Manhattan District Attorney Alvin Bragg announced a new Worker Protection Unit will pursue criminal charges against individual company executives and managers for allegations of wage theft.
In its press release, the Manhattan D.A.’s office said the new Unit will not only prosecute individuals and corporations that “steal wages,” but will also set up a hotline for employees to report wage theft or dangerous work conditions directly. Worker Protection Unit efforts will initially focus on hotels, fast food and restaurants, and health care facilities.
The new unit raises many questions for employers, including:
- Will any wage and hour violation, including technical or accidental violations, result in criminal prosecution? Or will there be a higher standard, such as an employer acting purposefully, willfully, or recklessly?
- What types of laws result in “wage theft” issues? Will it be any violation of the Fair Labor Standards Act or New York Labor Law and the City’s Fair Workweek laws that apply to fast food and retail employers?
- Will the D.A. expand coverage to independent contractors and gig workers?
It is unclear how the D.A. will choose to prosecute individuals. For example, will the D.A. go after high-level executives or more line-level supervisors? Will managers have to worry that complaints from employees about pay and overtime issues could result in criminal prosecution?
Impact on HR inquiries? Could this potential legal liability affect internal HR inquiries into wage and hour issues, as these inquiries could result in criminal liability for both the company and for individuals being questioned? Companies may also have to alter how they respond to inquiries from employment agencies if they face potential criminal exposure and these agencies share information with the Manhattan D.A.