Free Evaluation
Free Evaluation

How Do I Recover Unpaid Wages in New York?

You can recover unpaid wages in New York by filing a claim with the New York Department of Labor or by filing a lawsuit. You can go back 6 years for most wage claims—the longest period in the nation. New York law provides for liquidated damages that double your recovery, plus interest and attorney’s fees.

If your employer owes you wages, you have strong legal tools to recover what you’re owed.

Why New York’s Unpaid Wage Laws Matter

Wage theft is one of the most common employment law violations. Employers fail to pay earned wages through various means: unpaid overtime, off-the-clock work, missed meal breaks, improper deductions, or simply not paying at all.

New York provides some of the nation’s strongest protections for workers seeking unpaid wages. The 6-year statute of limitations and automatic liquidated damages (doubling) make New York law significantly more favorable to workers than federal law.

Understanding your rights helps you recognize when you’re owed money and take action to recover it.

What Counts as Unpaid Wages?

Unpaid wages include any compensation your employer owes you for work performed:

Common types of unpaid wages:

  • Regular wages for hours worked
  • Overtime pay (1.5x for hours over 40 per week)
  • Minimum wage shortfalls
  • Spread-of-hours pay (unique to NY)
  • Commissions that were earned but not paid
  • Bonuses that were promised or earned
  • Vacation or PTO pay (if your employer’s policy requires payout)
  • Final paycheck amounts
  • Unpaid training time
  • Off-the-clock work
  • Meal breaks worked but not paid

Example: Maria worked 50 hours per week for two years but only received straight-time pay. She’s owed overtime pay for 10 hours weekly × 104 weeks. At $20/hour, her overtime rate is $30/hour. She’s owed 1,040 hours × $10/hour (the extra half-time) = $10,400 in unpaid wages.

New York’s 6-Year Statute of Limitations

New York gives you 6 years to file most wage claims. This is the longest statute of limitations in the country for wage violations.

Comparison:

Law Statute of Limitations
New York Labor Law 6 years for most claims
Federal FLSA 2 years (3 years if willful)
California 3-4 years depending on claim type
Texas 2 years

Why this matters: You can recover wages from far in the past under New York law. Even if the federal deadline has passed, you may still have a claim under state law.

Example: Tom discovers in 2025 that his employer hasn’t paid him spread-of-hours pay since 2019. Under federal law, he could only go back 2-3 years (to 2022 or 2023). Under New York law, he can recover all the way back to 2019—6 full years of unpaid wages.

Important considerations:

  • The clock starts when wages were due, not when you discover the violation
  • Each paycheck creates a new violation with its own 6-year deadline
  • Some specific claims may have different deadlines
  • Don’t wait to file—documentation becomes harder to obtain over time

Liquidated Damages: Doubling Your Recovery

New York law provides for liquidated damages equal to 100% of your unpaid wages. This effectively doubles your recovery.

How it works:

  • You prove your employer owes you wages
  • You receive the unpaid amount (back pay)
  • You also receive an equal amount in liquidated damages
  • Total: 200% of unpaid wages

Example: If your employer owes you $15,000 in unpaid overtime, you can recover:

  • $15,000 in back wages
  • $15,000 in liquidated damages
  • Plus interest
  • Plus attorney’s fees if you hire a lawyer
  • Total: $30,000+

When liquidated damages don’t apply: Employers can avoid liquidated damages only by proving they acted in “good faith” and had “reasonable grounds” to believe they were complying with the law. This defense rarely succeeds.

Willful violations: If your employer knowingly violated wage laws, liquidated damages are virtually automatic. Even negligent violations typically result in liquidated damages.

This doubling provision serves two purposes:

  1. Compensation: Recognizing that you’ve been deprived of wages and may have incurred damages beyond the wage amount
  2. Deterrence: Making wage violations expensive to discourage employers from taking advantage of workers

Additional Damages and Penalties

Beyond back pay and liquidated damages, you can recover:

Prejudgment Interest

Interest accrues on unpaid wages from the date they were due until judgment. New York’s prejudgment interest rate is 9% per year.

Example: If you’re owed $10,000 in unpaid wages from 3 years ago, you could recover approximately $2,700 in prejudgment interest (9% × $10,000 × 3 years).

This amount is in addition to back wages and liquidated damages.

Attorney’s Fees and Costs

If you hire an attorney and win your case, your employer typically must pay your attorney’s fees and litigation costs. This means:

  • You can afford to hire a lawyer even for smaller claims
  • Many employment lawyers work on contingency (only paid if you win)
  • Your recovery isn’t reduced by legal fees

Example: You hire a lawyer to recover $8,000 in unpaid wages. Your lawyer’s fees are $5,000. You recover:

  • $8,000 back wages
  • $8,000 liquidated damages
  • $2,160 interest
  • $5,000 attorney’s fees paid by your employer
  • You receive $18,160, and your employer pays an additional $5,000 to your lawyer

Civil Penalties (Paid to the State)

The New York Department of Labor can impose civil penalties on employers who violate wage laws. These penalties go to the state, not to you, but they help enforce compliance.

Penalties can be substantial:

  • First violations: Up to $1,000 per violation
  • Repeat violations: Up to $2,000 per violation
  • Willful violations: Higher penalties

Criminal Penalties (Rare)

In extreme cases of wage theft, employers can face criminal charges. This is rare and typically reserved for:

  • Large-scale wage theft
  • Repeated violations after warnings
  • Fraudulent schemes

Criminal penalties don’t affect your civil recovery but can provide additional accountability.

How to File a Wage Claim in New York

You have two main options for recovering unpaid wages:

Option 1: File with the New York Department of Labor (NYDOL)

Advantages:

  • Free to file
  • No lawyer required
  • NYDOL investigates for you
  • Faster for straightforward claims
  • Good for smaller amounts

Disadvantages:

  • Slower for complex cases
  • Less control over the process
  • May recover less than in a lawsuit
  • Limited discovery (obtaining evidence)

How to file:

Step 1 – Gather documentation:

  • Pay stubs
  • Time records or your own log of hours worked
  • Schedules
  • Any written communications about pay or hours
  • Job description
  • Company policies

Step 2 – Complete the complaint form:

  • Visit dol.ny.gov
  • Download form LS 223 (Complaint for Wage Theft)
  • Or file online through the NYDOL portal
  • Provide details about your employment and the wages owed

Step 3 – Submit your claim:

  • File online (fastest)
  • Mail to the appropriate NYDOL office
  • Keep copies of everything you submit

Step 4 – Investigation:

  • NYDOL contacts your employer
  • They may request additional documentation
  • They may hold a hearing
  • This process can take several months to over a year

Step 5 – Resolution:

  • If NYDOL finds violations, they issue an order requiring payment
  • They can assess penalties
  • If your employer doesn’t pay, NYDOL can help with collection

Option 2: File a Lawsuit

Advantages:

  • More control over your case
  • Better for complex or large claims
  • Full discovery process
  • Potentially faster settlement
  • Can include multiple claims (wage theft, retaliation, etc.)

Disadvantages:

  • Need to hire a lawyer (though many work on contingency)
  • More formal process
  • May take longer if it goes to trial

How to file:

Step 1 – Consult employment lawyers:

  • Many offer free consultations
  • They evaluate your claim
  • They explain potential recovery
  • Most work on contingency (no upfront fees)

Step 2 – Choose representation:

  • Hire a lawyer you trust
  • Sign a contingency fee agreement (typically 33-40% of recovery)
  • Your lawyer handles the case

Step 3 – Filing and litigation:

  • Your lawyer files a complaint in court
  • Discovery process (obtaining evidence)
  • Negotiations with employer
  • Settlement or trial

Step 4 – Recovery:

  • Most cases settle before trial
  • If you win, you receive back wages, liquidated damages, interest, and costs
  • Your employer pays your attorney’s fees separately

Which Option Is Right for You?

Consider NYDOL if:

  • Your claim is straightforward (unpaid overtime, minimum wage violations)
  • The amount is under $20,000
  • You have good documentation
  • You want a free process

Consider a lawsuit if:

  • Your claim is complex or large
  • You’ve also experienced retaliation or discrimination
  • Your employer is uncooperative
  • You want faster resolution through settlement pressure
  • The amount exceeds $20,000

You can do both: Some workers file with NYDOL first and then hire a lawyer if the NYDOL process doesn’t resolve their claim.

New York vs. Federal Unpaid Wage Claims

You can often file under both New York Labor Law and federal Fair Labor Standards Act (FLSA). Understanding the differences helps you choose the best approach.

Feature New York Labor Law Federal FLSA
Statute of limitations 6 years 2 years (3 if willful)
Liquidated damages Generally automatic (100%) Discretionary (up to 100%)
Minimum wage $15-16/hour $7.25/hour
Overtime threshold 40 hours/week 40 hours/week
Exempt salary threshold $58,458-$62,400/year $43,888/year
Spread-of-hours pay Required (unique to NY) Not required
Agency enforcement NY Dept of Labor US Dept of Labor

Strategy: Most New York workers benefit from filing under both state and federal law. Your lawyer will assess which provides better protection for your situation.

Example: Marcus has unpaid wages from 4 years ago. Federal law only allows him to go back 2-3 years, but New York law allows all 6 years. He files under New York law and recovers twice as much.

Real-World Examples: Recovering Unpaid Wages

Example 1 – Unpaid overtime: Sarah worked as an “assistant manager” at a retail store in Queens, earning $48,000/year. She regularly worked 50-55 hours per week but received no overtime. She was misclassified as exempt. After 3 years, she filed a claim. Recovery:

  • Back wages: $36,000 (estimated unpaid overtime)
  • Liquidated damages: $36,000
  • Interest: $9,720 (9% × 3 years)
  • Attorney’s fees: $15,000 (paid by employer)
  • Total to Sarah: $81,720

Example 2 – Minimum wage violations: Carlos worked at a restaurant in Manhattan for $12/hour when the minimum was $15. He worked 40 hours/week for 2 years. Recovery:

  • Back wages: $6,240 ($3/hour × 40 hours/week × 104 weeks)
  • Liquidated damages: $6,240
  • Interest: $1,123
  • Total: $13,603

Example 3 – Spread-of-hours pay: Jennifer worked split shifts 5 days per week for 4 years at a store in Brooklyn. Her employer never paid spread-of-hours pay ($16/day). Recovery:

  • Back wages: $16,640 ($16 × 5 days × 52 weeks × 4 years)
  • Liquidated damages: $16,640
  • Interest: $5,990
  • Total: $39,270

Example 4 – Off-the-clock work: Marcus was required to arrive 30 minutes early and stay 30 minutes late without pay at his manufacturing job in Buffalo. He worked 50 weeks per year for 3 years at $18/hour. Recovery:

  • Back wages: $13,500 (5 hours/week × 50 weeks × 3 years × $18)
  • Liquidated damages: $13,500
  • Interest: $3,645
  • Total: $30,645

Example 5 – Unpaid commissions: Lisa earned a base salary plus commissions as a sales representative. Her employer failed to pay $25,000 in earned commissions over 2 years. Recovery:

  • Back wages: $25,000
  • Liquidated damages: $25,000
  • Interest: $4,500
  • Attorney’s fees: $12,000 (paid by employer)
  • Total: $54,500 (plus employer pays $12,000 to her attorney)

Example 6 – Misclassified independent contractor: David was labeled an independent contractor but worked set hours at his employer’s location. He should have been an employee earning overtime. After 4 years, he filed a claim for unpaid overtime:

  • Back wages: $52,000
  • Liquidated damages: $52,000
  • Interest: $18,720
  • Total: $122,720

Example 7 – Unpaid final paycheck: Tom’s employer didn’t pay his final paycheck after he quit ($3,200). He filed a claim:

  • Back wages: $3,200
  • Liquidated damages: $3,200
  • Interest: $576
  • Total: $6,976

Example 8 – Multiple violations: Angela worked at a restaurant in Long Island with several violations: below minimum wage, no overtime, no spread-of-hours pay. After 3 years:

  • Minimum wage shortfall: $8,000
  • Unpaid overtime: $22,000
  • Unpaid spread pay: $12,480
  • Total back wages: $42,480
  • Liquidated damages: $42,480
  • Interest: $11,470
  • Total: $96,430

Example 9 – Retaliation damages: Kevin filed a wage claim and was fired in retaliation. He sued for both unpaid wages and wrongful termination:

  • Unpaid wages: $15,000
  • Liquidated damages: $15,000
  • Lost wages from termination: $30,000
  • Emotional distress: $25,000
  • Punitive damages: $40,000
  • Total: $125,000+

Example 10 – Class action: A restaurant chain systematically violated wage laws for 200 employees over 5 years. A class action lawsuit recovered:

  • $2.8 million in back wages
  • $2.8 million in liquidated damages
  • $900,000 in interest
  • $500,000 in attorney’s fees (paid by employer)
  • Average recovery per employee: $28,000+

Example 11 – Tipped wage violations: Jessica bartended in Manhattan. Her employer took tip credits but didn’t properly track tips or make up shortfalls. Over 3 years:

  • Tip credit violations: $18,000
  • Unpaid spread-of-hours pay: $7,800
  • Total back wages: $25,800
  • Liquidated damages: $25,800
  • Interest: $6,966
  • Total: $58,566

Example 12 – Piece rate violations: Robert worked in a garment factory paid per piece. Some weeks his piece rate earnings fell below minimum wage, and he regularly worked over 40 hours without overtime. After 4 years:

  • Minimum wage shortfalls: $12,000
  • Unpaid overtime: $28,000
  • Total back wages: $40,000
  • Liquidated damages: $40,000
  • Interest: $14,400
  • Total: $94,400

Example 13 – Illegal deductions: Monica’s employer deducted $50/week for “uniforms and breakage” that brought her below minimum wage. Over 2 years:

  • Illegal deductions: $5,200
  • Liquidated damages: $5,200
  • Interest: $936
  • Total: $11,336

Example 14 – Training time not paid: A company required 80 hours of unpaid training for new hires. 50 employees filed a collective action:

  • 50 employees × 80 hours × $15/hour = $60,000 back wages
  • Liquidated damages: $60,000
  • Interest: $10,800
  • Attorney’s fees: $35,000 (paid by employer)
  • Total: $130,800 ($2,616 per employee)

Example 15 – Delayed wages: An employer consistently paid workers 2-3 weeks late over 2 years. While the wages were eventually paid, the delay violated wage laws:

  • Liquidated damages for delayed payment: $30,000 (100% of annual wages for affected period)
  • Interest: $5,400
  • Total: $35,400

Common Employer Defenses and Why They Fail

Employers use various defenses to avoid paying unpaid wages. Most fail:

“You’re an independent contractor, not an employee”: Courts look at the actual working relationship, not labels. If you’re misclassified, you’re entitled to employee protections including unpaid wages.

“You’re exempt from overtime”: Exemptions require meeting both salary and duties tests. Job titles don’t determine exemption status.

“You agreed to work for this amount”: You can’t waive your right to minimum wage and overtime. Such agreements are unenforceable.

“You didn’t complain, so you accepted the pay”: Silence doesn’t waive wage rights. You can file a claim years later.

“We’re a small business and can’t afford it”: Business size doesn’t excuse wage violations. All employers must follow wage laws.

“You were a bad employee”: Your job performance doesn’t affect your right to wages for work performed.

“You didn’t track your hours properly”: While documentation helps, you can prove hours worked through testimony, schedules, and other evidence.

“We acted in good faith”: This defense rarely succeeds in avoiding liquidated damages. Employers are responsible for knowing wage laws.

“You worked unauthorized overtime”: Employers must pay for all hours worked, even unauthorized hours. They can discipline you but must still pay you.

“You signed a contract with different terms”: Contracts can’t override wage laws. You’re entitled to at least the legal minimum.

What to Do If Your Employer Owes You Wages

Follow these steps to recover unpaid wages:

1. Calculate what you’re owed:

  • Review all potential violations (overtime, minimum wage, spread-of-hours, etc.)
  • Track hours worked for the past 6 years
  • Calculate the wage difference
  • Don’t worry about perfect accuracy—make your best estimate

2. Gather documentation:

  • Pay stubs (all of them)
  • Time cards or time-tracking records
  • Work schedules
  • Emails or texts about work hours or pay
  • Company handbook or policies
  • Job description
  • Your own log of hours (if you kept one)

3. Create a detailed record:

  • Document what you’re owed by pay period
  • Note the type of violation
  • Calculate the amount per violation
  • Total everything

4. Understand your potential recovery:

  • Back wages (what you calculate you’re owed)
  • × 2 for liquidated damages
    • interest at 9% per year
    • attorney’s fees

5. Decide on your approach:

  • File with NYDOL (free, good for straightforward claims)
  • Hire a lawyer (better for complex or large claims)
  • Many lawyers offer free consultations

6. File your claim within the deadline:

  • You have 6 years for most claims
  • Don’t wait—documentation degrades over time
  • File as soon as you’ve gathered evidence

7. Be prepared for potential retaliation (and know your protections):

  • It’s illegal to retaliate against workers who file wage claims
  • Retaliation includes firing, demotion, hour reductions, or harassment
  • If retaliated against, you have a separate claim worth additional damages

8. Don’t quit before filing (if possible):

  • Current employees often get more credibility
  • You’ll have better access to documentation
  • However, if you’ve already quit, you can still file

Retaliation Protections

New York law strongly prohibits retaliation against workers who:

  • File wage claims
  • Complain about unpaid wages
  • Participate in wage investigations
  • Discuss wages with coworkers

What counts as retaliation:

  • Firing or forcing you to quit
  • Demotion or discipline
  • Reducing hours or pay
  • Hostile treatment
  • Negative references
  • Blacklisting you in the industry

What to do if retaliated against:

  • Document the retaliation
  • File a retaliation complaint with NYDOL
  • Add retaliation claims to your lawsuit
  • Retaliation damages can exceed wage claim damages

Retaliation damages can include:

  • Lost wages from termination
  • Emotional distress
  • Punitive damages
  • Reinstatement to your position
  • Front pay if reinstatement isn’t feasible

Frequently Asked Questions

Can my employer fire me for filing a wage claim?
No. Retaliation is illegal and creates a separate claim worth significant damages.

What if I don’t have documentation?
You can still file a claim. Use your testimony, co-worker testimony, schedules, and any available records. The burden is on your employer to prove they paid you correctly.

Can I file anonymously?
No. You must identify yourself to file a claim. However, retaliation is illegal and creates additional liability for your employer.

What if my employer goes out of business?
You can still file a claim. Corporate officers may be personally liable for wage violations. You might also file claims against the business’s insurance or successor companies.

How long does it take to recover unpaid wages?
NYDOL claims typically take 6 months to 2 years. Lawsuits can settle in 6-12 months or take 1-3 years if they go to trial.

Can I file if I was paid in cash or “under the table”?
Yes. Cash payments don’t exempt your employer from wage laws. In fact, off-books payments often indicate other violations.

What if I was undocumented?
You have the same wage rights as any worker, regardless of immigration status. Immigration status doesn’t affect your ability to file wage claims.

Do I have to pay taxes on my recovery?
Back wages are taxable income. Interest is taxable. Liquidated damages may be taxable (consult a tax professional). Attorney’s fees paid directly to your lawyer aren’t taxable to you.

Can I file if I signed a contract agreeing to lower pay?
Yes. Contracts can’t waive your right to minimum wage and overtime. The contract is unenforceable to that extent.

What if other employees have the same issue?
Consider a collective action (FLSA) or class action (state law) where multiple employees file together. This can increase leverage and reduce costs.

Related Topics

For more information about recovering unpaid wages in New York, see:

Legal Disclaimer

This article provides general information about recovering unpaid wages in New York. It is not legal advice for your situation. Every case is different, and laws change over time. For advice about your specific circumstances, consult an employment attorney or contact the New York Department of Labor. The information here is current as of November 2025 but may not reflect future changes.

Last updated: November 4, 2025