On September 6, 2023, a new legislative amendment was signed into law by New York Governor Kathy Hochul, marking a significant development for the state’s employment law. As part of the New York Penal Law amendment, wage theft is now considered a criminal larceny.
To provide some context, under the New York Penal Law, larceny is defined as the act of stealing property with the intention of depriving another of that property or appropriating it to oneself or a third party. It involves the wrongful action of taking, obtaining, or withholding such property from its rightful owner. According to the law, the definition of the ‘property’, which was subject to larceny, traditionally included tangible assets only.
However, the amendment to the law expands this definition to add “compensation for labor services” to the type of ‘property’ that can be stolen. It means that if an employer withholds wages that are due to an employee, they’re at risk of being prosecuted for larceny under New York’s penal code.
This legal change signals a much harder stance against wage theft. Now, employers have an even greater legal obligation to ensure that they’re fully compensating their staff for their work.
For legal professionals and employers, it’s more important than ever to keep up to date with these changes. Understanding this amendment and what it means for your operations and staff should be taken into serious consideration. It’s essential to ensure companies’ remuneration policies and procedures are in complete compliance with the new law, to avoid any potential liabilities.