Your Unpaid Wage Victory Just Got Stronger – Here’s What You Need to Know
You’ve already fought hard and won your wage theft case, but your employer still hasn’t paid up. The frustration of waiting for money that’s rightfully yours can feel overwhelming, especially when bills keep coming and your employer seems to be dragging their feet. Here’s something powerful that many workers don’t realize: New York law is on your side with an automatic 15% increase to your judgment after 90 days. This significant penalty exists specifically to pressure employers into paying what they owe and to compensate you for the additional hardship of waiting.
If you’re holding an unpaid wage judgment, you’re not alone in this struggle. Many workers across Suffolk County face similar challenges with employers who refuse to pay even after losing in court. The good news is that New York State has built strong protections into the law to ensure workers get every dollar they’re owed – plus additional compensation for the delay. Understanding these protections and how to enforce them can make the difference between continuing to wait and finally getting paid.
💡 Pro Tip: Mark your calendar for exactly 90 days after your judgment was issued. This is when your judgment automatically increases by 15%, giving you significant additional leverage in collection efforts.
Understanding Your Rights Under New York’s Powerful Wage Theft Laws
New York State has some of the strongest wage protection laws in the country, and the automatic 15% judgment increase is just one example. Under NY Labor Law Section 198, any judgment for unpaid wages that remains unpaid after 90 days following issuance (or 90 days after the time to appeal expires) automatically increases by fifteen percent. This isn’t something you need to file for or request – it happens automatically by operation of law. When working with an unpaid wages lawyer in New York, they can help ensure this increase is properly calculated and enforced against your employer.
Beyond the automatic increase, you have numerous enforcement tools at your disposal. The New York State Department of Labor (NYSDOL) has the authority to levy liens on your employer’s property, seize their financial assets, and even issue stop work orders following an unpaid wage theft judgment. These enforcement mechanisms show how seriously New York takes wage theft. Additionally, under the Fair Labor Standards Act (FLSA), employers who intentionally or repeatedly violate wage laws face civil monetary penalties for each violation, adding another layer of accountability.
Your rights extend beyond just collecting the original judgment amount. If your employer agreed to provide certain benefits or wage supplements and failed to do so, they may have committed a misdemeanor under New York law. Furthermore, if they retaliate against you for pursuing your wages, they face penalties of $10,000 per violation plus damages and liquidated damages up to another $10,000. These protections ensure that employers can’t intimidate workers out of collecting what they’re legally owed.
💡 Pro Tip: Document every attempt to collect your judgment and any communication with your employer. This creates a paper trail that can support additional enforcement actions if needed.
The 90-Day Clock: Critical Deadlines and What Happens Next
Understanding the timeline for your judgment enforcement is crucial for maximizing your recovery. The 90-day period begins either from the date your judgment was issued or from when the time to appeal expires – whichever is later. This distinction matters because if your employer filed an appeal, the clock doesn’t start until that appeal period ends. During this initial 90-day window, many employers will pay to avoid the automatic 15% increase, making this a critical period for collection efforts.
Remember that the statute of limitations for wage claims in New York is six years, giving you substantial time to pursue collection. However, acting quickly is always better. The sooner you begin enforcement efforts with your unpaid wages lawyer in New York, the more likely you are to collect before your employer’s financial situation changes or assets become harder to locate.
💡 Pro Tip: File a judgment lien with the county clerk’s office as soon as possible. This prevents your employer from selling property without paying you first and creates public pressure for payment.
Turning Your Judgment Into Real Money – Collection Strategies That Work
Having a judgment is only half the battle – collecting on it requires strategic action. The Department of Labor’s enforcement powers provide multiple paths to recovery. Bank levies allow you to freeze and seize funds directly from your employer’s accounts, while wage garnishments can intercept payments they receive from clients or customers. Property liens ensure you’ll be paid if they try to sell real estate or other assets. An experienced unpaid wages lawyer in New York can coordinate these efforts to maximize your chances of full recovery, especially once the 15% increase takes effect.
Don’t overlook the power of public records and business pressure. Unpaid judgments appear on credit reports and can affect your employer’s ability to get loans or conduct business. Stop work orders from NYSDOL can shut down operations entirely until wages are paid. These consequences become more severe after the 90-day mark when the judgment increases by 15%, making it clear that delay only makes things worse for the employer. Your unpaid wages lawyer in New York can help coordinate these various pressure points to achieve the fastest possible payment.
💡 Pro Tip: Consider offering a slight discount for immediate payment before the 90-day mark. Sometimes accepting 95% now is better than chasing 115% later, depending on your financial needs and the employer’s assets.
Hidden Assets and Advanced Collection Techniques
Many employers try to hide assets or claim they can’t pay, but experienced attorneys know where to look. Business bank accounts are just the beginning – employers often have accounts receivable, equipment, inventory, and real estate that can be seized to satisfy judgments. Some maintain personal assets that can be reached if they’ve commingled funds or failed to maintain proper corporate formalities. An unpaid wages lawyer in New York will investigate all possible sources of recovery, especially important given the higher amount owed after the 15% increase kicks in.
Piercing the Corporate Veil
When employers use their business structure to avoid paying wages, courts can hold individual owners personally liable. This is particularly common with small businesses in Melville where owners treat company funds as their personal piggy bank. If your employer transferred assets out of the business, paid themselves while claiming inability to pay wages, or failed to maintain proper corporate records, you may be able to pursue their personal assets. The 15% automatic increase applies regardless of whether you’re collecting from the business or its owners personally.
💡 Pro Tip: Request your employer’s bank records through post-judgment discovery. This can reveal hidden accounts, improper transfers, and other assets you didn’t know existed.
Multi-State Asset Recovery
Even though Labor Standards cannot accept claims for wages earned outside New York State, once you have a New York judgment, you can enforce it against assets anywhere. If your employer has property in New Jersey or bank accounts in Connecticut, these can potentially be reached through a process called domesticating your judgment. The 15% increase makes this extra effort more worthwhile, as you’re now pursuing a significantly larger sum.
💡 Pro Tip: Check if your employer owns vehicles, boats, or aircraft. These assets are often overlooked but can be seized and sold to satisfy wage judgments.
Protecting Yourself From Employer Retaliation
Some employers become vindictive when forced to pay wage judgments, but New York law provides strong protection against retaliation. Employers who retaliate face penalties of $10,000 per violation plus damages and liquidated damages up to another $10,000. This applies whether they retaliate through termination, reduction of hours, negative references, or any other adverse action. These penalties are in addition to your wage judgment and its 15% increase.
Recognizing Subtle Forms of Retaliation
Retaliation isn’t always obvious. Employers might suddenly find “performance issues,” change your schedule to conflict with other obligations, or create a hostile work environment hoping you’ll quit. Document everything – emails, text messages, schedule changes, and witness statements. If you’re still employed by the judgment debtor, consider whether pursuing aggressive collection might trigger retaliation, and discuss protective strategies with your unpaid wages lawyer in New York.
💡 Pro Tip: File a retaliation complaint with NYSDOL at the first sign of adverse action. Quick reporting strengthens your case and may prevent escalation.
Turning Retaliation Into Additional Recovery
Ironically, employer retaliation can significantly increase your total recovery. With potential penalties of $20,000 per violation plus your actual damages, a single act of retaliation could double or triple what you collect. Some employers don’t realize that retaliating against workers who’ve won wage judgments is a separate violation with its own severe penalties. This makes retaliation not just illegal but financially catastrophic for employers.
💡 Pro Tip: Keep working normally and professionally while pursuing your judgment. This makes any retaliation clearly unlawful and harder for the employer to justify.
Special Considerations for Different Types of Workers
Not all wage theft cases are the same, and different types of workers have unique considerations when enforcing judgments. Fast-food workers in New York City enjoy special protections including just cause requirements for termination or hours reduction exceeding 15%. Retail workers must receive 72 hours advance notice of schedules. Employees in factories, stores, hotels, and restaurants are entitled to 24 consecutive hours of rest each week. Understanding your specific rights helps maximize recovery.
Liquidated Damages and Multiplying Your Recovery
Beyond the 15% automatic increase, you may be entitled to liquidated damages equal to 100% of unpaid wages, or up to 300% for willful violations of equal pay laws. If your original judgment didn’t include these damages, consult with an employee rights attorney about whether you can amend your judgment or file additional claims. The combination of liquidated damages and the 15% increase can result in substantial recovery beyond your original unpaid wages.
💡 Pro Tip: Review your original judgment carefully. If liquidated damages weren’t included, you might have grounds for additional legal action.
Small Business vs. Large Corporation Collection Strategies
Collecting from a small business requires different tactics than pursuing a large corporation. Small businesses often have fewer assets but may be more vulnerable to stop work orders and business disruption. Large corporations have more assets but also more sophisticated legal teams. Your unpaid wages attorney can tailor collection strategies based on your employer’s size and structure, always keeping in mind that the 15% increase applies regardless of business size.
💡 Pro Tip: For small businesses, timing collection efforts around their busy season or major contracts can increase payment likelihood.
Frequently Asked Questions
Common Questions About the 15% Automatic Increase
Workers with unpaid wage judgments often have similar concerns about the enforcement process and the automatic increase provision. Understanding these details helps you make informed decisions about your collection strategy.
💡 Pro Tip: Write down all your questions before consulting with an attorney. This ensures you get complete information during your consultation.
Next Steps After Your Judgment Increases
Once the 90-day period passes and your judgment increases by 15%, you’ll need to take specific steps to collect the enhanced amount. Knowing what to expect helps you move forward confidently.
💡 Pro Tip: Calculate the exact date your judgment increases and be ready to act immediately with updated collection documents reflecting the new amount.
1. Does the 15% increase apply automatically, or do I need to file something with the court?
The 15% increase is completely automatic under NY Labor Law Section 198. You don’t need to file any motions or paperwork – the law operates automatically once 90 days pass after judgment issuance or after the appeal period expires. However, you should calculate the new amount and may want to file an updated judgment to reflect the increase for collection purposes.
2. What if my employer filed for bankruptcy after my wage judgment?
Wage claims often have priority in bankruptcy proceedings, meaning you get paid before many other creditors. The 15% increase still applies to your claim amount. Consult with a New York unpaid wages legal help professional immediately, as bankruptcy creates strict deadlines for filing claims and protecting your rights as a wage claimant.
3. Can I collect the 15% increase if my employer is located outside New York?
If your judgment was issued by a New York court for work performed in New York, the 15% increase applies regardless of where your employer is located. You may need to domesticate your judgment in the employer’s state to collect, but the increased amount remains valid. A Melville NY Unpaid Wages lawsuit attorney can help navigate multi-state collection.
4. How long do I have to collect my judgment after it increases by 15%?
New York judgments are valid for 20 years and can be renewed. The six-year statute of limitations applies to filing wage claims, not collecting judgments. You have substantial time to pursue collection, but acting quickly is always better as assets can disappear and businesses can close.
5. What happens if my employer pays the original amount but refuses to pay the 15% increase?
The 15% increase is mandatory, not optional. If your employer pays only the original judgment amount after 90 days, they still owe the additional 15%. You can pursue collection of the remaining balance through the same enforcement mechanisms – liens, levies, and garnishments. Many employers try this tactic, but the law is clear that the full increased amount must be paid.
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Enforcing a wage judgment requires persistence, strategy, and knowledge of both New York state law and federal protections. While you have the right to pursue collection on your own, the complexity of enforcement procedures and the potential for employer gamesmanship make professional legal assistance valuable. An attorney experienced in wage and hour law understands how to leverage the 15% automatic increase, coordinate multiple collection efforts, and respond to employer tactics designed to avoid payment. They can also identify additional claims you might have missed, such as liquidated damages or retaliation penalties, potentially multiplying your recovery beyond the original judgment amount.
