3 Key Takeaways
- New York, New Jersey, Florida, Texas, and California now treat wage theft as a criminal offense — with fines and potential jail time.
- Large-scale or repeat violations can be elevated to felonies in all three states.
- Criminal charges don't replace your right to sue — you can still pursue a civil claim to recover what you're owed.
Wage theft is real and it may be affecting you
Wage theft happens when an employer fails to pay workers the wages they have legally earned. It can take many forms, including unpaid overtime, off-the-clock work, withheld tips, illegal deductions, or simply not paying employees for all the hours they worked.
Workers in industries such as construction, hospitality, cleaning services, retail, and food service are especially vulnerable to wage theft. For many employees, losing even a few hours of pay can make it harder to cover rent, groceries, childcare, and other essential expenses.
Traditionally, wage theft has been treated as a civil matter, meaning workers must take action themselves by filing a lawsuit or submitting a complaint to a state or federal labor agency. But these remedies often place the burden on the very people who have already been denied their earnings. Pursuing a claim can take time, money, and energy, and many workers fear retaliation from their employers for speaking up.
Because civil penalties and government investigations have not always been enough to deter employers from stealing wages, some states—including New York, New Jersey, California, Florida, and Texas—have taken steps to criminalize certain forms of wage theft. These laws recognize that intentionally taking wages from workers is more than a workplace dispute; it can be a form of theft that deserves meaningful consequences.
New York
New York has two overlapping frameworks. Under its Labor Law, a first-offense wage theft violation is a misdemeanor (up to $20,000 in fines or one year in jail). A second offense within six years becomes a felony. Notably, individual managers and officers who knowingly allow the violations can be personally charged — not just the company.
As of July 2024, New York also updated its Penal Law to define wage theft as a form of larceny, opening the door to grand larceny charges for large-scale theft. Prosecutors can combine unpaid wages across an entire workforce — even across different counties — into a single charge. The U.S. Department of Labor has additional resources on federal wage protections.
New Jersey
In New Jersey, wage theft isn't just a labor violation — it can be a crime. Employers who intentionally refuse to pay workers what they have earned can face criminal charges, fines, and even jail time under the New Jersey Wage Theft Act. The more money that is stolen, the more severe the penalties become. If multiple employees are affected, the unpaid wages can be combined, increasing the potential criminal charges. New Jersey also punishes employers who misclassify workers as independent contractors to avoid paying wages and benefits they legally owe.
Florida
Florida addresses wage theft through a combination of constitutional and statutory protections. The state minimum wage is established in Article X, Section 24 of the Florida Constitution, which also gives workers the right to bring civil actions for unpaid wages, back pay, and attorney’s fees. The Florida Minimum Wage Act and broader Chapter 448 labor regulations outline employer obligations, retaliation prohibitions, and remedies for nonpayment. Employers must also comply with state posting and notice requirements, found in the Florida Department of Commerce. Federal protections enforced by the U.S. Department of Labor’s Wage & Hour Division apply as well, covering overtime, minimum wage, and recordkeeping.
Texas
The main protection for workers is the Texas Payday Law, which requires employers to pay on time, follow written pay agreements, and avoid unlawful paycheck deductions. Workers can file a wage claim with the Texas Workforce Commission (TWC) within 180 days of when the wages were due. Texas also follows federal rules under the Fair Labor Standards Act, which sets minimum wage and overtime requirements.
California
California's law, in effect since January 1, 2022, is one of the most explicit in the country. Intentional wage theft can be prosecuted as grand theft — a "wobbler" that can be charged as either a misdemeanor or felony — when the amount stolen exceeds $950 from one employee, or $2,350 combined from two or more employees, within any 12-month period.
The law also covers independent contractors, not just traditional employees. And workers can still pursue civil claims for back pay at the same time as criminal charges are filed. Stolen wages may be recovered as criminal restitution.
Why This Matters
These laws change the calculus for employers who might have previously viewed underpaying workers as a manageable financial risk. Criminal penalties — including possible prison time and public conviction records — raise the stakes significantly. For workers with civil claims, it also adds real leverage. Learn more about your federal rights at the National Labor Relations Board (NLRB).
If you are unsure you should seek counsel
If you have questions about if any of the above applies to you and/or your situation, never just sit back and do nothing. It is always better to reach out to our team at VKV to see if there is something you can do to make things right.
