Remedies Available under the New York Minimum Wage Act
Economic Damages
For starters, economic damages are available under the New York Minimum Wage Act. Pursuant to N.Y. Lab. Law § 663(1), (2), the economic damages recoverable by an employee entail the total sum of all unpaid wages. Additionally, pursuant to N.Y. Lab. Law §§ 218(1), 219, the employee may also recover any wages, wage supplements, or benefits due and annual interest starting from the underpayment date to the payment date. Further, N.Y. Lab. Law § 663(1) also provides for prejudgment interest when an employee brings a civil action before a court.
Compensatory Damages
However, unlike under the NYSHRL, there is no applicable statute through which an employee may recover compensatory damages under the New York Minimum Wage Act.
Punitive Damages
Similarly, the New York Minimum Wage Act contains no applicable statute that would allow a court to impose punitive damages against an employer.
Attorney’s Fees and Costs
Nonetheless, despite the unavailability of compensatory and punitive damages, the New York Minimum Wage Act, as codified under N.Y. Lab. Law § 663(4), stipulates that attorney’s fees and costs incurred when a court enforces its judgment in a civil action may be collected by the commissioner or an employee. Additionally, pursuant to N.Y. Lab. Law § 663(1), all reasonable attorney’s fees and costs are recoverable by an employee who prevails in an action under this law.
Injunctive Relief
Just like when it comes to compensatory and punitive damages, New York has no applicable law through which a prevailing party may be granted injunctive relief.
“Other” Remedies
Lastly, it is important to note that a court may also impose an additional amount in the form of “liquidated” damages if the employer is unable to demonstrate a good-faith basis for believing it was lawful under the New York Wage Act to underpay wages.
For instance, in an administrative action, as codified under N.Y. Lab. Law §§ 663(1), (2), 218(1), a court may impose an amount of up to 100% of the total underpayments. Notably, the same statute provides that in a civil action, a court may require the employer to pay an amount equal to 100% of the total underpayments. Employers and employees alike should also be aware that pursuant to N.Y. Lab. Law § 218(1), a court may impose an additional civil penalty amounting to not more than twice the amount of wage supplements, benefits, or wages.
Additionally, N.Y. Lab. Law §§ 218(1), 219 stipulates that liquidated damages amounting to the sum total (100%) of all unpaid wages constitute “other” remedy recoverable by an employee. Moreover, pursuant to N.Y. Lab. Law § 662, a court may find that an employer committed a criminal offense based on the violations in question.
Further, if it fails to pay the total amount due 90 days after the appeal duration has expired or within 90 days after the judgment (whichever comes later), a court can, as codified under N.Y. Lab. Law §§ 663(4), 218(1), enforce an extra 15% of the total judgment.
In Part III of the series and a blog post titled “Remedies Available under Disability Benefits & Paid Family Leave Benefits Laws,” we will discuss the various remedies available under these laws and as codified under N.Y. Workers’ Comp. Law §§ 200 et seq.
As usual, stay tuned for more legal guidance, training, and education. In the meantime, if you have any questions or comments, please let us know on the Contact Us page!
Always Rising Above the Bar,
Isaac T.,
Legal Writer, Author, & Publisher.,