Common Signs of Wage Theft in the Workplace and What to Do About It

Imagine working hard at your New York public-sector job—putting in extra hours on a big project or earning a bonus for excellent performance—only to find that your paycheck doesn’t reflect the full amount you’ve earned. Perhaps you clock 50 hours weekly but only see 40 hours’ pay, or a promised commission never arrives. If this sounds familiar, you might be a victim of wage theft. Unfortunately, wage theft is far more common than many realize. New York workers lose an estimated $3.2 billion in unpaid wages each year, and across the U.S., workers lose around $15 billion yearly due to wage violations like unpaid overtime or underpayments. Public-sector employees are not immune – even government workplaces can have payroll errors or overtime violations. The good news is New York labor law is firmly on your side. New York considers wage theft so serious that, as of 2023, wage theft can be treated as a crime (larceny) under state law. In this post, we’ll explain common signs of wage theft in the workplace and what to do about it. We aim to empower New York public employees with plain English insights on their rights and options. Remember: if you’ve earned wages, you deserve to be paid every dollar – and a New York employment lawyer can help you recover what you’re owed.

 At Kessler Matura P.C., our attorneys understand New York’s wage theft laws and have helped countless professionals secure the wages they deserve. Call 631-499-9100 or contact us today to discuss your case and explore your legal options for unpaid wages.

Common Signs of Wage Theft in New York Workplaces

Wage theft can take many forms, some subtle. As a New York public-sector worker, watch out for these common signs that your employer may be violating wage and hour laws:

Unpaid Overtime or “Off-the-Clock” Work

One of the most evident signs of wage theft is not getting paid for all your work hours, especially overtime. Unpaid overtime often happens when you work more than 40 hours a week but don’t receive the required “time-and-a-half” pay for those extra hours. For example, if you usually earn $20/hour, any hour over 40 in a workweek should be paid at $30/hour – that’s the law. It doesn’t matter if your employer has a “no overtime” policy or didn’t authorize the extra hours; they must pay you if you worked the time. Wage theft can also occur through off-the-clock work. This might look like a supervisor asking you to work through your lunch break or stay late after clocking out to finish tasks without paying for that time. All hours worked must be compensated in New York, and employers cannot evade overtime pay by offering “comp time” or perks instead of pay. If you find that your timesheets have been altered or you’re regularly performing duties before clocking in or after clocking out, those are red flags of wage violations. Public employees should be especially mindful – while some government agencies offer comp time, it must meet legal standards. If you’re consistently getting time off instead of overtime pay (without a proper agreement) or not getting compensated at all for extra hours, you may be experiencing wage theft.

Missing or Delayed Pay (Unpaid Wages and Commissions)

Another common sign of wage theft is any portion of your earned wages missing or delayed beyond the regular pay period. This includes not receiving pay for all hours worked and unpaid bonuses or commissions you were promised. For instance, if you closed a deal or met a performance target that should earn you a commission, that commission should appear in your paycheck promptly. New York has strong laws requiring timely payment of wages. Commissioned employees must be paid at least once per month for commissions they’ve earned. Your employer can’t repeatedly push off paying you with excuses like “We’ll include it in the next paycheck” or “The budget is tight this quarter.” It must be paid on schedule if you’ve met the conditions to earn your pay. A classic example from the private sector is an employer saying, “The client hasn’t paid us yet, so we can’t pay your commission now.” That’s not a valid excuse – your right to timely pay isn’t negated by your employer’s cash-flow issues. In the public sector, while outright commission-based pay is less common, you might have incentive pay or overtime payments that get “backlogged.” If your overtime or differential pay consistently arrives weeks or months late, or if a promised stipend never shows up, you’re encountering potential wage theft. Always keep track of what you’re owed (such as logging your earned overtime or bonus) and note if paydays come and go without the proper compensation. Delayed wages beyond the next pay cycle violate New York wage laws, so an unexplained delay is a serious warning sign.

Withheld Pay After Leaving a Job

Wage theft can also occur at the end of employment. If you’ve retired, transferred, or left your public-sector job (or any job in New York) and your former employer refuses to pay you for time you already worked, this is illegal. All earned wages must be paid even after you leave a job – quitting or being terminated does not forfeit the pay you’ve earned. For example, say you resigned from a city agency job with unused comp time or overtime that was worked in your final pay period. If that final paycheck is missing those hours, your employer cannot legally withhold it because you’re no longer there. Similarly, some employers might try to withhold a last commission check or accrued vacation payout out of spite or as leverage (like pressuring you to sign a liability release in exchange for your check). New York courts have little patience for such tactics. If your final paycheck is short, or you’re told that your remaining pay will not be issued, consider it a glaring sign of wage theft. In these cases, you can recover those unpaid wages through legal channels. The New York law is clear: your employer must pay what you earn, regardless of your employment status. If they don’t, you may need to speak with a New York employment lawyer or file a complaint to get the wages you’re owed.

Misclassification to Avoid Paying Overtime

Sometimes, wage theft isn’t immediately apparent on your paycheck—it can be hidden behind your job title or classification. Misclassification is when an employer labels you as a type of worker who isn’t owed overtime or certain benefits when, in reality, you should be. An example is being told you’re a salaried exempt” employee (not eligible for overtime) or an “independent contractor,” even though your duties and work conditions don’t meet the legal criteria for that status. Employers might do this to avoid paying overtime or payroll taxes. In New York, job titles alone do not determine overtime eligibility – your actual job duties and salary do. Only specific categories (like certain executives, professionals, or administrative roles) are truly exempt from overtime, and they must meet strict tests. You are almost always entitled to overtime pay over 40 hours if you’re paid by the hour. Even many salaried workers are covered by overtime laws, especially if they earn below a particular weekly amount (around $1,300 per week as of 2024). A telltale sign of misclassification is if you and colleagues perform the same work, but some of you are classified as overtime-eligible and others are not, without a clear difference in job responsibilities. Or perhaps you’ve been given a managerial title in name only (“assistant manager” with no real management duties) just so the employer can say you’re exempt. If you suspect this, it’s a form of wage theft because you’re likely being denied overtime pay you legally deserve. 

Improper classification can also affect public employees – e.g. being labeled a contractor when you serve in a regular staff role. Such misclassifications are common violations that cheat workers out of wages. The bottom line: if your paycheck doesn’t include overtime you believe you earned, don’t accept “But you’re salaried/exempt” as gospel until you verify that status under the law. Consulting a New York wage and hour law lawyer or checking with HR to review your classification may be worth it.

Illegal Paycheck Deductions or Reductions

Have you ever noticed odd or excessive deductions on your pay stub? Has your pay been reduced as a “penalty”? Employers in New York are tightly restricted in what they can deduct from your wages. Aside from standard withholdings (taxes, Social Security, or things you authorize like union dues or retirement contributions), almost any other deduction must be legally allowed. If your employer docks your pay to cover something like a broken piece of equipment, a cash register shortage, or a customer not paying a bill, that’s generally illegal. New York Labor Law §193 forbids unauthorized deductions from wages. For example, if an expensive tool goes missing on your shift, your agency cannot simply take the cost out of your paycheck – not without your consent and not beyond what the law permits. Similarly, if you earn commissions or bonuses, your employer can’t claw them back or deduct company losses from them later. 

The risk of business losses (like a client who doesn’t pay their invoice) is on the employer, not your earned wages. Another form of illegal deduction requires employees to pay for uniforms or job-related purchases out of pocket, effectively bringing your pay below minimum wage – a practice that violates wage laws. In short, if your check is lighter because your employer is subtracting the costs of doing business or imposing fines on you, this is a strong sign of wage theft. Always review your pay stubs. Public-sector workers should know that even government employers must follow these rules – being a state or city entity doesn’t give an agency a pass to ignore wage and hour law. Unapproved paycheck deductions or unexplained reductions in your pay can and should be challenged.

What to Do if You Suspect Wage Theft

Discovering any of the above issues can be frustrating or scary, but remember: you have rights and options. Here are steps to take if you suspect you’re a victim of wage theft in New York’s public sector (or anywhere in New York):

  1. Document Your Work and Pay – Start by gathering evidence. Save copies of pay stubs, timesheets, schedules, and any other records of the hours you worked and what you were paid. Log those extra hours if you work through breaks or outside regular hours. Also, save emails or messages related to your pay or hours (for example, instructions to work late or any complaints you raised about pay). This documentation is crucial to prove the gap between what you worked and what you were paid. If you have a contract or offer letter, keep that handy, too – it might outline your wage rate, overtime eligibility, or commission terms.

  2. Know Your Rights and Employment Status – Determining whether you should get certain pay is important. Review whether your job is entitled to overtime or other wages by law. Most hourly workers are non-exempt (overtime-eligible), and many salaried workers in New York are as well unless they truly meet the criteria for exemption. If you’re told you’re not eligible for overtime, understand why. Sometimes, employers misclassify workers as discussed above – for instance, labeling a regular employee as an independent contractor or giving an improper exemption. Check resources (like the New York Department of Labor website) or consult an employment lawyer in NYC if unsure about your status. Similarly, if you’re missing a commission or bonus, review your commission agreement or offer letter to confirm when and how those payments are earned. Knowing the rules that apply to your job will strengthen your case when confronting the issue.

  3. Raise the Issue Internally (If Safe) – Before escalating the matter, you might talk to your employer, supervisor, or HR department about the discrepancy – if you feel comfortable doing so. Sometimes, a missing payment can be a clerical mistake that the employer will correct when alerted. When you raise the issue, be polite but firm. For example, you can say: “I noticed I wasn’t paid for X hours/bonus. Could we look into this? I have my records showing I worked those hours.” It’s wise to put your inquiry in writing (such as an email) or follow up any conversation with an email summary so you have a record of it. This creates a paper trail showing you asked for your wages. Many public-sector employees also have the option of involving a union representative or payroll department in these discussions. Importantly, know that retaliation is illegal: your employer (public or private) cannot fire, demote, or punish you for asking about or reporting unpaid wages. New York law explicitly protects workers who speak up about wage theft, so don’t let fear of retaliation stop you from voicing your concerns. (If you do experience pushback or threats for coming forward, that could be another legal violation on the employer’s part.)

  4. File a Wage Complaint with the Government – If your employer ignores or refuses to resolve the issue, or if you’re uncomfortable raising it internally, you have the right to file an official complaint. New York’s Department of Labor (DOL) has a process for workers (including public employees in many cases) to claim unpaid wages or overtime. You’ll need to fill out a form (available online or at DOL offices) describing the wage theft – for example, the overtime hours not paid or wages missing. The DOL will investigate your claim. They can inspect payroll records, question the employer, and order the employer to pay what’s owed plus penalties if they confirm a violation. The U.S. Department of Labor’s Wage and Hour Division is another avenue, especially if your case involves federal law (like FLSA overtime rules). Filing with a government agency can be effective, and it doesn’t cost you money. Be mindful of timing: The New York DOL generally allows you to recover up to 3 years of back wages via a complaint. If the wage theft occurred longer ago than that, or if the amount is large, you might need to consider the next step, which can have a longer look-back period.

  5. Consult a New York Employment Lawyer – Speaking with a New York wage theft attorney early is often wise, especially for complex or significant cases. An experienced lawyer focusing on wage and hour law can evaluate your situation and advise you on the best action. They might suggest continuing with the DOL process or recommend filing a lawsuit to recover your wages (sometimes, a lawsuit can cover up to six years of unpaid salaries in New York, thanks to a longer statute of limitations). A lawyer will help calculate what you’re owed – including unpaid wages, interest, and potentially additional damages. Importantly, if your employer willfully underpaid you, New York and federal laws often allow you to recover “liquidated damages,” a penalty equal to 100% of the unpaid wages on top of the original amount owed. In other words, you could get double what was stolen as compensation. An attorney can also advise if your case qualifies for your employer to pay your legal fees. Many New York employment lawyers (including our firm) offer free initial consultations so you can discuss your case at no cost. They can walk you through the process, whether that’s helping with a DOL claim or filing a lawsuit on your behalf. Having a lawyer in your corner can take the pressure off you – once an attorney is involved, the employer knows you mean business. Consulting a lawyer gives you the best chance to maximize your recovery and protect your rights.

By following these steps, you’ll be well-prepared to address wage theft. Acting sooner rather than later is important – not only to meet any deadlines for claims but also to prevent ongoing losses. Every day that wage theft continues is money out of your pocket. Whether you resolve it through your HR department or with legal action, standing up for your rights is both justified and often successful. Remember, New York’s wage and hour laws are there to protect you, and even public-sector employers must obey these laws.

Why Working with a New York Employment Lawyer Matters

Hiring a lawyer for a wage theft issue is highly recommended. While some minor wage disputes can be resolved informally, many cases benefit significantly from professional legal help. Here’s why working with a New York employment lawyer can make a huge difference in a wage theft case:

  • Skilled experience in Wage and Hour Law: Wage rules can be complex. A seasoned attorney understands the Fair Labor Standards Act (FLSA), New York Labor Law, and all the applicable regulations to your case. They can quickly determine if your rights were violated and calculate how much you’re owed, including any penalties. For example, lawyers know about misclassification, “off-the-clock” work, or unlawful deductions that a layperson might miss. This experience ensures that no part of your claim is overlooked.

  • Handling the Legal Process: If you decide to file a complaint with the DOL or a lawsuit, there are procedures, paperwork, and deadlines to manage. Missing a detail could cost you your claim. An employment lawyer handles all the legal formalities for you – drafting the complaint, filing documents on time, and communicating with the employer (or their lawyers) on your behalf. This is especially helpful if your employer is uncooperative or tries to stonewall you. Once you have a lawyer, the employer will take your claim seriously.

  • Maximizing Your Compensation: An employment lawyer aims to get you every dollar you’re owed – and more if the law allows. They will not only seek your unpaid wages but also any additional damages. Under New York law, you can often recover liquidated damages equal to the unpaid wages (100% extra) for willful violations, plus interest for the delay. Many wage theft victims aren’t aware of these extra amounts. A good lawyer will include them in your claim so you’re fully compensated. Moreover, employment laws usually require the employer to cover your attorney’s fees if you win, meaning legal help might cost you nothing out-of-pocket.

  • Protection and Peace of Mind: Having an attorney means you don’t have to navigate this situation alone. If you’re worried about retaliation or unsure how to talk to your boss about unpaid wages, your lawyer can advise you on what to say or even communicate on your behalf. Should your employer propose a settlement or payoff, your attorney can evaluate if it’s fair. Essentially, a lawyer is your advocate and shield – they look out for your interests so you can focus on your job or your family instead of stressing over legal details.

  • Free Consultations and Contingency Fees: Many New York wage theft attorneys offer a free initial consultation and work on a contingency fee basis. This means they only get paid if you recover money. You can get a professional legal opinion on your situation at no cost. There’s no downside to speaking with a lawyer to understand your options. Even if you ultimately proceed through a government agency or handle it internally, at least you’ll know your rights and the potential value of your claim.

In sum, while you can start a wage theft claim independently, having an experienced employment lawyer on your side often leads to a faster and fuller recovery. They bring legal know-how, handle the heavy lifting, and give you confidence that your case is being handled correctly.

Frequently Asked Questions about Wage Theft in New York’s Public Sector

  1. How do I know if I’m a victim of wage theft?

Wage theft happens when you aren’t paid fully for your work. Common signs include unpaid overtime, missing hours on paychecks, denied bonuses or commissions, or improper deductions. In New York, frequent late payments or excuses for underpayment are also red flags. If this sounds familiar, start documenting and speak with a New York employment lawyer.

  1. Do New York’s overtime laws apply to public-sector employees?

Yes. Most public-sector employees in New York are covered by the same overtime laws as private workers. If you’re non-exempt, you’re entitled to time-and-a-half for over 40 hours a week. Some agencies offer comp time instead, but it must be at the correct rate and agreed upon. Even salaried public employees may still qualify for overtime, depending on duties and pay level.

  1. What should I do if my employer isn’t paying me all my wages?

Document your hours, pay stubs, and what’s missing. Then, raise the issue with HR, payroll, or your supervisor. If that doesn’t resolve it, file a complaint with the New York Department of Labor or the U.S. DOL. You can also consult an employment attorney. Don’t wait too long—New York allows up to 6 years to sue, but federal timelines are shorter.

  1. What can I recover if I prove wage theft?

You can recover all unpaid wages, plus potentially double that amount in “liquidated damages.” You may also get interest, legal fees, and court costs. New York law strongly favors workers, so consult a lawyer to assess your full claim.

  1. Can I be punished or fired for reporting wage theft?

No. It’s illegal for employers to retaliate for reporting wage theft. Retaliation includes firing, demotion, reduced hours, or harassment. If it happens, report it to your lawyer or the DOL. Retaliation is a separate violation and can strengthen your case.

Work with a Wage Theft Lawyer 

Wage theft is a violation of trust and fairness, whether it happens in a private company or a public agency. As a New York public-sector employee, you dedicate your time and skills to serving the community – you deserve to be paid every cent you’ve earned. If you suspect you’ve been underpaid or mistreated regarding wages, don’t brush it off. Speaking with a New York employment lawyer cannot be overstated. An experienced attorney will help ensure that your case is taken seriously and that you explore every avenue to recover your unpaid wages. 

Taking action not only helps you personally but also upholds the standards of your workplace for everyone. Remember, wage laws exist to protect you. Legal professionals, like our team at Kessler Matura P.C., are ready to support you. Don’t hesitate to stand up for your rights – by doing so, you hold employers accountable and help end wage theft in New York’s workplaces. If you’re facing a wage issue, consider contacting me for a free consultation. You’ve worked hard for your money; let us help you regain it.

Our employment attorneys at Kessler Matura P.C. have helped countless employees secure their rightfully earned wages. Don’t let employers take advantage of your hard work. Call us at 631-499-9100 or contact us today for a confidential consultation, and let’s take the first step toward recovering what you’re owed.