Governor Hochul Announces Major Crackdown to Combat Wage Theft

Governor Kathy Hochul today announced major actions to combat wage theft and protect the paychecks of hardworking New Yorkers. The Governor announced that the Wage Theft Task Force, a coordinated effort between the New York State Department of Labor, the New York State Attorney General, and District Attorneys, has recently secured felony convictions and agreements from more than a dozen businesses and 265 individuals to pay nearly $3 million in wage restitution and contributions owed to New York State since the beginning of the COVID-19 pandemic. The Governor also announced new efforts to double down on the success of the Task Force, launching a new hotline and developing a state-of-the-art online wage theft reporting system to create more opportunities for workers to report wage theft and receive what they are owed while protecting their privacy and safety.

Starting today, New Yorkers can report wage theft directly to the New York State Department of Labor by calling the new hotline at 833-910-4378, which has interpretation services available. The online reporting system will give New Yorkers the ability to report wage theft online in a variety of languages while improving the Department's ability to track complaints and identify trends.

"As we work to help New Yorkers recover from the economic hardship of the pandemic, we must ensure we are protecting workers and guarantee they receive the pay they are owed," Governor Hochul said. "The Wage Theft Task Force has already secured major victories for workers, and I thank the Attorney General and District Attorneys for their partnership with the Department of Labor to crack down on bad actors and deliver justice to workers. I am proud that we are doubling down on our efforts in order to help more workers and make it clear that in New York, wage theft will never be tolerated."

"Wage theft is a serious issue and I join the Governor, Attorney General and the Department of Labor in saying that New York will not tolerate the theft of hardworking New Yorker's livelihoods," said Lieutenant Governor Antonio Delgado. "The measures announced today will help us combat this issue and bring restitution to these victims."

To further empower New Yorkers to report theft, NYSDOL has also begun developing a new, state-of-the-art Worker Protection Management System, where New Yorkers can report claims online in multiple languages and receive updates in real time about the status of their claim. The $10 million project, set to be complete in 2023, will also provide the Department with real time data, enhancing its ability to analyze and identify violation trends. This builds on the Governor's ongoing efforts to improve transparency and increase accountability in State government.

Wage Theft Task Force

The Wage Theft Task Force initially leveraged criminal laws to achieve justice for construction workers in cases involving wage theft, fraud, and safety hazards. The Task Force has recently expanded its scope into other industries and counties in New York State. The Wage Theft Task Force includes NYSDOL, the New York State Attorney General's Office, the New York State Insurance Fund (NYSIF), the Offices of District Attorneys across the State, and the New York City Department of Investigation. The Task Force works closely with labor unions and community-based organizations as part of efforts to support workers and recover owed wages.

New York State Department of Labor Commissioner Roberta Reardon said, "Our investigators, District Attorneys, and law enforcement agencies across the State are pursuing bad actors who look to cheat hardworking New Yorkers out of what they're owed. My message to unscrupulous employers is clear: We will not tolerate the mistreatment of workers. If you violate our labor laws, we will find you and hold you accountable. We will never stop fighting to protect all New York workers."

Civil Agreements

In April 2022, Lintech Electric, Inc. agreed to pay $900,000 in restitution to more than 200 workers after failing to pay prevailing wage and submitting false payroll documents while working as a subcontractor on several projects with the New York City Housing Authority. (New York State Attorney General's Office)

New York State Attorney General Letitia James said, "Each and every day, hardworking New Yorkers move our state forward - they are what make us great. For too long and too often, greedy employers have preyed upon these same workers, cheating them out of the wages they have rightfully earned. In the last two years, my office has returned over $15 million to more than 15,000 victims of wage theft statewide, and we will continue to do everything in our power to ensure that bad actors who steal from New Yorkers are held accountable. I am grateful to Governor Hochul, Commissioner Reardon, and all members of the Wage Theft Task Force for their partnership and relentless commitment to fight for the working people of New York."

Felony Convictions

On June 1, 2022, Piyamas Dimasi of Thai Bistro and Karma Bistro was sentenced to 5 years of probation, and must pay $8,000 in restitution for unpaid wages, as well as repay NYSDOL and the New York State Department of Taxation and Finance after forcing an immigrant to work at their restaurant. (Schenectady)

On June 1, 2022, Paul Hurley, owner of Hurley's Steakhouse and Pub in New Rochelle, pled guilty to Failure to Pay Wages, a misdemeanor for failing to pay eight employees a total of $23,114 for work performed. As part of his plea agreement, Hurley paid full restitution to the victims and will be sentenced on September 14, 2022, to three years of probation. (Westchester)

On April 29, 2022, APJ Restoration Inc. pleaded guilty to fraudulent practices against NYSIF, a violation of Workers' Compensation Law, and Alan James pleaded guilty to 2nd Degree Falsifying Business Records for underreporting the gross sales of the business on documents submitted to NYSIF. The defendants will pay more than $32,575 in restitution to NYSIF. (Suffolk)

On April 7, 2022, Goldstar Installation Services and Paul Gilistro pleaded guilty to 2nd Degree Scheme to Defraud for failing to pay the legal prevailing wage rate to employees. As part of the plea agreement, the defendants paid $40,000 in restitution with an additional $40,000 to be paid over a one-year period. (Suffolk)

On March 28, 2022, Tri-State Construction of NY Corp pled guilty to "Willful Failure to Pay the Prevailing Wage and Supplement" and agreed to pay over $121,530 to employees for failing to pay employees their supplemental benefits and overtime wages on a capital improvement project for the Huntington Union Free School District. (Suffolk)

On February 17, 2022, Designcore Ltd. took a corporate plea with a conditional discharge which includes paying $39,400 in restitution to six employees after failing to pay wages and overtime for workers. (Brooklyn)

On October 14, 2021, Linda Cunegin and Tri-County Home Nursing Services pleaded guilty to failure to pay wages under the New York Labor Law and was ordered to repay $61,000 in wages after failing to pay wages to nine workers. (Nassau)

On September 22, 2020, Jagdep Deol pleaded guilty to failure to pay a prevailing wage on behalf of his company, Laser Electrical Contracting. This is a felony charge for withholding more than $1.5 million in prevailing wages from 11 employees on projects for the New York City School Construction Authority and the New York City Department of Education. As part of a plea agreement, Deol is required to make full restitution to the victims and will reimburse New York City approximately $160,000 in investigation costs. Deol also pled guilty to a misdemeanor violation of the New York State Prevailing Wage Labor Law. (Queens)

On August 26, 2021, Joseph Fregosi of Fregosi Landscaping pleaded guilty to Willful Failure to Pay Prevailing Wage, 1st Degree Falsifying Business Records, and 3rd Degree Perjury for falsifying payroll reports for failing to pay two workers prevailing wage on a Putnam County construction project. Fregosi will pay $46,800 in restitution to the victims. (Putnam)

State Senator Jessica Ramos, Chair of the Senate Labor Committee, said, "A full day's work deserves a full day's pay. I've prioritized legislation that puts my neighbors' hard-earned money back in their pockets since I joined the Senate, fighting for SWEAT and passing legislation that targets wage theft in the private construction industry. I'm grateful that New Yorkers will have another tool at their disposal to recover stolen wages and see this as an important initiative in our state's collective effort to defend working people from exploitive bosses."

Assemblymember Latoya Joyner, Chair of the Assembly Labor Committee said, "Hardworking families need to know that New York has their back and that employers seeking to line their own pockets at the expense of their employees will be held accountable. The success of the Wage Theft Task Force and today's announcement of the new hotline send a clear message that New York will not tolerate wage theft and I am proud to support Governor Hochul's latest initiative to support working people."

Manhattan District Attorney Alvin Bragg said, "Persistent bad actors have systematically abused and cheated their employees. My office will continue to hold these employers accountable and protect workers who have been victimized. This is an issue of fairness, economic opportunity and racial justice. I'm grateful to Governor Hochul and NYSDOL for creating a way with language access for New Yorkers to report wage theft."

Brooklyn District Attorney Eric Gonzalez said, "Workers deserve every dollar that they're owed, and these cases send a strong message to unscrupulous employers that cheating workers doesn't pay. Wage theft cases are a top priority for my dedicated Labor Fraud Unit, and I'm grateful to the Governor, Inspector General, the Wage Theft Task Force, and our partners in labor for their collaboration, and for their leadership taking on this all-too-pervasive crime that victimizes hardworking New Yorkers."

Nassau County District Attorney Anne T. Donnelly said, "We have found through our investigations that when employers cheat their workers, they're often engaging in other criminal activities. It starts with stealing wages, then falsifying payroll records, tax returns, unemployment insurance claims and failing to have the proper amount of workers' compensation insurance. My office is committed to ensuring that employers who line their pockets with the hard-earned wages of their employees are held accountable. I thank Governor Hochul for giving us new tools to combat wage theft in our communities."

Putnam District Attorney Robert Tendy said, "Wage theft in New York, particularly on government projects, is a big problem and it takes hard earned money away from those who deserve it the most. We won't tolerate it. This investigation was the result of a tip, and we ask anyone with information about wage theft in our county to contact us. Everything is kept confidential, and we take this very seriously."

Queens District Attorney Melinda Katz said, "Unscrupulous employers and contractors who choose to do business in New York are on notice that we will not stand for theft, fraud or unsafe work conditions in our City and State. Not only is wage theft a pervasive problem, but it also disproportionately impacts the most vulnerable members of our community and negatively impacts our economy. That is why I created the Housing & Worker Protection Bureau upon taking office, to make sure that employees (and homeowners) are protected from illegal actions. I thank Governor Kathy Hochul, Attorney General Letitia James, and all the public officials for their hard work in safeguarding New York's workforce."

Suffolk District Attorney Ray Tierney said, "I am committed to the fight to protect our hardworking citizens as a member of the Wage Theft Prevention Task Force. I strongly believe that enhancing community vigilance and government responsiveness to this issue is critical, and I applaud this coordinated effort to bring those who steal from our workers to justice."

Westchester District Attorney Miriam Rocah said, "Not paying workers who are already earning low wages, and taking advantage of immigrant workers, is an egregious exploitation of hardworking people and it is a crime. I'm grateful to our partners and colleagues in the Wage Theft Task Force for the collaboration we've been able to do in seeking justice for workers in all industries, especially those most vulnerable to these crimes."

Schenedtady District Attorney Bob Carney said, "Schenectady has a proud history of advancing and protecting the rights of workers as the City that gave birth to General Electric, and I see these cases as being of that tradition. Labor trafficking is an assault on basic human dignity, it deprives the government of taxes owed and confers an undeserved competitive advantage on the perpetrator. We are pleased to support the Governor’s initiative."

New York State Insurance Fund Executive Director & CEO Gaurav Vasisht said, "Fighting fraud is a key component of ensuring that New York employers receive the lowest possible cost workers' compensation and disability insurance. I would like to thank the NYSDOL, the Office of the Attorney General and all the law enforcement authorities for their partnership in holding bad actors accountable and protecting the state's workers."

Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York said, “Far too often, irresponsible, and unscrupulous contractors on private construction projects abuse their workers by withholding wages, overtime, and benefits, and by mobilizing the Wage Theft Task Force, the State has stepped up to protect workers in New York’s construction industry from further exploitation. Honest work should result in honest pay and accountability on the job site is imperative. We applaud Governor Hochul for continuing to be a fierce advocate for hardworking New Yorkers, and their families, and look forward to working with the Task Force to ensure all construction workers are being compensated properly statewide.”

NYSDOL Wage Theft Protection

Over the past decade, NYSDOL had recovered and dispersed more than $360 million in stolen wages, identified over a million misclassified workers, and assessed over $400 million owed in unemployment insurance contributions through both criminal cases and civil enforcement.

All private businesses in New York State are required to pay the minimum wage and overtime and adhere to state and federal labor laws. NYSDOL helps collect underpayments for workers who have not received the minimum wage. New Yorkers who need assistance or want to file a complaint can email [email protected] or call: 1-888-4-NYSDOL (1-888-469-7365).

Prevailing wage is the pay rate set by law for work on public work projects. Per New York State Labor Law, contractors and subcontractors must pay the prevailing rate of wage and supplements to all workers under a public work contract based on the locality where the work is performed. To report prevailing work violations, email: [email protected].