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Wage Claims under Labor Law: Executives Need Not Apply
Wage claims under Section 191 of the Labor Law are a handy gadget in a plaintiff's toolbox. Such statutory claims provide not merely for recovery of lost wages but also liquidated damages equal to 25% of the total wages due as well as attorneys' fees and costs.
Section 191, however, has an Achilles heel, and that is its application to supervisors and executives or, better put, its inapplicability to them. Although no express exclusion appears in the statute, courts have divided over the definition of “employee” and whether it includes executives. Some courts have interpreted the definition broadly to include them. See, e.g., Daley v. The Related Cos., 179 A.D.2d 55 (1st Dep't 1992); Cohen v. Stephen Wise Free Synagogue, 1996 WL 159096 (S.D.N.Y. 1996). In contrast, the New York Court of Appeals applied the Labor Law only to non-supervisory personnel in the leading case Gottlieb v. Laub & Co., 82 N.Y.2d 457 (1993). A number of other courts have followed suit. See, e.g., Taylor v. Blaylock & Partners, 240 A.D.2d 289, 292 (1st Dep't 1997).
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Bit Parts
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