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A rally in front of the office of the New York State Department of Labor in
lower Manhattan in October 2022. Proposed legislation would bolster the power of
state agencies to crack down on wage theft. Credit: Marcus Baram/Documented
Labor


PROPOSED WAGE THEFT LEGISLATION WOULD STRIP VIOLATORS OF THEIR ABILITY TO DO
BUSINESS IN NEW YORK


“WE DID NOT HAVE THE DATA TO UNDERSTAND THE SCALE OF THE ISSUE IN NEW YORK STATE
UNTIL THE PROPUBLICA AND DOCUMENTED SERIES CAME OUT LAST YEAR,” STATE SEN.
JESSICA RAMOS SAID.

by Marcus Baram, Documented Feb. 6, 6 a.m. EST
 * Twitter Twitter
 * Facebook Facebook
 * Link Copied!
   Link Copy

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Republish
Co-published with Documented


SERIES: WAITING ON PAYCHECKS: NEW YORK’S RAMPANT WAGE THEFT GOES UNPUNISHED

Investigating the prevalence of wage theft in New York and how the state is
failing to protect workers.

This article was produced for ProPublica’s Local Reporting Network in
partnership with Documented. Sign up for Dispatches to get stories like this one
as soon as they are published.

New York lawmakers proposed three new bills last week that would make it
difficult for wage theft violators to conduct business in the state.

The legislation would bolster the power of state agencies to crack down on wage
theft by stripping violators of their liquor licenses or business licenses, as
well as issuing stop-work orders against them.

ProPublica


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The legislation was prompted by reports of rampant wage theft against New York
workers, including two investigations published by Documented and ProPublica.
The stories revealed that more than 127,000 New Yorkers have been victims of
wage theft during a recent five-year period, but that the New York State
Department of Labor was unable to recover $79 million in back wages owed to the
workers.

The stories were based on an analysis of two databases of wage theft violations
obtained from the U.S. and New York Labor departments. The databases provided
previously unreported details on how much money had been stolen from workers and
also shed light on which businesses had committed wage theft.



“We knew from our conversations with labor and from our constituent service
caseload that wage theft is a chronic problem,” said Sen. Jessica Ramos, a
Democrat who sponsored the legislation. “We did not have the data to understand
the scale of the issue in New York state until the ProPublica and Documented
series came out last year. Having this reporting as a tool set us up to put this
package together and focused our attention on” the capacity of the Department of
Labor.

The legislation — dubbed the “wage theft deterrence package” by lawmakers —
includes three bills, which are co-sponsored in the State Assembly by
Assemblymembers Kenny Burgos, Harvey Epstein and Linda Rosenthal.

The first, S8451, would empower the New York State Liquor Authority to suspend
liquor licenses for bars and restaurants that the Department of Labor has
determined owe more than $1,000 in back wages to their workers. According to
Documented and ProPublica’s analysis, more than $52 million has been stolen from
people working in restaurants in New York, more than in any other industry. The
amount of back wages accounted for more than 25% of all reported wage theft in
the state. Similar measures have been successful in other parts of the country,
including Santa Clara County in California, which has recovered $110,000 for
workers since 2019.

The second bill, S8452, would enable the Department of Labor to place a
stop-work order on any business that has a wage theft claim of at least $1,000.
This approach has proven successful in other states, such as New Jersey, which
temporarily shut down 27 Boston Market restaurants and eventually recovered more
than $630,000 in back wages for 314 workers. Boston Market did not respond to a
request for comment.

The third bill, S8453, allows the New York State Department of Taxation and
Finance to suspend a business’s certificate of authority — which allows it to
collect sales tax and conduct business — in cases where wage theft exceeds
$1,000.

The three bills include a provision that allows employers to avoid the
punishments if they resolve their wage theft claims within 15 days.

ProPublica

Read More


127,000 New York Workers Have Been Victims of Wage Theft

Ramos’ office told Documented and ProPublica that it’s too early to gauge the
level of support among other lawmakers for the bills, which were introduced
Wednesday. But Ramos and Rosenthal, a Democrat who represents the Upper West
Side and the Clinton neighborhood in Manhattan, wield considerable clout in the
Legislature, as they chair powerful committees — the Labor and Housing
committees, respectively. And the bills have the support from the state
Department of Labor, according to Ramos’ office.



“Each year, more than $1 billion is stolen from the pockets of hardworking New
Yorkers by unscrupulous employers, often targeting the workers with the fewest
resources to fight back,” Rosenthal said. “If businesses refuse to do the right
thing and pay their workers what they are owed, New York State should hold them
to account.”

The bills were praised by worker advocates and urban studies academics,
including James Parrott, director of economic and fiscal policies at The New
School’s Center for New York City Affairs. “These bills are needed to put more
teeth into New York’s enforcement efforts,” Parrott said. “We owe it to
hard-working low-wage workers and law-abiding employers.”

Filed under —

 * Labor



More in Labor
Caret
America’s Dairyland


WHEN IMMIGRANT DAIRY FARM WORKERS GET HURT, MOST CAN’T RELY ON WORKERS’
COMPENSATION

Wisconsin’s exemption for small farms is one of many federal and state
carve-outs that have historically left farm workers — and dairy workers in
particular — with fewer rights and protections than others.

by Melissa Sanchez and Maryam Jameel, Dec. 22, 2023, 5 a.m. EST

America’s Dairyland


“ONCE YOU’RE NO GOOD TO THEM, THEY GET RID OF YOU”

Immigrant workers are essential to Wisconsin’s dairy industry. But when they get
injured, they’re often cast aside.

by Maryam Jameel and Melissa Sanchez, Dec. 20, 2023, 5 a.m. EST

America’s Dairyland


OSHA INVESTIGATES SMALL DAIRY FARMS SO RARELY THAT MANY WORKER ADVOCATES DON’T
BOTHER TO REPORT DEATHS AND INJURIES

Worker advocates say the federal agency’s patchwork of enforcement across the
country is fundamentally unfair. Many don’t contact OSHA over safety incidents
because they’ve heard so frequently that small farms can’t be investigated.

by Melissa Sanchez and Maryam Jameel, Nov. 13, 2023, 6 a.m. EST

Waiting on Paychecks


127,000 NEW YORK WORKERS HAVE BEEN VICTIMS OF WAGE THEFT

An analysis of federal and state databases sheds new light on the prevalence and
scale of wage theft in New York restaurants and other industries, placing the
total wages stolen in one five-year period at more than $203 million.

by Max Siegelbaum, Documented, with data analysis by Agnel Philip, ProPublica,
and Lam Thuy Vo, special to ProPublica, Aug. 22, 2023, 6 a.m. EDT

Local Reporting Network

Waiting on Paychecks


NEW YORK WORKERS ARE WAITING ON $79 MILLION IN BACK WAGES

The New York State Department of Labor still needs to recover 63% of stolen
wages during a five-year period analyzed by ProPublica and Documented. The
problem? An understaffed agency with poor tools for recovering wages and
enforcing judgments.

by Marcus Baram, Documented, with data analysis by Agnel Philip, ProPublica, and
Lam Thuy Vo, special to ProPublica, Aug. 21, 2023, 6 a.m. EDT

Local Reporting Network

America’s Dairyland


WHY SOME WISCONSIN LAWMAKERS AND LOCAL OFFICIALS HAVE CHANGED THEIR MINDS ABOUT
LETTING UNDOCUMENTED IMMIGRANTS DRIVE

“If we suddenly kicked out all of the people here, the undocumented, our dairy
farms would collapse,” one lawmaker said. “We have to come up with a solution.”

by Melissa Sanchez, Aug. 11, 2023, 5 a.m. EDT

Most Read


HOW A BIG PHARMA COMPANY STALLED A POTENTIALLY LIFESAVING VACCINE IN PURSUIT OF
BIGGER PROFITS

A vaccine against tuberculosis has never been closer to reality. But its
development slowed after its corporate owner focused on more profitable
vaccines.

by Anna Maria Barry-Jester, Oct. 4, 2023, 5 a.m. EDT


HOW COLUMBIA IGNORED WOMEN, UNDERMINED PROSECUTORS AND PROTECTED A PREDATOR FOR
MORE THAN 20 YEARS

For decades, patients warned Columbia about the behavior of obstetrician Robert
Hadden. One even called 911 and had him arrested. Columbia let him keep working.

by Bianca Fortis, ProPublica, and Laura Beil, photography by Hannah Whitaker for
New York Magazine, Sept. 12, 2023, 5 a.m. EDT

Post-Roe America


IDAHO BANNED ABORTION. THEN IT TURNED DOWN SUPPORTS FOR PREGNANCIES AND BIRTHS.

Since the overturn of Roe v. Wade, the state’s GOP-led Legislature has disbanded
a maternal mortality committee, failed to expand postpartum Medicaid coverage
and turned down federal grants for child care.

by Audrey Dutton, Oct. 3, 2023, 6 a.m. EDT

Unwatched


LOUISIANA SUPREME COURT RULING OVERTURNS REFORM LAW INTENDED TO FIX
“THREE-STRIKES” SENTENCES

The ruling was a victory for state attorney general, Jeff Landry, but defense
attorneys say it could also help their clients’ requests for reduced sentences.

by Richard A. Webster, Verite News, Oct. 4, 2023, 6 a.m. EDT

Local Reporting Network

With Every Breath


PHILIPS KEPT COMPLAINTS ABOUT DANGEROUS BREATHING MACHINES SECRET WHILE COMPANY
PROFITS SOARED

Tainted CPAP machines and ventilators went to children, the elderly and at least
700,000 veterans despite internal warnings. Company insiders said the devices
posed an “unacceptable” risk.

by Debbie Cenziper, ProPublica; Michael D. Sallah, Michael Korsh and Evan
Robinson-Johnson, Pittsburgh Post-Gazette; and Monica Sager, Northwestern
University, Sept. 27, 2023, 6 a.m. EDT

Stay informed with the Daily Digest.

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