have worked, or your overtime is not paid at time-and-a-half, you may be a victim of wage theft. Other signs include sudden changes in your pay rate without written notice, missing or unclear pay stubs, or promised bonuses or vacation time that never materialize.

New York statutes require employers to provide written notice of your rate of pay and detailed wage statements. If those are missing, or your employer penalizes you for raising concerns, it could signal a legal violation.

Trust your instincts: if something feels off, it’s worth looking into.

Steps to Take If You Suspect Wage Theft

If you think your employer has not paid you correctly, take these steps to protect your rights and strengthen your case:

1. Document everything: Keep records of hours worked, pay stubs, emails, texts, and any notes about missed pay or rate changes.
2. Request clarification: Ask your employer, in writing if possible, for an explanation of any missing or incorrect wages.
3. Check state guidelines: Review New York State Department of Labor’s (NYSDOL) Wage Theft Hub for resources on wage theft and unpaid wages to see if your situation qualifies.
4. File a complaint: Submit a wage theft complaint with the New York State Department of Labor. You can also report violations related to unpaid overtime or wage supplements.
5. Speak with an attorney: An employment lawyer can assess your claim, communicate with your employer, and help recover unpaid wages through legal action if needed.

Act quickly: in most cases, wage claims must be filed within three years of a suspected incident.

Employer Requirements Under New York Labor Law

According to NYSDOL, the Wage Theft Prevention Act requires employers to give written notice of wage rates to each new hire. Employers also must provide a wage statement or pay stub each pay day.

Employers that do not give wage statements may have to pay damages of up to $250 per day, per employee, unless they paid employees all wages required by law. (This stops at $5,000 per employee in civil lawsuits filed by employees.)

The written notice of wage rates must include:

• rate or rates of pay, including overtime rate of pay (if it applies);
• how the employee is paid: by the hour, shift, day, week, commission, etc.;
• regular payday;
• official name of the employer and any other names used for business (DBA);
• address and phone number of the employer’s main office or principal location; and
• allowances taken as part of the minimum wage (tips, meals, and lodging deductions).

The notice must be given both in English and in the employee’s primary language (if the Labor Department offers a translation). The Department currently offers translations in the following languages: Spanish, Chinese, Haitian Creole, Korean, Polish, and Russian.

Wage theft is also a violation of the federal Fair Labor Standards Act of 1938. And, according to NYSDOL, wage theft is considered larceny under New York State Penal Law section 155. Failure to pay wages may result in referral to a local district attorney for consideration for criminal prosecution. The New York State Fiscal Year 2026 budget grants NYSDOL additional enforcement powers to collect lost wages when an employer has violated wage payment provisions. Further, NYSDOL may levy liens, seize financial assets, and issue stop-work orders following an unpaid wage theft judgment.

How an Employment Lawyer Can Help

A Tully Rinckey employment lawyer can review your pay records, identify wage law violations, and help you file a wage theft claim. If needed, they can negotiate a settlement or take legal action to recover unpaid wages, overtime, or other compensation. They also protect you from retaliation and guide you through the entire process.

Contact Us Today for Legal Guidance

If you believe you’ve been a victim of wage theft in New York, contact our office to speak with an employment attorney. We’ll help you understand your rights and pursue the wages you’re legally owed.

A knowledgeable employment attorney can help you gain an understanding of the unique difficulties each workplace conflict presents and work toward a solution that benefits you. Tully Rinckey attorneys have the experience to assist both employees and employers in achieving their objectives, regardless of the matter, which may include discrimination, sex harassment, or any other claim involving worker rights or employer responsibilities. Call 8885294543 or contact us online today for a consultation and get an advocate who will fight for your rights and help secure your career and your future.

Amanda Smith, Esq. is a Partner in Tully Rinckey PLLC’s Buffalo office, where she focuses her practice on Federal and State Employment and Labor Law.