{"id":152324,"date":"2026-03-04T12:32:08","date_gmt":"2026-03-04T12:32:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/152324\/"},"modified":"2026-03-04T12:32:08","modified_gmt":"2026-03-04T12:32:08","slug":"wage-and-hour-litigation-rises-sharply-in-new-york","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/152324\/","title":{"rendered":"Wage and hour litigation rises sharply in New York"},"content":{"rendered":"

Listen to this article<\/p>\n

Key takeaways:<\/p>\n

Wage and hour disputes in New York have risen dramatically, with more class and collective actions<\/a>.
\nMisclassification of employees and overtime pay errors are the most common litigation<\/a> issues.
\nNew York\u2019s six-year statute of limitations allows combining federal and state claims, increasing potential damages.
\nEmployers are advised to conduct audits<\/a>, improve timekeeping<\/a>, and train staff to reduce legal risks.<\/p>\n

Wage and hour litigation \u2013 disputes over how employees are paid, including overtime, worker classification and timekeeping \u2013 remains one of the most active areas of employment law, with little sign of slowing, especially in New York State.<\/p>\n

\u201cIt\u2019s gone up dramatically, there\u2019s no doubt about it,\u201d said Scott Rogoff, a partner at Barclay Damon who concentrates his practice on labor and employment matters, about the frequency of wage and hour disputes.<\/p>\n

While individual wage complaints have long been part of the employment landscape, Rogoff said class and collective actions are appearing with far greater frequency than in years past.<\/p>\n

\"\"Scott Rogoff<\/p>\n

\u201cIn the past, it was a one-off,\u201d he said. \u201cBut we\u2019re seeing a lot more class claims.\u201d<\/p>\n

One of the reasons for this, Rogoff said, is that unlike discrimination or harassment cases, wage and hour disputes often hinge on straightforward calculations.<\/p>\n

\u201cIt\u2019s direct money, and it\u2019s easily calculable,\u201d Rogoff said, explaining that, for example, if an employee alleges unpaid overtime, damages can typically be determined by payroll<\/a> records and hours worked without the more subjective components that complicate other employment litigation.<\/p>\n

He also points to a more informed workforce, noting that employees today have immediate access to information about wage laws and are increasingly aware of their rights. Add fee-shifting provisions, which allow prevailing employees to recover attorney\u2019s fees, and wage claims become particularly attractive to plaintiffs\u2019 counsel.<\/p>\n

Rogoff identifies classification as one of the most significant areas of risk for wage and hour litigation. To address this, he advises clients to conduct a simple but revealing visual exercise: list everyone providing services to the company and identify who is classified as an employee versus an independent contractor. Then, within the employee group, distinguish between exempt and non-exempt workers.<\/p>\n

\u201cIf you don\u2019t meet all of the requirements, we need to make some adjustments,\u201d Rogoff said. \u201cYou can\u2019t ignore this.\u201d<\/p>\n

Stephen J. Jones, a partner at Nixon Peabody and leader of the firm\u2019s wage and hour compliance and litigation team, sees similar activity, particularly in New York.<\/p>\n

Nationally, filings under the federal Fair Labor Standards Act have declined from their 2015 peak, Jones noted. But that broader trend does not fully reflect what is happening locally.<\/p>\n

\"\"\"\"Stephen J. Jones<\/p>\n

\u201cNew York certainly remains a hotbed,\u201d he said, noting that more Fair Labor Standards Act collective actions are filed in New York than in any other state, with roughly 1,200 filed annually.<\/p>\n

One reason is the state\u2019s six-year statute of limitations under New York Labor Law, which allows plaintiffs to pair federal claims with longer-reaching state claims.<\/p>\n

\u201cAs you can imagine, the potential damages can add up over a six-year period,\u201d Jones said.<\/p>\n

In his practice, Jones most frequently encounters three categories of wage and hour disputes: misclassification, regular rate miscalculations, and off-the-clock work<\/a>.<\/p>\n

Misclassification claims often center on whether employees properly qualify as exempt from overtime. Employers bear the burden of proving that both the employee\u2019s duties and salary basis meet exemption requirements \u2014 a standard that can be undermined by improper salary deductions or outdated assumptions about job responsibilities.<\/p>\n

Regular rate claims arise when employers fail to include all required forms of compensation, such as bonuses or shift differentials, in overtime calculations.<\/p>\n

\u201cThe regular rate is often higher than the hourly rate that employees get quoted,\u201d Jones explained.<\/p>\n

Off-the-clock allegations are also common, particularly where preliminary or post-shift tasks, meal periods, or automatic time deductions fail to capture all hours worked.<\/p>\n

To reduce exposure in these areas, Jones recommends forward-thinking compliance efforts, including privileged payroll audits, policy reviews and regular training for managers and human resources personnel.<\/p>\n

\u201cEmployers must remain proactive and vigilant in their compliance efforts,\u201d he said. \u201cThere\u2019s no shortage of wage and hour pitfalls.\u201d<\/p>\n

Ryan T. Biesenbach, an associate at Underberg & Kessler with a focus on labor and employment law, said wage and hour claims remain one of the most active areas of employment litigation in New York.<\/p>\n

\"\"\"\"Ryan Biesenbach<\/p>\n

\u201cWage and hour claims are highly attractive to plaintiffs\u2019 counsel because damages can be aggregated across groups of employees; both federal and New York law allow for liquidated damages (100%), attorneys\u2019 fees, and statutory penalties; and liability is often document-driven rather than credibility-driven,\u201d Biesenbach said.<\/p>\n

Employees are also generally more aware of their rights through social media and online resources, he noted. At the same time, \u201cthe ever-evolving legal requirements place a significant burden on employers, making it challenging to maintain compliance in an increasingly complex and shifting regulatory landscape.\u201d<\/p>\n

Mid-sized employers are particularly vulnerable, he said, because they often outgrow informal HR practices before implementing fully compliant policies and procedures.<\/p>\n

Common issues include misclassification errors, such as treating employees as exempt without satisfying both the salary threshold and duties tests, and overreliance on job titles such as \u201cmanager\u201d or \u201cadministrator\u201d when determining exemption status.<\/p>\n

Other recurring issues involve off-the-clock work, including employees answering emails, texts, or calls outside scheduled hours, or remote employees performing work before or after clocking in. Timekeeping inconsistencies, such as failing to record travel time or training time, and pay practices that conflict with the law, can also create exposure.<\/p>\n

\u201cMisclassification issues and proper payments of wages, such as overtime, remain the largest areas of risk,\u201d Biesenbach said, noting that liquidated damages can dramatically increase liability for what may be minor or unintentional errors. Add the potential for collective actions involving \u201csimilarly situated\u201d employees, and \u201cpotential liability can skyrocket.\u201d<\/p>\n

To reduce exposure, Biesenbach recommends proactive operational changes, including periodic wage and hour audits to review exempt classifications and confirm that salary thresholds and duties meet legal requirements. Employers should strengthen timekeeping systems, require employees to attest to time accuracy and train managers and supervisors on legal obligations and company practices.<\/p>\n

\u201cAnd, importantly, document everything with respect to employee time and attendance: as New York employers, there are strict record-keeping requirements with respect to employee pay and claims are won and lost in many cases on the availability of accurate, contemporaneous records,\u201d he said.<\/p>\n

Caurie Putnam is a Rochester-area freelance writer.<\/p>\n

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