Understanding Wage Theft Penalties

If They Took Your Wages the Law Will Take It Out on Them

When your paycheck doesn't match your hours, it’s more than frustrating, it's personal. Whether it's missing overtime, off-the-clock work, or getting shorted altogether, wage theft hits hard. And in New York, the law doesn’t just make employers pay it back, it punishes them for taking what isn’t theirs.

At Horn Wright, LLP, we’ve seen what happens when workers finally take a stand. You’re not just fighting to recover lost pay. You’re holding your employer accountable for breaking the law. And yes, the law is on your side.

What Wage Theft Means Under New York Labor Law

Wage theft covers a wide range of illegal pay practices under both state and federal law. In New York, wage theft is defined under Labor Law Articles 6 and 19, and it includes underpayment, nonpayment, and unauthorized deductions from an employee’s earnings. The federal Fair Labor Standards Act (FLSA) also prohibits these practices.

This can show up in many ways, not paying for all hours worked, withholding final paychecks, not paying overtime, or misclassifying someone to avoid benefits. Employers may also fail to provide required wage notices under NYLL §195, which compounds their liability.

The key element? Intent doesn’t matter as much as violation. Whether your boss "meant to" short you or not, if the wages are missing, it may qualify as wage theft under New York law.

Civil and Criminal Penalties for Employers in Violation

In New York, wage theft is taken seriously, and not just civilly. Under Labor Law §198(1-a), employers who violate wage laws can be hit with civil penalties, including back wages and liquidated damages equal to 100% of the wages owed. In more severe or repeated cases, employers may face criminal charges under NYLL §213, which can result in fines or imprisonment.

Federal law also allows the U.S. Department of Labor to pursue enforcement actions. The FLSA enables courts to impose monetary penalties, especially when willfulness or bad faith is involved.

The combination of civil and criminal penalties gives New York some of the strongest enforcement tools in the country, but only if workers come forward and file.

When Employers Can Be Held Personally Liable

It’s not just the company that can get in trouble, individual owners and managers can also be on the hook. Under New York Labor Law §198-b and relevant case law (like Irizarry v. Catsimatidis), courts have held that individuals with control over payroll or personnel decisions may be personally liable for wage violations.

That means a restaurant owner who tells the payroll company to withhold overtime can be sued. Or a store manager who docks pay as punishment may have to pay out of their own pocket. The law looks at who had authority, not just who signed the check.

Personal liability raises the stakes. It also encourages settlements because business owners often don’t want their names attached to wage theft suits in court records.

What You Can Recover Beyond Just Lost Wages

When wage theft happens, the money you lost is just the beginning. New York law allows for liquidated damages, prejudgment interest, and attorney’s fees on top of the wages owed. Under Labor Law §198(1-a), workers can recover double the unpaid amount unless the employer can prove they made a genuine good-faith error, a hard thing to do.

Here’s what recovery may include:

• Back wages covering every underpaid dollar
• Liquidated damages equal to 100% of those unpaid wages
• Interest, calculated from the date the wages were due
• Legal fees, so the cost of hiring an attorney doesn’t come out of your pocket

This structure is designed to not just repay, but to penalize. It motivates employers to fix violations quickly once a claim is filed.

How Penalties Increase in Repeat Violation Cases

New York law ramps up penalties for employers who break the rules more than once. Under NYLL §219, employers cited for wage violations may face additional fines if the Department of Labor finds repeated noncompliance within six years.

These can include:

• Fines up to $1,000 for a first offense
• Up to $2,000 for a second
• As much as $3,000 for a third or later violation

For employers with a pattern of abuse, especially in industries like construction, food service, or delivery, the cost of ignoring the law adds up quickly. And in class or group actions, the penalties are multiplied across all affected employees.

Repeat violations may also lead to debarment, where the employer is banned from public contracts or state-funded work under Article 8 of the NYLL.

How to Trigger Maximum Penalties in a Claim

To push for maximum penalties, your complaint needs to be clear, well-documented, and properly filed. That starts with gathering your evidence. Even without perfect records, your testimony and timeline are powerful under FLSA and NYLL §196-a, which shift the burden of proof onto employers who failed to keep proper records.

You can strengthen your position by:

• Showing repeated or long-term violations, especially over multiple pay periods
• Demonstrating employer knowledge or intent
• Including other employees’ statements or corroboration
• Reporting any retaliation, which can add a separate claim under Labor Law §215

When claims are detailed and supported, the court or Department of Labor is more likely to impose the full range of statutory damages.

How New York’s Penalties Compare to New Hampshire’s Wage Theft Laws

New York’s penalties for wage theft are among the most aggressive in the U.S. Compared to New Hampshire, where violations are typically handled through administrative fines and lower recovery limits, New York offers workers stronger remedies.

New Hampshire’s RSA 275:42–65 addresses wage claims and allows for back pay, but liquidated damages are more limited and depend heavily on enforcement by the Department of Labor. New York, by contrast, empowers private lawsuits with guaranteed attorney’s fees and double damages under NYLL §198.

In short, while both states offer protections, New York gives workers more control and more leverage when taking action.

How Horn Wright, LLP, Can Help You Enforce Real Consequences

Wage theft isn’t just about a short check. It’s about employers banking on your silence. At Horn Wright, LLP, our employment law attorneys take pride in holding violators accountable, not just with back pay, but with the full weight of New York’s penalty laws.

If you're ready to take a stand, we’ll guide you through every step, from gathering proof to demanding maximum recovery. And if you want trusted help from a legal team recognized for protecting worker rights, we’re ready when you are.