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New York DOL wage theft investigation recovers $6 million

On Behalf of | Aug 22, 2019 | Wage & Hour Claims

Not receiving proper compensation for services is a prevalent problem across the country. Many workers find themselves facing less pay than anticipated and deserved because their employers violated the law. In many cases, workers have to take action in efforts to have the wage theft addressed.

It was recently reported that an investigation involving the New York State Department of Labor and a Construction Fraud Task Force resulted in the recovery of approximately $6 million for around 500 ironworkers and welders. From Nov. 2013 through Dec. 2017, a construction company failed to properly compensate workers for wages and overtime pay. The company also provided fraudulent financial information to the state. The workers initially filed complaints with the company itself and were told that they did not have any options for receiving their owed compensation.

After a referral from the district attorney’s office, the investigation looked into the claims. The construction company will now utilize a five-year plan to repay the affected workers. The company also admitted to third-degree grand larceny. It was noted that this outcome is the largest single wage recovery in the state Department of Labor’s history.

Though this recovery is fortunate for these workers, there are numerous others in New York who face this same issue. If filing complaints with their employers do not garner the desired results, workers who believe that they have been affected by wage theft may want to consider their next steps. In many cases, legal action is required in order to have these violations addressed and to, hopefully, receive owed compensation.