New York State and Federal laws offer protections for employees’ wages and working conditions; unfortunately, many businesses choose not to follow them. Workers in restaurants, construction, or office settings, can experience violations of wage and hour laws and regulations. Even workers in unions can be subject to employers’ violations. If you or a loved one have been subject to illegal wage and hour policies, we recommend you contact an experienced wage and hour attorney to learn more about your rights. You may be entitled to damages.
New York State Minimum Wage Laws
The Fair Labor Standards Act (FLSA) establishes a minimum hourly wage of $7.15 that employers must pay their workers, regardless of whether they work full-time. States also have their own minimum wage laws; for example, employers in California must pay their workers a minimum of $14.00 per hour, while the minimum wage is only $7.15 per hour in Georgia.
As of 2021, the New York minimum wage is $12.50 for most areas of the state employees. However, this varies by region and business type. Below is a detailed list of New York State’s mandated minimum wages:
New York State Minimum Wages
New York City
$15.00/hour for business with 11 or more employees
$14.50/hour for business with ten or fewer employees.
$12.50/hour for tipped employees (cash and tip combined)
$15.00/hour for fast-food workers
Nassau, Suffolk, and Westchester Counties:
$14.00/hour (increasing to $15/hour after December 31st, 2021)
$11.65/ hour for tipped employees (cash and tip combined)
$14.50/hour for fast-food workers (increasing to $15.00 after July 1st, 2021)
Rest of New York State:
$12.50/hour (will increase according to Consumer Price Indexes)
$10.40/ hour for tipped employees (cash and tip combined)
$14.50/hour for fast-food workers (increasing to $15.00 after July 1st, 2021)
Overtime Pay & Wage Theft
In addition to minimum wage laws, the Fair Labor Standards Act requires employers to pay overtime wages to hourly workers working more than 40 hours a week. For every hour worked after the first 40, workers are entitled to time-and-a-half (1.5 times their hourly wage). For example, an employee making $15.00/hour is entitled to $600 in gross compensation for the first 40 hours worked that week. For every hour worked after the first 40, the employee is entitled to $22.50/hour in gross compensation.
Overtime wage laws are sometimes disregarded by employers, namely with employees who work different hours every week. For example, an employee working 30 hours one week and 50 hours the next is entitled to 10 hours of overtime pay; however, employers sometimes compensate them as if they worked two 40 hour weeks to avoid overtime compensation. In this example, the employer is committing wage theft.
Tipped Employees
In New York State, businesses in industries using tipped employees (employees making $30 or more per month in tips) are not subject to the same minimum wage standards as other hourly workers. Instead, earned tips, known as “tip credits,” are used to make up the difference between their hourly wage (typically below minimum wage) and the state-mandated minimum wage. Employees who do not receive enough tips to make up this difference are still entitled to receive a minimum wage from their employer.
Tip Pooling
New York State and Federal Law also allow for tip pooling, where employee tips are aggregated and evenly distributed among employees performing tipped responsibilities. This compensation structure is legal and quite prevalent in the restaurant industry; however, employers can take advantage of tip pooling. In many cases, employers will distribute the aggregated funds to pay non-eligible employees such as chefs and even themselves, stealing money from deserving employees. This is considered wage theft.
Unlawful Deductions
Paycheck deductions are permitted in New York under certain circumstances. Employers may deduct an employee’s paycheck to either recover wage advances made to employees or recover overpayments caused by clerical errors. In both cases, businesses must provide the employee with a written notice and may only recover overpayments made eight weeks before issuing the statement. Though paycheck deductions are legal under some circumstances, some employers make illegal deductions from their workers. Some common examples include deductions for broken tools or equipment, lost or stolen items or inventory, or other illegal deductions.
Employee Misclassification
Employee misclassification is a common wage-theft method businesses use to cheat hourly workers. Under FLSA regulations, salaried workers and independent contractors are typically ineligible to receive overtime compensation, even if they work more than 40 hours in a week. Because of these guidelines, employers can misclassify hourly workers as salaried employees to avoid paying overtime compensation. Some businesses will even misclassify workers as independent contractors to avoid benefits such as health insurance, which full-time employees are entitled to receive. Some other full-time benefits include: (This needs to be finished) In all of these examples, the employer is committing wage theft.
Do New York labor laws extend to undocumented workers?
Immigrant workers are entitled to the same labor law protections as American citizens, regardless of their immigration status. Undocumented workers qualify to receive the mandated minimum wage, overtime pay, the right to unionize, and a safe and discrimination-free work environment. Nevertheless, undocumented workers are frequently taken advantage of by employers, namely because they are unaware of their rights set forth by New York labor laws. It is important to note that undocumented workers are eligible to sue their employers for labor and employment violations.
Can my employer fire me for reporting a wage and hour violation?
Absolutely not. It is illegal for an employer to terminate, demote, or otherwise retaliate against an employee for reporting a labor or employment violation. If you have experienced retaliation after reporting a violation, you are entitled to separate and additional damages.
Despite the New York and Federal wage and hour laws, some employers continue to take advantage of their workers. If you or a loved one have fallen victim to a wage and hour violation, it is crucial that you contact an experienced attorney because there is a time limit. According to the Fair Labor Standards Act, the statute of limitations for wage and hour violations only extends three years, however, the New York Labor Law extends the statute of limitations to six years. Our wage and hours attorneys at Pryor Law have decades of experience securing substantial settlements and verdicts for our clients, and our results speak for themselves. Call us today or fill out our contact form for a free, no-obligation consultation to discuss your legal matter.
Our employment attorneys at Pryor Law work closely with our clients to ensure their legal rights are protected. Call us at (718) 829-0222 or fill out our contact form to see how much your claim may be worth. We are located in the Bronx, NY, and our experienced trial attorneys are ready to fight for you.
FAQs
What if I can’t afford an attorney?
You can. Our attorneys at Pryor Law operate on contingency, meaning we do not get paid unless we get you the justice and compensation you deserve.
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Pryor Law
292 City Island Ave., Bronx, NY 10464
Phone: 718-829-0222 | Email: info@pryorlaw.com
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