Wage theft is a violation that strips workers of their rightful pay. For New York’s construction workers, it manifests in entrenched ways. The men and women who erect the skylines and build the neighborhoods of some of the world’s most iconic cities are often victims of exploitation. Despite recent reforms and protections, wage theft still lurks in the scaffolds, threatening workers who often don’t know where to turn for help.
Each year, over $1 billion in wages is stolen from workers across New York State, according to watchdog Documented’s Wage Theft Monitor. The construction industry is among the most egregious offenders. Since 2012, more than $59 million in stolen wages have been owed to workers in this sector.
What drives this issue, and what measures are being taken to address it? These pressing questions shape the core of this blog as we look into the pervasive prevalence of wage and hour theft in New York's construction industry.
Under Pressure: How Rising Costs Lead to Worker Exploitation
At the center of the wage theft epidemic lies the relentless increase in construction costs across New York. Costs for materials, labor, and logistics have shot up in recent years. The price of aggregates like cement and gravel has risen significantly, while overall construction costs in the state have ballooned, putting pressure on contractors to cut corners.
Exacerbating this tension is the makeup of New York’s construction workforce. Many contractors rely on immigrant labor to fill their ranks, knowingly exploiting workers who are less likely to report violations. They’re often told that speaking out could result in deportation or job loss. Without financial means or familiarity with labor protections, this segment of the construction workforce is particularly ripe for exploitation.
For non-unionized workers, which comprises 80 percent of New York’s construction workforce, the risks compound further. Without the backing of a union, these laborers lack a central authority advocating for their wages, safety, and rights. This precarious position is aggravated by limited awareness; many simply don’t know that the underpayment or overtime violations they’re suffering are illegal.
Steps New York State Has Taken to Tackle Wage & Hour Violations
New York State lawmakers have acknowledged the breadth of the problem, taking steps in recent years to address wage theft in the construction sector. In 2022, Governor Kathy Hochul announced a major crackdown that included reforms aimed at protecting vulnerable workers.
The Construction Industry Wage Theft Act, enacted in 2022, was critical in expanding protections. Under this law, contractors can now be held liable for wage theft committed by their subcontractors. This change was significant in an industry that moves along lengthy chains of subcontracted work.
That same year, New York launched the Wage Theft Task Force, a collaboration between state labor agencies, local prosecutors, and community organizations. The task force investigates and penalizes employers who steal wages. A multilingual wage-theft hotline was also implemented, allowing workers to report violations anonymously and securely.
Additional programs followed in 2023, including Manhattan’s Worker Protection Unit and the Stolen Wage Fund. The Worker Protection Unit focuses on litigating wage theft cases while providing resources for laborers to pursue restitution. Similarly, the Stolen Wage Fund set aside capital specifically to reimburse workers whose stolen earnings cannot be recovered through existing means.
Despite Reforms, Wage Theft Still Plagues New York’s Construction Workers
These reforms mark a significant step forward. Yet despite renewed protections, wage theft remains endemic in New York's construction industry.
Investigations reveal just how difficult it is to enforce these policies. The state’s Department of Labor suffers from chronic underfunding and staff shortages, leaving thousands of cases unresolved. Critics within the agency have described an overwhelmed wage theft division, where investigators struggle with caseloads that can stretch on for years.
Meanwhile, systemic enablers of wage theft remain unchecked. Certain contractors known to violate wage and hour laws have allegedly continued receiving public contracts, showing that even aggressive state action has its limits.
Immigrants remain disproportionately affected by the persistence of corruption and fraud in this sector. One construction company in Queens deliberately misrepresented payroll records to undercut immigrant laborers out of $67,000 collectively owed to them. Another contractor remains open for business even after being convicted of stealing over $31,000 in wages from immigrant laborers.
Fight Against Wage Theft by Staying Informed
Under New York State law, all employees — including undocumented workers — are entitled to certain protections, such as:
- Receiving the minimum wage.
- Overtime pay for extra hours worked.
- Regular meal and rest breaks.
Employers must also honor prevailing wage agreements for public works and are prohibited from deducting unauthorized expenses from paychecks. These rights are further reinforced by the Fair Labor Standards Act (FLSA) and New York's wage statutes, ensuring workers receive the pay and benefits they’ve earned.
Watch for suspicious employer practices, including:
- Being paid less than minimum wage.
- Unauthorized deductions for equipment, tools, or uniforms.
- Altered or forged timekeeping records that underreport hours worked.
Education is key to fighting wage theft in the construction industry. Workers, especially immigrants and contract laborers, must stay informed about their rights to protect themselves.
Frequent Wage & Hour Theft Violations in Construction
Wage theft remains a persistent issue in the construction industry, with employers adopting common tactics to shortchange workers.
- Misclassification Schemes: Employers often label workers as independent contractors rather than employees. This allows them to avoid paying overtime or providing benefits.
- Underreporting Work Hours: Some employers log fewer hours on official records than were actually worked or instruct workers to “clock out” but continue working unpaid.
- Manipulating Hourly Wages: Employers may falsify hourly rates, especially for workers in non-union jobs, further cutting into their rightful earnings.
- Unlawful Deductions: Workers regularly face unexplained paycheck deductions for supposed “equipment fees” or other costs unrelated to their responsibilities.
By recognizing these patterns, workers can better understand when their rights are being compromised and take steps to protect themselves. Education, awareness, and vigilance remain crucial tools in ending these unlawful practices.
Don’t Settle for Less. Let Us Help You Fight for the Wages You Worked Hard For.
When faced with construction companies willing to exploit the law, construction workers must have a trusted ally who understands how to push back. Since 2015, Brown Kwon & Lam has been committed to protecting the rights of workers across New York State. When we represent you, our goal is not only to secure financial restitution but also to validate the dignity of hardworking men and women in an industry where exploitation has become all too routine.
If you’ve experienced wage theft within the construction sector, you don’t have to tolerate it. Contact us online or call (212) 295-5828 for support through a free initial consultation, either virtually or in person.