Wage and hour claims are becoming increasingly common in New York City as a result of frequent changes to employee compensation laws, particularly at the state and local levels. Whether your business has been accused of a wage violation or you have been denied what you rightfully earned, you can turn to Woods Lonergan PLLC.
While many disputes can be resolved through negotiation, mediation, and arbitration, we have the skills and resources to handle claims that rise to the level of litigation.
From minimum wage and overtime violations to employee misclassifications and unpaid commissions, we work to achieve positive outcomes in and out of the courtroom. Contact our office today for a complimentary consultation.
What is the Fair Labor Standards Act?
The federal Fair Labor Standards Act (FLSA) establishes minimum wage and overtime pay standards. Employers in New York and New York City must adhere to local minimum wage requirements (see below) in addition to those of the FLSA.
The FLSA mandates that employers pay employees classified as “nonexempt” overtime pay at a rate of “time and one-half” their standard hourly rate for all hours worked over 40 hours per week. Employees exempt from this overtime requirement including those who:
- Earn more than $884 per week or $35, 568 per year;
- Are paid a salary rather than an hourly wage; or
- Perform exempt job duties, including administrative, professional, or management.
Violations occur when employers:
- Fail to pay the minimum wage;
- Misclassify employees;
- Miscalculate rates of pay; or
- Fail to pay commissions, bonuses or other forms of earned compensation.
Ultimately, it takes an experienced employment law attorney to resolve wage disputes. That’s where Woods Lonergan PLLC comes in. We have the skills and experience to successfully negotiate and litigate all types of claims.
Minimum Wage and Overtime Pay Attorneys
The minimum wage in New York City is currently $15 per hour. In addition, employers are required to adhere to the FLSA overtime requirements. Under New York State law, however, employers in most industries (excluding building services) are permitted to meet the minimum wage requirement by combining a “cash wage,” paid by the employer, with an allowance for tips that the employee receives from customers (a “tip credit”). Employers can pay tipped employees a cash wage of $12.50 per hour combined with a $2.50 tup credit. Food service workers, in particular, are entitled to a $10 cash wage along with a $5 tip credit.
Whether you need assistance, trust the team at Woods Lonergan to provide you with informed representation when you need it most.
Other Wage and Hour Claims Our Firm Handles
Our wage and hour attorneys work with both sides to disputes to find innovative solutions to a wide range of disputes, including:
- Off-the-Clock Violations: These claims involve hourly employees illegally working off-the-clock, skipping rest and meal breaks, or working overtime and not being compensated for all of their time.
- Employee Misclassifications: Under the FLSA and state law, employers are required to properly classify workers as contractors, exempt or non-exempt employees, and pay overtime to non-exempt workers.
- Unpaid Bonuses/Commissions: Employers must pay salespeople earned commissions, bonuses, and other forms of earned compensation, including wages still owed to employees who leave their job.
- Illegal tip-sharing: All tipped workers (e.g., restaurant, hospitality) must be paid the minimum wage based on the combined cash wage and tip credit. Employers cannot take tips earned by servers; however, tip-pooling is permitted.
- Illegal Deductions: Employers are prohibited from taking unauthorized deductions from workers’ paychecks, such as the cost of a uniform, accidental breakage, or cash and property shortages.
It is worth noting that groups of workers who have suffered similar harm may be able to address allegations of through a class-action lawsuit. Our team is well-prepared to handle claims in any forum, including arbitration, administrative proceedings, and state and federal court.
Exempt/Non-Exempt Workers in New York
In New York, understanding the distinction between exempt and non-exempt workers is essential for compliance with labor laws. Exempt employees are typically salaried workers who are exempt from certain wage and hour provisions, such as overtime pay requirements, under the Fair Labor Standards Act (FLSA). They often hold professional, executive, or administrative positions and are paid on a salary basis. Conversely, non-exempt employees are entitled to receive overtime pay for hours worked beyond the standard 40-hour workweek. They are usually paid on an hourly basis and encompass a broader range of occupations. It’s crucial for employers to accurately classify their employees to ensure compliance with state and federal labor regulations, thus avoiding potential legal issues and penalties.
Examples of exempt employees include employees in:
- Professional Duties: Employees who primarily perform work that requires advanced knowledge in a specialized field. This could include professions such as doctors, lawyers, architects, engineers, and scientists. Their work often involves exercising discretion and judgment, and they typically have advanced degrees or specialized training in their respective fields.
- Executive Duties: Employees who are generally in leadership roles where they manage and supervise other employees. This includes positions such as CEOs, managers, directors, and department heads. Their primary duties involve overseeing the work of others, making decisions that directly impact the organization, and exercising managerial authority.
- Administrative Duties: Employees who perform office or non-manual work directly related to the management or general business operations of the employer or its customers. Examples include HR specialists, financial analysts, marketing managers, and administrative assistants to executives. These employees often have a significant degree of autonomy and discretion in their work, making decisions that affect the business operations or policies.
Retaliation
Employers cannot retaliate against workers who complain about wages by taking an adverse employment action (e.g., reduction in hours or pay, demotion, suspension, termination). Employees who have been subjected to retaliation can take legal action to obtain compensation including:
- Lost wages (back pay, front pay);
- Unpaid commissions/bonuses;
- Lost benefits;
- Liquidated damages; and
- Attorneys’ fees and costs.
Ultimately, it takes a skilled wage and hour attorney to litigate an employment retaliation claim. At Woods Lonergan, we have a proven history of achieving positive outcomes at the bargaining table and in the courtroom.
Statute of Limitations For Wage and Hour Claims in New York
Wage and hour claims in New York are bound by different statutes of limitations based on the nature of the claim. Here is a breakdown of the different statute of limitations
- Unpaid minimum wage or overtime: Typically, the statute of limitations extends to six years. This implies that an employee has a window of up to six years from the due date of wages to lodge a claim for unpaid minimum wage or overtime compensation.
- Unpaid wages other than minimum wage or overtime: Generally, the statute of limitations spans six years for claims involving the nonpayment of regular wages, such as unpaid commissions or bonuses.
It is crucial to recognize that these statutes of limitations are subject to potential changes, and there might be exceptions or deviations based on individual case circumstances. Furthermore, it is advisable to seek guidance from a qualified unpaid wages attorney or appropriate legal resource to obtain the most precise and current information concerning your specific situation.
Contact Our Experienced New York City Wage and Hour Claims Attorneys
Wage and hour claims can be complicated and challenging. Don’t go through it alone. Regardless of the dispute facing you, turn to the wage and hour attorneys at Woods Lonergan PLLC to help guide you through the legal process. Above all, we will work to achieve the best possible outcome through negotiation or litigation. Contact us today to set up a complimentary consultation.
Woods Lonergan PLLC helps clients with wage and hour matters throughout NYC including the boroughs of Manhattan and Brooklyn.