Wage theft occurs every pay period to many workers in New York. Time theft occurs less often but causes millions of dollars in losses for businesses. Local, state and federal laws are designed to help employees recover unpaid wages and help employers recover lost payments.
Wage theft is the withholding of wages to an employee from an employer. The law requires all employers to pay their employees or independent contractors based on mutual contracts. Overtime and minimum wage laws set minimum standards for how employers have to compensate employees fairly.
Wage theft is the failure to pay or underpaying workers for the duties performed on the clock. In a claim, the employee is required to state the specific work dates and hours and the total amount of unpaid wages. Low-paid workers are the most vulnerable group for wage theft because they are less likely to check for errors with their payments.
Time theft is the failure to match the number of hours worked with the wages earned. Employees work reduced hours but falsify their timesheets to receive payments for the full hours. Wage and hour issues are common in large workforces and workplaces with high turnover rates. Employers may find it more difficult to track the specific hours and activities for hundreds of workers.
Federal laws require that employers compensate employees for their correct earnings. Wage theft occurs when employers fail to pay correct wages. Time theft occurs when employees record paid time for work that they did not perform. An employer or employee has the right to file a lawsuit to recover unpaid wages or excessive payments.