All workers in New York City are entitled to be paid fully and accurately for the work they perform. Federal, state, and local wage and hour laws set requirements for minimum wage, overtime pay, lawful deductions, and proper employee classification. When employers fail to meet these obligations, whether by denying overtime, underpaying wages, misclassifying workers, or requiring off-the-clock work, employees have the right to pursue a wage claim.
Lipsky Lowe LLP represents workers in wage and claim cases, working to protect their rights, recover unpaid wages, and hold employers accountable under the law. If you believe your employer denied you fair pay, connect with us today.
What Is the Fair Labor Standards Act (FLSA)?
The Fair Labor Standards Act is a federal law that establishes nationwide rules for minimum wage, overtime pay, and recordkeeping. The federal minimum wage remains $7.25 per hour, but New York employers must comply with higher state and local wage requirements.
Under the FLSA, most non-exempt employees must be paid overtime at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. Employers may not avoid these obligations through job titles, salary labels, or informal policies.
Minimum Wage in New York City
Minimum wage rates in New York depend on location and industry.
Effective January 1, 2026:
- New York City, Long Island, and Westchester County: $17.00 per hour
- Remainder of New York State: $16.00 per hour
These rates apply to most non-tipped employees. Separate rules govern tipped workers, fast-food employees, and certain regulated industries.
Tipped employees must still receive at least the applicable minimum wage when tips and cash wages are combined. Failure to ensure this may result in a minimum wage violation.
Employee Misclassification and the Denial of Overtime
New York employers must follow both federal and state overtime rules. Most employees who are not properly classified as exempt are entitled to overtime pay.
To lawfully classify an employee as exempt from overtime, an employer must meet both of the following requirements:
- The employee must be paid at or above the required salary threshold
- The employee’s primary duties must meet the legal definition of an exempt role
Job titles alone do not determine exempt status.
Overtime Salary Thresholds Under New York Law
As of January 1, 2026, the salary thresholds for executive and administrative exemptions are:
NYC, Long Island, and Westchester County:
$1,275 per week ($66,300 annually)
Remainder of New York State:
$1,199.10 per week ($62,353.20 annually)
Employees who do not meet both the salary requirement and the duties test are generally entitled to overtime pay, even if they are paid a salary.
Misclassification may entitle employees to unpaid overtime, liquidated damages, interest, and attorneys’ fees.
Unlawful Wage Deductions
New York law strictly limits payroll deductions. Deductions must be expressly authorized in writing by the employee and must be voluntary.
Permissible deductions include:
- Federal and state taxes
- Health insurance premiums
- Retirement contributions
- Union dues
- Charitable contributions
- Certain education or childcare expenses
Employers generally may not deduct for:
- Business losses or fines
- Cash shortages
- Broken or lost equipment
- Uniforms or tools
- Travel or lodging
- Used paid time beyond an allotment
Unauthorized deductions may support a wage claim.
Unpaid Commissions and Bonuses
Under New York law, earned commissions and bonuses are considered wages when they are nondiscretionary and promised under a compensation plan. Employers must pay earned commissions even after employment ends, unless a valid agreement states otherwise.
Improperly withheld commissions or bonuses may be recovered through a wage-and-hour claim.
Common Wage Violations in the Restaurant and Hospitality Industry
Hospitality employers may take a tip credit only if strict requirements are met. Employers may not:
- Keep any portion of employee tips
- Apply a tip credit without proper notice
- Require tipped employees to perform excessive non-tipped work
- Misrepresent service charges as gratuities
Failure to comply with tip credit rules often results in violations of minimum wage and overtime laws.
Retaliation for Wage Complaints Is Illegal
Federal, state, and city laws prohibit retaliation against employees who complain about wage violations. Retaliation may include termination, demotion, schedule changes, or other adverse actions.
Employees who experience retaliation may pursue additional damages beyond unpaid wages.
Contact Our NYC Wage and Hour Attorney
If your employer has failed to pay you correctly, do not assume the issue will resolve itself. Wage and hour claims are time-sensitive, and delays can limit what you are able to recover. Lipsky Lowe helps New York City workers evaluate potential violations, understand their options, and pursue unpaid wages under state and federal law. Contact us today for a confidential evaluation of your wage-and-hour claim.
Frequently Asked Questions About NYC Wage and Hour Claims
What qualifies as a wage and hour violation in NYC?
Wage and hour violations may include unpaid minimum wages, unpaid overtime, off-the-clock work, misclassification as exempt or as an independent contractor, unlawful deductions, tip theft, or failure to pay earned commissions or bonuses.
How far back can I recover unpaid wages in New York?
Under New York Labor Law, employees may generally recover unpaid wages for up to six years. Federal claims under the Fair Labor Standards Act usually cover two years, or three years for willful violations.
Does being paid a salary mean I am not entitled to overtime?
No. Being paid a salary does not automatically make an employee exempt from overtime. To be exempt in NYC, an employee must meet both the required salary threshold and the duties test under New York law.
What can I recover in a wage-and-hour claim?
Successful claims may result in unpaid wages, liquidated damages equal to the unpaid wages, interest, and attorneys’ fees, depending on the facts and the law applied.