Unpaid Wages and Last-Paycheck Issues
Clear, Careful Analysis of Unpaid Straight-time Wages, Withheld Final Paychecks, and Related Violations
Wage theft does not always involve overtime. Many employees lose money through withheld wages, late payments, off-the-clock work, or improper deductions. These violations often seem small at first, but they add up quickly, especially when pay practices continue for months or years. New York law provides strong protections, and employees have the right to recover unpaid wages, penalties, and damages when employers fail to pay correctly.
As a selective solo practitioner, I examine these cases personally. My focus is on understanding the employer’s pay practices, identifying where violations occurred, and explaining your options clearly so you can decide how to proceed.
How Unpaid Wage Claims Arise
Unpaid wages appear in many forms, and employers are often unaware of (or choose to ignore) their obligations under the New York Labor Law and the Fair Labor Standards Act. Common issues include:
- Off-the-clock work, such as opening or closing duties, security checks, or pre-shift preparation that is not recorded.
- Time-shaving or automatic deductions, where employers reduce reported hours or deduct breaks that were never taken.
- Failure to pay for all hours worked, including travel time, training, meetings, or required after-hours tasks.
- Late or missing final paychecks, particularly when employment ends abruptly.
- Unlawful deductions, such as deductions for uniforms, equipment, shortages, or alleged damages that the law does not permit employers to charge to employees.
- Improper rounding practices, which can consistently reduce an employee’s paid hours.
Last Paycheck Problems
When an employee leaves a job, whether voluntarily or involuntarily, final wages must be paid in a timely manner. Employers sometimes delay final pay, withhold it pending the return of equipment, attempt to offset alleged debts, or claim that compensation will be paid “later.”
New York law does not allow employers to hold wages hostage. If your final paycheck was late, incomplete, or never issued at all, you may have a claim for unpaid wages and related penalties.
Illegal Deductions and Reimbursements
Employers may not deduct money from paychecks unless the deduction is specifically authorized by law and for the employee’s benefit. Deductions for uniforms, equipment, losses, cash shortages, customer errors, or damages are generally unlawful. Some employers avoid calling these deductions by labeling them as “fees,” “chargebacks,” or “adjustments,” but the law looks at the substance rather than the label. In many cases, these deductions create a separate claim in addition to any underlying unpaid wages.
Evidence and Evaluation
Unpaid wage claims are often stronger than employees realize, especially when time records are incomplete or inaccurate. If an employer fails to keep proper records, the law allows employees to prove their hours worked through testimony, documentation, and reasonable estimates.
When evaluating your claim, I look closely at:
- Pay statements and records of hours worked
- Timekeeping systems and their accuracy
- Communications about schedules, duties, or breaks
- Policies regarding rounding, deductions, or off-the-clock tasks
- The timing and completeness of your final paycheck
Potential Remedies
Employees may be entitled to recover unpaid wages, interest, liquidated damages (which often double the unpaid amount), statutory penalties, attorneys’ fees, and litigation costs. New York’s six-year statute of limitations allows employees to recover losses that accumulated over long periods of time.