General Employment Law

How to Handle Wage Withholding or Unpaid Wages as a New York Employee

When you work hard for your paycheck, you expect to receive the money you have earned. Unfortunately, some employees discover that their paychecks are short, overtime is missing, or their employer has made deductions they do not understand. If this happens to you, knowing your rights under New York law can help you determine what to do next.

Understanding Wage Withholding and Unpaid Wages

Before addressing problems with wages, it’s important to understand that wage withholding is not always illegal. Certain deductions, including required tax payments and court-ordered garnishments, can be perfectly legal.

Problems arise when an employer fails to pay earned wages, makes unauthorized deductions, or withholds money in violation of applicable wage laws. New York Labor Law protects you in these situations. Understanding the difference can help you recognize when something may be wrong.

Common Wage Violations in New York

Unpaid wages can take several forms. Your employer might fail to pay you for all the hours you worked, withhold overtime pay you are entitled to receive, or fail to provide compensation you earned under an agreement.

New York Labor Law Section 193 generally prohibits employers from making unauthorized deductions from employee wages. For example, an employer generally cannot deduct money from your paycheck to cover ordinary business losses, cash shortages, or damaged equipment simply because you were involved in the situation.

Another common issue that arises related to pay is overtime violations. Unless your arrangement exempts you from overtime pay, you are entitled to OT if you work more than 40 hours in a week. It’s also illegal to misclassify you as a salaried employee to avoid paying you for overtime hours.

What Should You Do if Your Paycheck Is Wrong?

Make sure you review each pay stub and look for potential problems.

Red flags can include:

  • Missing hours
  • Incorrect overtime calculations
  • Unexpected deductions
  • Payments that do not match what your employer promised

If you detect an issue, speak to your employer. If they can’t justify the issue and explain why your paycheck is correct, you may be able to file a wage complaint with the New York State Department of Labor or pursue a claim in court. An employment attorney can help you understand which options may apply to your circumstances.

Frequently Asked Questions

Can my employer withhold my paycheck because of a mistake I made?

Generally, an employer cannot simply withhold earned wages to punish you for a mistake or recover ordinary business losses. Whether a particular deduction is lawful depends on the circumstances and applicable law.

What if my employer owes me overtime pay?

Many employees are entitled to overtime pay for hours performed past 40 in a workweek, although exemptions apply to certain positions. An attorney can review your job duties, compensation, and hours to help determine whether you may be owed overtime.

What if my employer retaliates after I complain about unpaid wages?

New York Labor Law Section 215 generally prohibits employers from retaliating against employees for making protected complaints about labor law violations. If your employer threatens you, cuts your hours, or takes other adverse action after you raise a wage concern, document what happened and consider seeking legal advice.

Get Help With a Wage Dispute

You should not have to guess whether your employer is paying you correctly. If you believe there’s a problem with your wages and your employer hasn’t fixed the issue, we can help. Contact Borrelli & Associates, P.L.L.C., to discuss your situation.

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