New York Legislature Passes Historic Wage Theft Protection Act

The Wage Theft Prevention Act has passed both the New York State Assembly and the New York State Senate protecting thousands of hard-working men and women from unscrupulous employers who steal their earnings by paying less than minimum wage, misclassifying them as independent contractors, forcing them to work off the clock and various other schemes.

This important legislation will increase penalties and strengthen enforcement of laws protecting workers from nonpayment and underpayment of wages, according to the New York State Senate.
Every day countless workers across the state face rampant abuse on the job. Recent studies have found that a large number of employees are illegally earning less than minimum wage, while others are being paid less than their agreed upon wage, the State Senate said.

Additionally, employees often do not receive the overtime pay they earn, and are left in the dark regarding their employers’ methods for calculating wages and benefits, the State Senate added..
The National Employment Law Project estimates that more than $1 billion is stolen annually from NYC workers by unscrupulous employers. Advocates project that the WTPA would bring in approximately $50 million in increased savings and revenues to help state government save valuable programs currently threatened by the fiscal crisis.
“Stealing from employees not only hurts families, it hurts communities.  It also makes honest employers less competitive.  Businesses that are good corporate citizens and promptly pay their employees what is owed them, as required by law, should not be at a disadvantage to companies that are illegally withholding wages from their workers. These rogue employers not only steal wages from hard-working families, they also steal much-needed funds from our taxpayers. I commend my colleagues in the Senate, Assemblyman Carl Heastie, Make the Road by Walking, and all the other advocates for defending the basic rights of New Yorkers, who are doing all they can to make ends meet during these difficult economic times,” said Senator Diane J. Savino (D-Staten Island/Brooklyn) sponsor of the bill.
Senate Majority Conference Leader John L. Sampson said, “For decades, employees have seen their wages and overtime pay unfairly withheld by some unethical employers, and they have had little legal recourse. Fortunately, this legislation will change that. Senator Savino’s bill ensures those who work get paid, fairly and equitably.”
Under current law, there is little penalty for employers who violate wage requirements. Penalties for wage theft are so low that there is, in fact, a financial incentive to simply steal workers’ wages.  Responsible businesses can’t compete when law-breaking employers are driving down pay rates.
The Wage Theft Prevention Act is a comprehensive bill which will increase penalties, increase protection of workers who speak up, as well as add additional enforcement tools that the Department of Labor and Courts can use to investigate cases and collect the money that workers are owed.
The Senate version, sponsored by Senator Savino, was passed in July 2010 and the Assembly passed this important legislation on November 30, 2010.

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