Manhattan D.A. Announces New “Worker Protection Unit” to Prosecute Wage and Hour Violations

The Manhattan District Attorney (“D. A.”), Alvin Bragg, recently announced in a press release dated February 16, 2023 (the “Press Release”) the creation of a new “Worker Protection Unit” (the “Unit”) to investigate and prosecute wage and hour violations and other violations of labor laws.  Prior to the creation of this Unit, the D.A.’s Office has prosecuted wage and hour violations primarily in the construction and real estate industries through the Construction Fraud Task Force.  According to the Press Release, the Unit will allow this Office to “significantly expand its focus to include other industries with high rates of worker exploitation and wage theft, such as home healthcare agencies, fast food and restaurants, and more.”  According to the Press Release, another focus of the Unit is to investigate and prosecute workplace safety laws.  The Unit will also partner with other units within the D.A.’s Office to encourage vulnerable and under-served populations to report wage and hour violations. 

Aggrieved employees will have access to compensation through a pilot program, the Stolen Wage Fund.  This Fund will be initially financed through the D.A.’s Criminal Justice Investment Initiative with an investment of $100,000.  Thereafter, the D.A.’s Office may deposit up to $500,000 into the Fund.  Claims from the Fund will be vetted and calculated by the New York State Department of Labor.

Although wage and hour violations are not currently considered property theft under New York State law, Assembly Member Catalina Cruz and State Senator Neil Breslin have introduced a bill to amend the State’s larceny statutes to include wage theft.  The D.A.’s Office already has jurisdiction to criminally prosecute wage and hour violations under Section 198-A of the New York Labor Law. 

Employers should be aware of the D.A.’s focus on wage and hour violations while he was at the New York State Attorney General’s Office and be reminded that the potential for criminal prosecution is real.  As a result, employers are well served to ensure that their wage payment and related record keeping practices comply with applicable law.  Crowell & Moring attorneys will continue to monitor these developments.