Wage Theft Now a Crime in New York: What Employers Need to Know
New York State has taken proactive steps over the past decade to address what is seen as wage theft, with several legislative measures aimed at protecting workers' rights. On September 6, 2023, lawmakers in Albany passed a bill that officially categorizes wage theft as criminal larceny. This legislative move underscores New York's commitment to safeguarding workers and imposing legal consequences on employers who fail to provide fair compensation.
The recently approved bill introduces an innovative approach to combating wage theft. It modifies the larceny statute in the New York Penal Law to explicitly include wage theft, defined as when an individual is hired for work and fulfills their duties, yet their employer neglects to pay them at the legally mandated minimum wage rate and overtime.
What distinguishes this new law is its provision allowing prosecutors to combine multiple instances of wage non-payment or underpayment, even if these incidents occurred in different counties.
In essence, New York employers who fail to promptly and fully compensate their workers for their labor may now potentially face not only civil penalties but also criminal charges. This represents a significant shift in how wage theft is treated within the state.
Employer Responsibilities in Response to This Legislation
In light of this new law, it is crucial for employers across New York State to promptly review and adapt their policies and practices to ensure immediate compliance. To avoid potential legal consequences, employers should consider taking the following steps:
Regularly Examine Compensation Practices: Employers should routinely evaluate their wage and overtime policies to ensure strict adherence to New York State labor laws. Any discrepancies or potential issues should be promptly addressed.
Maintain Accurate Records: Precisely maintaining records of employees' work hours, wages, and compensation is of paramount importance. Employers should uphold transparent and meticulous record-keeping to substantiate their compliance with the law.
Consult Legal Counsel: In complex situations or when unsure about compliance, it is advisable for employers to seek guidance from legal professionals specializing in labor and employment law. They can offer effective guidance in navigating the legal landscape.
Implement Training Programs: Employers can establish training initiatives for managers and HR personnel to ensure a comprehensive understanding of labor laws and compliance requirements. This proactive approach can help prevent inadvertent violations.
Foster Transparent Communication: Employers should engage in clear and open communication with their employees regarding wage rates, overtime policies, and their entitlements under the law. Transparent communication can help mitigate misunderstandings and disputes.