If You Don't Pay Now, You May Pay A Lot More Later in New York

New York state is about to enact—assuming Governor Patterson signs the bill into law—the Wage Theft Protection Act.  As the name implies—Wage Theft—the pending law essentially treats underpayment of employees as a criminal act. While it doesn’t provide for jail time for managers or business owners who fail to pay minimum wage or overtime, it does establish severe monetary penalties. Under the Act, an employee who is underpaid wages can recover double what he or she is owed—so the unpaid wages plus the same amount again. In addition, if an employee sues and wins and the employer does not pay the money owed (wages plus the additional “liquidated damages” doubling the award) within 90 days, the employee can receive an extra 15% of the total judgment—so an extra 30% of the unpaid wages—plus attorneys fees and costs.

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