This case study illustrates how employment attorneys new york successfully represented a senior operations manager against a Manhattan based manufacturing company that systematically withheld wages, failed to pay earned wage supplements, and refused to reimburse company related advances.The matter highlights how New York courts evaluate wage payment violations under New York Labor Law Article 6, apply contract and unjust enrichment principles to employee advances, and award statutory interest when employers attempt to obscure nonpayment through payroll formalities.Through coordinated civil litigation and evidence driven advocacy, the client achieved full recovery of unpaid wages, earned wage supplements, reimbursable advances, statutory interest, and litigation costs.
1. Employment Attorneys New York | Client Background and Employment Breakdown
The client was employed by a mid sized manufacturing company headquartered in Manhattan and held a senior administrative and operations management role overseeing internal finance coordination, human resources administration, vendor payments, and regulatory compliance.Although the client carried a managerial title, compensation terms were fixed by ownership, and the client exercised no independent authority over payroll decisions or corporate governance.Beginning in late 2021, the company experienced prolonged financial instability and gradually ceased making regular wage payments while continuing to assign full operational responsibilities to the client.
Scope of Responsibilities and Payment Irregularities
Despite continued full time work, the employer repeatedly delayed salary payments and eventually stopped paying wages altogether over a period exceeding eighteen months.
Throughout this period, company representatives assured the client that all back wages would be resolved once short term liquidity issues improved.
At the same time, the company continued issuing payroll records and tax filings that falsely suggested wages were being paid as scheduled, creating a misleading administrative record inconsistent with actual payment practices.
2. Employment Attorneys New York | Unpaid Wages and Earned Wage Supplements
Upon termination of employment, the company failed to pay accrued wages and did not remit earned wage supplements owed under company policy and New York law.These unpaid amounts included earned salary, contractually vested incentive compensation, and accrued paid time off that was payable upon separation pursuant to established company practice.Such conduct constituted violations of New York Labor Law Article 6, which governs the timing, payment, and protection of earned wages and wage supplements.
Failure to Pay Earned Compensation after Termination
Under New York Labor Law §191, employers are required to pay all earned wages no later than the next regular payday following termination of employment.
In addition, New York Labor Law §198 c prohibits employers from withholding earned wage supplements that are due under an employment agreement or established policy.
In this matter, the employer neither paid final wages nor provided a lawful basis for withholding earned compensation, supporting a finding that the nonpayment was willful rather than a temporary administrative delay.
3. Employment Attorneys New York | Reimbursement of Company Advances and Loan Obligations
In addition to unpaid wages, the client advanced personal funds at the employer’s express request to cover urgent company expenses, including vendor payments, licensing fees, and regulatory costs necessary to maintain ongoing operations.These advances were not discretionary expenditures but were made solely for the benefit of the employer and were documented through internal correspondence and written acknowledgments executed by company officers.
Employer Obligation to Repay Employee Advances
Under New York contract law and unjust enrichment principles, an employer may not retain funds advanced by an employee for company purposes without repayment.
The company executed a written repayment confirmation acknowledging the advances and stating that all amounts would be reimbursed within thirty days of the client’s separation date.
Despite this acknowledgment, the employer failed to make any repayment, further evidencing a breach of contractual obligations and reinforcing liability for repayment with interest.
4. Employment Attorneys New York | Litigation Strategy and Financial Recovery Outcome
Employment attorneys new york commenced a civil action in New York Supreme Court asserting claims for unpaid wages under New York Labor Law Article 6, recovery of earned wage supplements under §198 c, breach of contract, unjust enrichment, and repayment of documented advances.The litigation strategy relied on payroll records, bank statements, written acknowledgments, and statutory presumptions favoring employees in wage payment disputes.The employer’s reliance on internal payroll reporting was rejected in light of clear evidence that wages and reimbursements were never actually paid.
Statutory Interest, Court Findings, and Judgment
Pursuant to New York Civil Practice Law and Rules §§5001 and 5004, the court awarded prejudgment interest at nine percent per annum on unpaid wage and advance amounts, calculated from the dates payment was due.
The court further held that interest would continue to accrue until full satisfaction of the judgment.
As a result, the client recovered all unpaid wages, earned wage supplements, reimbursed advances, statutory interest, and recoverable litigation costs, achieving complete financial remediation and enforcement of statutory wage protections.
