THE NEW YORK STATE DEPARTMENT OF LABOR RECOVERS OVER $191,000 IN UNPAID WAGES FOR 93 EMPLOYEES

The New York State Department of Labor (NYSDOL) today announced that over $191,000 in unpaid wages was recovered for 93 employees working at the Buffalo-based company, Magellan Technology/Demand Vape. NYSDOL’s Division of Labor Standards found the employees had been shorted pay due under New York State’s spread of hours law for service workers. Typically, an underpayment occurs when minimum wage workers work more than 10 hours and there is a break longer than 4 hours between shifts. Employers are required to pay one additional hour per day at minimum wage when an employee’s spread of hours exceeds 10 hours or the employee workers a split shift. Any amount over the hourly minimum wage can be used to offset this requirement.

“We are doing everything we can to not only protect workers, but also educate employers and businesses,” said New York State Department of Labor Commissioner Roberta Reardon. “The involvement of NYSDOL brought this issue to the employer’s attention and secured the recovery of the unpaid wages. We will continue to work with employers to ensure all employees are receiving the pay they work hard for and deserve.”

This investigation began after a complaint was made by a competitor, leading to an audit being requested by the NYSDOL Labor Standards division. After an audit, the company was found to be shorting workers on wages from 1/1/2019 through 4/4/2022. 

Magellan Technology/Demand Vape was unaware of the split shift and spread of hours provision in the state’s Miscellaneous Wage Order. Once aware, Magellan Technology/Demand Vape conducted a self-audit, at the request of the Division of Labor Standards, and paid all eligible employees and formers employees on 8/8/22.

This recovery is part of ongoing wage theft recovery efforts at NYSDOL. NYSDOL is committed to helping workers collect wages owed to them, including unpaid wages, withheld wages, illegal deductions, tip appropriation, and more.

The Division of Labor Standards also investigates and collects unpaid benefits, such as wage supplements, which includes vacation/holiday pay, paid sick leave, expense reimbursement, and more. For more information, including how to file a claim, visit https://on.ny.gov/unpaidwages.