New Study Finds New York Among Top 10 States for Wage Theft Violations

A new nationwide study has ranked New York among the worst states in the country for wage theft violations, placing ninth overall for the number of cases per capita.

The study, conducted by Shirazi Law Firm using five years of U.S. Department of Labor data, found that New York recorded 59,063 wage theft violations between 2020 and 2025. That equates to 297.29 violations per 100,000 residents — well above the national average.

Over that same period, employers in New York were ordered to pay $22.5 million in back wages to more than 16,000 workers. The total number of affected employees reached nearly 17,500, according to the report.

“Wage theft continues to be a pervasive issue across the country, and our research shows that many workers are still not being paid what they’re legally owed,” said Emanuel Shirazi, founder of Shirazi Law Firm, in a statement. “New York’s ranking highlights the need for stronger enforcement and education around workers’ rights.”

The report sheds light on significant disparities in wage law compliance between states. Indiana topped the list with more than 6,500 violations per 100,000 residents—over 20 times higher than New York’s rate. Tennessee, Ohio, and North Carolina followed closely behind.

Notably, states with the most violations didn’t necessarily recover the most money for workers. While Indiana had the highest number of violations, it ranked only 26th in back wages recovered per 100,000 residents. Conversely, New Hampshire ranked sixth in violations but led the country in back wages recovered per capita.

New York ranked 20th in back wages paid per 100,000 people, despite having the ninth-highest number of violations.

Wage theft, which includes unpaid overtime, withholding of tips, and failure to pay minimum wage, disproportionately affects low-wage workers and immigrants, labor advocates say.

“Workers need to know that wage theft is not just unethical—it’s illegal,” said a spokesperson for a New York workers’ rights nonprofit, responding to the report. “This data underscores the importance of legal assistance, union support, and policy reform to protect vulnerable employees.”

At the other end of the spectrum, North Dakota, Montana, and Wyoming had the lowest number of violations per capita, with fewer than 40 cases per 100,000 residents. California, the most populous state in the nation, ranked 37th overall in violations per capita but reported over $31 million in back wages—more than any other state.

The study urges workers to be vigilant and seek legal help if they suspect wage violations. “There are remedies available,” Shirazi said, “but awareness is key.”

Shirazi Law Firm says their data was compiled from the Department of Labor’s Wage and Hour Compliance records from 2020 to 2025 and normalized based on state population to provide an accurate comparison.

If you suspect wage theft or want to learn more about your rights as an employee, visit https://www.shirazilawfirm.com/

This article uses findings from Shirazi Law Firm. For the full dataset, visit https://enforcedata.dol.gov.