If your business was just served with a lawsuit claiming unpaid overtime or minimum wage, you are reading this because the complaint arrived without warning, from an employee or former employee, filed by a law firm you have never heard of, and it asks for more money than the wages in question. That is the normal shape of these cases, and it is defensible.
My name is Michael Samuel. I have practiced in New York since 1993 and have handled wage and hour cases from both sides for most of that time, which is how I know what the plaintiff’s lawyer expects, what the case is worth on the records, and where it ends. This page explains what you have been served with, what your deadline is, and what defending it looks like.
The most important fact first. Most of these cases are filed in federal court, the Southern or Eastern District of New York, and in federal court you generally have 21 days from the day you were served to answer or move. The date is printed on your summons. If the case is in New York State Supreme Court, the deadline is 20 or 30 days depending on how you were served. Either way, the clock started when the papers reached you.
What the Lawsuit Claims
Wage and hour complaints in New York almost always plead two laws together: the federal Fair Labor Standards Act and the New York Labor Law. The typical claims are unpaid overtime for hours over 40 in a week, unpaid minimum wage, off-the-clock work, misclassifying workers as exempt or as independent contractors, and, under New York law, missing wage notices and wage statements, which carry their own statutory penalties.
Three things make these cases larger than the wages themselves. New York’s statute of limitations is six years, against two or three under federal law, so the claim reaches back further than most employers expect. Both laws allow liquidated damages, which can double the unpaid amount. And both laws award the employee’s attorneys’ fees to a prevailing plaintiff, which is why the plaintiff’s firm took the case on contingency and why the demand keeps growing while the case sits.
Owners and managers are often named personally. Under both laws an individual who controls pay decisions can be liable alongside the company. That is a reason to take the case seriously; it is not a reason to panic.
Is It a Real Claim, or a Volume Filing?
Both can be true. A handful of plaintiff firms in New York file wage cases at very high volume, using the same template complaint against restaurants, contractors, warehouses, salons, and delivery companies. Some of those cases are well founded; many overstate hours, overstate the period, or plead penalties that do not apply. Which kind you have depends on your records: time records, pay records, wage notices, and the written policies you can show. A defense lawyer who handles these cases will tell you within a week which parts of the complaint the records support and which they do not.
What to Do in the First 48 Hours
- Do not ignore it. Federal courts enter default judgments against businesses that miss the deadline, for the full amount demanded plus fees. A default is the most expensive outcome available.
- Preserve every record. Time clocks, schedules, payroll, wage notices, pay stubs, text messages about shifts. Deleting or “cleaning up” records after service is the one thing that can turn a defensible case into an indefensible one.
- Do not talk to the employee about the case, and do not change their situation. If the person still works for you, treat them exactly as before. Retaliation is a separate claim with its own damages, and it is far easier to prove than the wage claim.
- Do not call the plaintiff’s lawyer yourself. Anything you say about hours or pay practices will be used.
- Tender the claim to your insurer. Employment practices liability policies sometimes respond to wage claims or to the defense costs. Ask.
What Defending the Case Looks Like
The first job is to price the case honestly, from your records, before anyone talks about numbers. Real exposure is usually a fraction of the demand once hours are reconstructed, exempt status is examined, and inapplicable penalties are set aside. From there most cases resolve through negotiation or mediation. Federal wage settlements have to be approved by the court, which means the terms are reviewed for fairness and the case genuinely ends. Some cases warrant a motion; some warrant discovery to force the plaintiff to prove hours they cannot document. Each of those decisions is made on the records, not on the size of the complaint.
The second job is to fix what caused the claim, so the next employee does not become the next lawsuit: wage notices in the right form, overtime calculated correctly, contractors who are actually contractors.
Fees Agreed Before You Commit
You will know the cost of the defense before you decide anything. I quote the fee up front, explain what it covers, and tell you what the realistic outcomes are in the same conversation. Delay is the expensive decision in these cases, not the defense.
Frequently Asked Questions
How long do I have to respond to a wage and hour lawsuit?
In federal court, generally 21 days from service. In New York State court, 20 days if you were served in person in New York, 30 days otherwise. Count from the day you received the papers and confirm the date with counsel immediately.
Can I be sued personally for my company’s wage claim?
Yes. Under both the FLSA and the New York Labor Law, an owner or manager who controls pay and scheduling can be held individually liable. Most complaints name the company and one or two individuals.
The employee still works for me. What do I do?
Nothing different. Same shifts, same pay, same treatment. Any change after service can be pleaded as retaliation, which is its own claim with its own damages.
The complaint says six years. Is that right?
Under New York law, yes. The federal claim reaches back two years, or three for a willful violation. That is why New York wage cases plead both laws.
What will this cost to defend?
The fee is quoted before you commit. What the case itself costs depends on your records, and that is the first thing I evaluate.
If You Have Been Served, Do This Today
Bring the summons and complaint to a lawyer who defends these cases, before the deadline, with whatever records you have. Call me directly at 212-563-9884, or use the form on this page. If you are the employee in a wage dispute rather than the employer, see the wage and overtime page.
Michael Samuel has practiced law in New York since 1993 and handles wage and hour matters for employers and employees. He is admitted to the New York bar (Registration No. 2563005) and before the United States District Courts for the Southern and Eastern Districts of New York.
Attorney Advertising. This page is general information and not legal advice. Reading it does not create an attorney client relationship. Prior results do not guarantee a similar outcome.
