Minimum Wage Violations Explained

Paid Less Than Minimum Wage? You Are Not Alone

Being underpaid doesn’t just hurt your bank account. It hits your sense of fairness. You show up on time, do the work, and follow the rules. But if your paycheck doesn’t match the legal minimum wage, something’s off. And it’s not your fault. Minimum wage violations happen in every corner of New York, from small diners to big chain stores. If this sounds familiar, you’re not alone, and you do have options.

At Horn Wright, LLP, we’ve seen how minimum wage violations affect hardworking people. Our employment law attorneys know how to hold employers accountable. We don’t let them get away with quiet underpayments. If you suspect you’ve been shortchanged, we’re here to help you get the full amount you earned.

The federal Fair Labor Standards Act (FLSA) sets the national minimum wage at $7.25 per hour, but New York law goes further. Under New York Labor Law Article 19 and 12 NYCRR Part 146, the state sets higher rates based on region and employer size. These laws are enforced by the New York State Department of Labor (NYSDOL), which investigates wage complaints and can take legal action when violations occur.

And it’s more common than you might think. From undocumented workers to students in part-time jobs, thousands of New Yorkers are underpaid every year. This isn’t just a paycheck issue. It’s a legal one.

Minimum Wage Rates in New York by Region and Employer Size

New York doesn’t have a one-size-fits-all wage rate. Your legal minimum wage depends on where you work and who you work for. It’s updated regularly and increases are built into the law. That means your pay should go up automatically when the state says so. If it doesn’t, that’s a red flag.

As of January 1, 2025, minimum wage rates under the NYCRR are:

• New York City: $16.00 per hour for all employers
• Long Island & Westchester: $16.00 per hour
• Rest of New York State: $15.00 per hour

For fast food workers across the entire state, the minimum wage is also $16.00 per hour, per 12 NYCRR Part 146-1.2. Employers must also post minimum wage notices in a visible location and provide written wage statements to employees. If you’ve been paid below any of these levels, your employer may be breaking the law.

Common Tricks Employers Use to Avoid Paying the Legal Rate

Most employers know exactly where the line is, and some will do whatever they can to tiptoe across it. That includes manipulating hours, mislabeling job titles, or quietly shaving time off the clock. If you feel like your paycheck is smaller than it should be, you might be right.

New York Labor Law §195 requires employers to maintain accurate payroll records and wage statements. The FLSA also requires proper payment of minimum wage. Violations happen when employers:

• Fail to pay for all hours worked, like meetings, training sessions, or prep time
• Use time rounding that always favors the company
• Deduct money for uniforms, tools, or register shortages, pulling you below minimum wage

These aren’t just unfair. They’re illegal. Whether your boss meant to or not doesn’t change the fact that you were underpaid. You don’t need to prove intent, only the violation.

Tipped Workers and the Subminimum Wage in New York

If you work in a restaurant, bar, or hospitality job, you might not earn the full minimum wage on paper. That’s because New York allows a "tip credit," which lets employers pay less if your tips make up the difference. But the rules are strict. And many employers don’t follow them.

Under 12 NYCRR Part 146-1.3, tipped employees can be paid a lower base wage only if their tips consistently bring them up to or above the minimum wage. As of 2025, the tipped minimum wages are:

• Food service workers (NYC, Long Island, Westchester): $10.65 per hour, with a $5.35 tip credit
• Food service workers (Rest of NY State): $10.00 per hour, with a $5.00 tip credit

To qualify for the tip credit, employers must:

• Provide written notice to employees
• Track and report tips accurately
• Ensure total compensation equals at least the full minimum wage

If your tips didn’t cover the gap, your employer should have made up the difference. If they didn’t, they owe you back pay. And possibly penalties too.

How to Tell When a Violation Has Occurred

It’s not always obvious when you’re being underpaid. Sometimes it’s just a few dollars short on your check. Other times, it’s a missing hour here and there. But even small violations add up fast. The key is knowing what to look for.

According to the law, you should receive:

• A wage statement with every paycheck, showing hours worked and rate of pay
• Pay that matches or exceeds the legal minimum for your region
• Overtime pay for hours worked over 40 in a week, at 1.5 times your regular rate

If you’re missing documentation, being paid in cash without records, or being asked to work "off the clock," that’s a serious red flag. These aren’t minor oversights. They’re violations, and you can take action.

How to Report a Violation in New York State

Filing a complaint might sound intimidating. But in New York, the process is more accessible than many people realize. You can report a violation online, by mail, or even by phone. The New York State Department of Labor (NYSDOL) takes these claims seriously.

To file a claim under New York Labor Law Article 6 and Article 19:

• Visit the NYSDOL website and complete the Labor Standards Complaint Form
• Include details about your employer, job duties, hours, and pay
• Attach any supporting documents, like pay stubs, timesheets, or texts

Once filed, the NYSDOL will review your complaint and may contact your employer. In some cases, they launch a full investigation. If they confirm a violation, they can order your employer to pay what you’re owed and issue penalties.

You can also sue your employer in civil court, especially if the amount owed is significant. That route often results in higher recoveries, including liquidated damages and legal costs.

What You Can Recover if You Were Underpaid

When you file a wage claim, you’re not just chasing a few dollars. New York law gives workers tools to recover what they’re owed and then some. It’s designed to make employers think twice before violating the law again.

Under NY Labor Law §198, you may be eligible to receive:

• Full back pay for every underpaid hour
• Liquidated damages, often equal to the back pay amount
• Interest on your unpaid wages
• Attorneys’ fees and court costs, if you win in court

The total recovery can be double what you were initially shorted. If your employer retaliated after you spoke up, you may be entitled to additional compensation. These laws exist to make sure your time is respected and your pay reflects that.

How New York Minimum Wage Laws Differ from Maine’s Laws

Minimum wage laws vary a lot from state to state. If you’ve worked in both New York and Maine, knowing those differences could impact your claim. New York tends to have more worker-friendly protections and stricter enforcement.

As of 2025, New York’s minimum wage is region-based and includes fast food and tipped worker rules. Maine has a statewide rate of $15.00 per hour under Title 26, Chapter 7, which applies across all employers. Maine also permits a tip credit, but the rules are less detailed than New York’s.

Key differences:

• Filing window: New York allows claims going back six years under Labor Law §198. Maine limits recovery to three years.
• Damages: New York offers 100% liquidated damages. Maine allows them, but only in proven bad-faith cases.
• Enforcement: New York has more regional offices and a broader Labor Standards Division, improving access to help.

If you split time between both states, or moved between them for work, an attorney can help decide where to file and how to maximize recovery.

What Workers in Hospitality and Retail Need to Watch For

Minimum wage violations hit some industries harder than others. If you work in retail, food service, or hospitality, you’re more likely to face wage theft. These industries rely on hourly workers, part-timers, and seasonal staff. That makes it easier for bad employers to cut corners.

Under NYCRR Part 146 and Labor Law §195, watch for these warning signs:

• Tip pooling without consent, where management takes part of your tips
• Paying below minimum wage during slow shifts, even if tips are low
• Being asked to work split shifts or long days without spread-of-hours pay

In hospitality and retail, every hour counts. These workplaces often move fast, and that can lead to confusion about hours and breaks. But confusion doesn’t excuse illegal pay. If something feels off, trust that instinct.

Horn Wright, LLP, Fights for New York Workers Who Deserve Better

Being paid less than minimum wage isn’t just a mistake. It’s a violation of law and trust. If your wages don’t line up with what you legally earned, we can help. Our employment law attorneys at Horn Wright, LLP, have handled these cases across New York. If you’re ready to team up with a firm known for going toe-to-toe with wage theft, we’re ready to work for you.