In a significant shift, New York State has now classified wage theft as criminal larceny. This change in the criminal legal framework was signed into law by Governor Kathy Hochul on September 6, 2023. This development will undoubtedly incite a wave of discourse in the corporate and legal world.
The change arrives as an amendment to the New York Penal Law. Historically, prosecutors struggled to bring meaningful consequences against employers who commit wage theft, also known as unlawfully withholding wages from their employees. However, with wage theft now considered criminal larceny, the dynamics have shifted substantially.
Under the restructured law, corporate firms and employers that intentionally refuse to pay their employees’ rightfully earned wages can face criminal charges. Indeed, the gravity of the charges will hinge on the value of the wages withheld, hence differentiating between petit larceny and grand larceny. Furthermore, the revised law will offer leverage to prosecutors and instigate a newfound sense of penalties, fines, and jail terms amongst employers.
It is imperative for employers, particularly those in New York State, to familiarize themselves with this recent legal amelioration and ensure that their payroll practices align with these new laws in order to avoid serious legal ramifications.
For a detailed breakdown of the law amendment and its implications, legal professionals can read the same on JD Supra. Authored by Hodgson Russ LLP, the discourse about this new law and how it reshapes the punitive landscape for wage theft should instigate much-needed conversation within and across corporations around remuneration practices.