Can I Sue My Employer for Not Paying Me Correctly in New York?

Yes. If your New York employer failed to pay your regular wages, overtime, spread-of-hours pay, earned commissions, or made improper deductions, you can pursue those wages under New York Labor Law (NYLL) Article 6 and, in most cases, recover an additional 100% in liquidated damages plus your attorney's fees. New York's wage-protection statutes are among the most employee-favorable in the country, and they reach further back in time than federal law.

This page focuses specifically on suing a New York employer for wages you already earned but were not paid correctly under state law. If your issue is narrower, we cover related topics in depth on our final paycheck, NYC minimum wage, and differential/shift pay pages.

Why New York Law Matters More Than the FLSA

Many wage articles online simply restate the federal Fair Labor Standards Act (FLSA). But if you worked in New York, NYLL is usually the stronger claim. Here is why New York employees frequently sue under state law rather than relying solely on federal law:

• Longer lookback: The statute of limitations for wage claims under NYLL is six years (Labor Law §198(3)), compared with two years under the FLSA (three years for willful violations).
• 100% liquidated damages: Under NYLL §198(1-a), a successful employee is presumptively entitled to liquidated damages equal to 100% of the unpaid wages, unless the employer proves it acted in good faith. So $10,000 in unpaid wages can become $20,000, plus interest.
• Mandatory attorney's fees and interest: §198 requires the court to award prevailing employees their reasonable attorney's fees, costs, and prejudgment interest.
• Wage Theft Prevention Act penalties: New York adds separate statutory penalties for missing wage notices and pay stubs (discussed below).

Common Ways New York Employers Underpay Workers

1. Improper or Unauthorized Deductions (NYLL §193)

New York Labor Law §193 sharply restricts what an employer may deduct from your pay. Deductions are generally permitted only if (a) required or authorized by law (taxes, Social Security, Medicare, court-ordered garnishments), or (b) expressly authorized in writing by the employee and for the employee's benefit within a narrow list of permitted categories (e.g., insurance premiums, pension contributions, certain charitable contributions).

Importantly, New York prohibits many deductions employers commonly try to take, including deductions for cash-register shortages, breakage, spoilage, uniform costs that drop you below minimum wage, and "recovery" of alleged debts by simply withholding pay. An employer cannot generally recoup a claimed overpayment or salary advance except under DOL regulations (12 NYCRR §195) that require advance notice and specific procedures. If money is being taken out of your check that does not fit these rules, that is an unlawful deduction.

2. Unpaid Overtime

Non-exempt employees in New York must be paid overtime at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. ("Regular rate" includes certain bonuses and shift differentials, so it is often higher than the base hourly rate.)

Example: If you earn $18/hour and work 50 hours in a week, you are owed $18 for all 50 hours plus an additional overtime premium of $9/hour (half of $18) for the 10 hours over 40 — meaning your overtime hours pay $27/hour total.

Common overtime abuses include misclassifying non-managers as exempt "managers," mislabeling employees as independent contractors, manipulating time records, and requiring off-the-clock work (answering emails after hours, working through meal breaks, pre-shift setup). Under New York and federal law, exempt status turns on your actual duties and salary level — not your job title. A "Client Service Manager" who only handles customer inquiries and record-keeping is likely not exempt.

3. Minimum Wage Violations (Including Tipped Workers)

New York's minimum wage is set by geography and updated annually. As of January 1, 2025, the minimum wage is $16.50/hour in New York City, Long Island, and Westchester, and $15.50/hour in the remainder of New York State, with scheduled annual increases thereafter. Tipped food-service and service employees may be paid a lower cash wage plus a "tip credit," but only if their tips bring them to the full minimum wage and the employer follows strict notice and recordkeeping rules. If the tip credit is claimed improperly, the employer owes the full minimum wage. See our detailed NYC minimum wage guide for tipped, non-tipped, and fast-food rates.

4. Spread-of-Hours Pay

A distinctly New York protection: under the New York Hospitality and Miscellaneous Wage Orders, employees are entitled to one additional hour of pay at the minimum wage for any workday in which the spread of hours (from the start of the first shift to the end of the last shift) exceeds 10 hours. Many employers overlook this entirely.

5. Frequency-of-Pay Violations (NYLL §191)

NYLL §191 dictates how often you must be paid. Manual workers must generally be paid weekly and within seven calendar days after the end of the week in which the wages were earned; clerical and other workers must be paid at least semi-monthly. New York courts have recognized that late payment of wages — even if the full amount is eventually paid — can support a claim for liquidated damages under §198. If you are a manual worker being paid bi-weekly, you may have a frequency-of-pay claim.

6. Withheld Final Pay, Bonuses, and Commissions

Earned commissions and non-discretionary bonuses are "wages" under NYLL and cannot simply be forfeited. Withholding a final paycheck or promised earned compensation is actionable. Because final-pay disputes have their own nuances, visit our last paycheck page.

Wage Notice and Pay-Stub Penalties (Wage Theft Prevention Act)

New York's Wage Theft Prevention Act requires two things employers frequently ignore:

• Wage statements (pay stubs): Every payment of wages must include a statement listing the pay period, rate(s), hours worked, gross wages, deductions, and net wages. Failure can expose the employer to statutory damages of $250 per workday, up to $5,000 per employee (plus fees and costs).
• Wage notice at hire: Employers must give a written notice of pay rate, pay frequency, and employer information at hiring. Failure can expose the employer to $50 per workday, up to $5,000 per employee.

Where Can You Bring a New York Wage Claim?

You generally have three paths. They are not equivalent, and the best choice depends on the size of your claim, how quickly you need resolution, and whether other employees are affected.

For most substantial New York wage claims, a private lawsuit under NYLL captures the largest recovery because of the six-year lookback, the 100% liquidated damages, and mandatory fee-shifting. If numerous coworkers were underpaid the same way, a class or collective action may be appropriate.

Statute of Limitations at a Glance

• NYLL wage & hour claims: 6 years (Labor Law §198(3)).
• FLSA wage & hour claims: 2 years, or 3 years if the violation was willful.
• Breach of employment contract: generally 6 years.
• NYC/NYS Human Rights Law claims: generally 3 years.
• EEOC-covered discrimination charges (Title VII, ADA, ADEA): generally 300 days to file a charge in New York.

Because different claims run on different clocks, it is important not to wait. If part of your claim is time-barred under the FLSA, it may still be recoverable under NYLL's longer period.

What You Can Recover

• Unpaid wages — regular pay, overtime, spread-of-hours pay, earned commissions/bonuses, and improperly deducted amounts.
• Liquidated damages — up to 100% of the unpaid wages under NYLL §198.
• Prejudgment interest.
• Attorney's fees and costs — mandatory for a prevailing employee under §198.
• Wage-notice and pay-stub penalties under the Wage Theft Prevention Act.

Protection Against Retaliation

New York Labor Law §215 prohibits employers from firing, demoting, cutting hours, or otherwise retaliating against an employee for making a wage complaint or participating in a wage proceeding. Retaliation is a separate violation that can add liquidated damages up to $20,000 and other remedies. If your employer retaliates after you raise a pay dispute, document everything and speak with counsel promptly.

How Our New York Firm Helps

The Law Offices of Albert Goodwin represents employees and small businesses in wage disputes throughout New York City, Brooklyn, and Queens. When we take a wage case, we typically:

• Review your pay stubs, time records, offer letter, and employee handbook to identify every viable NYLL and FLSA claim;
• Calculate unpaid wages, overtime, spread-of-hours pay, liquidated damages, and WTPA penalties across the full six-year period;
• Send a demand letter positioning the claim for early resolution where appropriate;
• File in the strongest forum — and pursue a class or collective action if coworkers were affected;
• Evaluate whether the matter can be handled on a contingency basis, depending on the case.

Wage law is technical: the interplay of §193 deductions, §191 pay-frequency rules, §198 damages, wage orders, and overlapping federal law requires careful analysis. An experienced New York wage and hour attorney can help ensure you recover everything you are owed.

Frequently Asked Questions

How far back can I recover unpaid wages in New York?

Under New York Labor Law §198(3), you can generally recover wages going back six years from the date you file, which is longer than the FLSA's two-to-three-year window.

Can I get more than just my unpaid wages?

Yes. New York law allows liquidated damages of up to 100% of the unpaid wages, plus interest, attorney's fees, court costs, and — where applicable — Wage Theft Prevention Act penalties for missing pay stubs and hire notices.

My employer calls me a "manager" and doesn't pay overtime. Is that legal?

Not necessarily. Exempt status depends on your actual duties and salary level, not your title. If you do not genuinely supervise employees and exercise managerial discretion, you may be owed overtime despite being called a manager.

Can my employer deduct shortages, breakage, or uniform costs from my pay?

Generally no. NYLL §193 prohibits most such deductions. Only deductions required by law or expressly authorized in writing for the employee's benefit within a narrow permitted list are allowed.

What if my employer fires me after I complain about my pay?

That may be unlawful retaliation under NYLL §215, which is a separate claim that can add significant damages, including liquidated damages up to $20,000.

Do I have to file with the Department of Labor first?

No. You can file a private lawsuit directly in court, which often yields the largest recovery because of New York's six-year lookback, 100% liquidated damages, and mandatory attorney's fees.

Talk to a New York Wage and Hour Attorney

If you believe your employer has not paid you correctly, the Law Offices of Albert Goodwin can evaluate your claim under New York Labor Law and federal law. We have offices in New York City, Brooklyn, and Queens. Call 212-233-1233 or email [email protected].

This page is general information about New York wage law and is not legal advice. Wage rates, thresholds, and deadlines change; consult an attorney about your specific situation.