Report Unpaid Wages Defense Case | Successfully Protecting Employers Against Wage Claim Allegations

When New York employees report unpaid wages, the Department of Labor initiates an inquiry into payroll practices, timekeeping, classification, and payment history.

Typical areas examined include:

· Whether the employer paid all earned wages on the scheduled payday

· Whether time records match claimed hours

· Whether overtime was paid at time and a half for hours over forty

· Whether meal periods, rest periods, or off the clock tasks occurred

· Whether deductions were lawful and authorized

In this case, each employee who chose to report unpaid wages claimed missing regular pay and additional hours. However, internal payroll logs contradicted these allegations.

The first group of employees attempted to report unpaid wages by alleging missing final pay. 

Defense counsel analyzed payroll registers, bank transfer confirmations, and electronic paystub logs, demonstrating that:

▶ All final wages were issued on the next regular payday as required under NYLL §191.

▶ Each employee acknowledged receipt through either direct deposit confirmations or electronic stub access.

▶ No deductions were made outside those expressly permitted by NYLL §193.

Because New York law presumes employer compliance when detailed contemporaneous records exist, the evidence directly contradicted the claims and undermined the credibility of those who attempted to report unpaid wages.

The second allegation involved night shift differentials and overtime. Employees who attempted to report unpaid wages claimed they were required to work hours not reflected in the timekeeping system.

However, the defense showed:
 

· Electronic time clock logs automatically recorded entry and exit

· CCTV time data matched digital logs

· Overtime was paid whenever employees actually exceeded forty hours per week

· New York wage orders did not require a night differential for the industry involved

By integrating digital timestamp metadata, the employer demonstrated that the accusations were factually unsupported.

Key factors included:

· The employer maintained compliant payroll documentation

· Timekeeping data was electronic, tamper resistant, and cross verifiable

· No evidence showed off the clock work

· Final pay matched statutory deadlines

· Employees’ statements were inconsistent with objective records

Because New York Labor Law places the burden of demonstrating a violation on the claimant, the inability to counter the employer’s evidence meant the effort to report unpaid wages was unsuccessful.

Employers should adopt the following practices:

· Maintain accurate electronic timekeeping systems

· Provide written wage notices under NY Wage Theft Prevention Act requirements

· Issue itemized paystubs for every pay period

· Store payroll records for at least six years

· Conduct periodic internal wage audits

· Provide clear policies on overtime authorization and breaks

· Respond promptly and professionally if workers attempt to report unpaid wages

These measures allow employers to demonstrate compliance proactively and defend themselves effectively during investigations.