Client Alerts & Insights
New Legislation Introduced to Protect and Expand Employee Rights and Benefits in New York
September 12, 2023
Authored By:
New York Criminalizes Wage Theft
On September 6, 2023, New York Governor Kathy Hochul signed legislation making failure to pay wages a criminal offense. The new law, (S2832-A/A154-A), expands New York’s definition of larceny to include “wage theft,” specifically providing that:
a person obtains property by wage theft when he or she hires a person to perform services that the person performs such services and the person does not pay wages, at the minimum wage rate and overtime, or promised wage, if greater than the minimum wage rate and overtime to said person for work performed.
It further amends the definition of “property” to include “compensation for labor or services.” The penalties for wage theft under the new law range from small fines to incarceration, depending on the severity of the offense. Multiple instances of wage theft may also be aggregated into a single larceny count.
The new law follows the Manhattan District Attorney’s February 2023, implementation of a ‘Worker Protection Unit’ to investigate wage theft allegations and prosecute alleged offenders. Prosecutors across New York State may now use the new law to pursue criminal penalties against employers that withhold wages in their jurisdictions. It remains to be seen, however, whether employers who inadvertently fail to comply with New York’s complex wage and hour laws will be able to rely on the larceny statute’s “intent to deprive” requirement as a defense.
In light of New York’s criminalization of wage theft, employers should ensure that they remain in full compliance with New York’s robust wage and hour laws. This includes properly paying workers for all hours worked and keeping comprehensive and accurate records of the same. Failure to do so is now riskier than ever.
Increased Workers’ Compensation Benefits in New York
Governor Hochul also signed legislation which increased the benefits for workers compensation under New York law. Specifically, minimum benefits as of January 1, 2024 will be no less than $250 per week, unless an employee’s wage is less than $250 per week, in which case employees will receive the full amount of their weekly wage. This amount will increase to $325 per week on January 1, 2025.
After July 1, 2026, those receiving workers’ compensation benefits in New York will be entitled to no less than one-fifth of the New York State average weekly wage, unless an employee’s wage is less than or equal to one-fifth of the New York State average weekly wage, in which case the employee will receive the full amount of their weekly wage.
Quite naturally, an increase in these benefit amounts could result in an increase in claims. Employers should be mindful of the same going forward.
For more information, please contact a member of Benesch’s Labor & Employment Practice Group.
Adam Primm at aprimm@beneschlaw.com or 216.363.4451.
Christopher W. Pendleton at cpendleton@beneschlaw.com or 216.363.6219.
Latest News
Back To Wright Line: NLRB Resets Standards for Workplace Misconduct
Employers have regained greater flexibility to address offensive or abusive employee conduct that occurs during union activity or other activity protected by the National Labor Relations Act. On September 23, 2026, the National Labor Relations Board (the “Board”) issued a significant decision in Lion Elastomers LLC, 375 NLRB No. 41, restoring the prior standard for evaluating discipline when employee misconduct occurs during protected concerted activity from General Motors LLC, 369 NLRB No. 127.
Can an Algorithm Commit a Tort? The Circuit Split Over Section 230
A growing circuit split is reshaping the scope of Section 230 immunity. While the Fourth and Ninth Circuits continue to view algorithmic recommendations as protected publisher conduct, the Third Circuit has taken a narrower approach, holding that certain algorithm-driven content recommendations may constitute a platform’s own conduct and therefore fall outside Section 230’s protections.
Key Considerations for Businesses facing Defamation Issues: Strategies for Protecting Your Reputation and Brand
Defamation risk for businesses has never been higher. Even five years ago, unfavorable press could be expected to fade from …
SDNY Bankruptcy Court Offers Further Direction on Default Interest and Fee Recovery
The SDNY Bankruptcy Court’s written decision in 1300 Desert Willow builds on the framework established in Mako, providing additional guidance on when a debtor can overcome the presumption that an oversecured creditor is entitled to post-petition default interest at the contractual rate.