New York's Wage Theft Protection Act
The New York State Legislature just passed the Wage Theft Protection Act and it will become law once Governor Patterson signs the bill. This new law will provide New Yorkers with greater protection from overtime pay and minimum wage violations. Under the Wage Theft Protection Act, an employer can be forced to pay wronged workers twice the amount that was due as well as other penalties and legal fees.
New York is not the only state on the bandwagon against wage piracy. Last summer Illinois passed a similar law and Washington State, Massachusetts and New Mexico have toughened their wage theft laws.
Why are these laws being passed? Why suddenly do politicians care about these long standing employee abuses? The reason is that governments are now strapped for funds and these wage violations also short the government on tax revenues. By forcing companies to pay all that is due to workers they also increase tax revenue.
A recent study has also helped raise awareness. The study showed that each week New York workers lose 18.4 million in unpaid overtime pay and minimum wages or about one billion a year. Worse, the average low wage worker loses $2600 a year in unpaid overtime pay or about 15 percent of their yearly income. Moreover, 75% of those who work overtime are not paid the required overtime pay premium equal to time and a half and 69% of workers don't get meal breaks.
New York's new Wage Theft Protection Act sounds like a good solution but don't be fooled. Remember, laws are just words on the books - they don't really mean anything unless they are vigorously enforced. For example, employment discrimination has been illegal since the 1960's but employment discrimination is still rampant. In my view, the laws need to be dramatically improved in favor of workers so that the unpaid overtime pay is immediately taken from the accused employer and held in trust for the worker until the case is concluded. Companies need to feel the pain immediately. Now, these cases linger for years and the company is allowed to keep the unpaid wages while the case plods on. Worse, the amount owed is usually negotiated down during the process such that the employer often gets off paying less than what was owed and they get to keep the unpaid wages for years. I am glad that NY has passed the Wage Theft Protection Act, but it is not enough.
