3 NYC Wage Theft Busts in 2025

In 2025, New York City witnessed a surge in wage theft cases, proving the ongoing challenges workers face in securing fair compensation for their hard work.

Despite tough labor laws, crooked employers continue to exploit workers, particularly in sectors with vulnerable populations. 

At Morgan & Morgan, we believe New Yorkers should be paid what they deserve—fairly, on time, and without complications. That’s why we fight for workers who have been misclassified, denied overtime pay, or subject to any other form of wage theft an employer may attempt.

Below, we’ll delve into three significant wage theft cases in NYC this year, examining their implications and the broader context of labor rights enforcement.

If any of these cases or a similar situation applies to you, contact us today for a free case evaluation to learn more about your legal options.

1. Fire Department Trainees Allege Unpaid Overtime and Abusive Practices

In January 2025, two former FDNY trainees, William H. Payne and Brandon Keeney, filed a class-action lawsuit against New York City, alleging systemic wage theft during their time at the Fire Academy. 

The lawsuit claims that trainees were compelled to work up to 30 unpaid hours weekly, often arriving 90 minutes early and performing tasks beyond their scheduled shifts without compensation. These tasks included menial and humiliating duties, such as cleaning bathrooms and doing push-ups, under a strict no-phone policy to prevent documentation.

The plaintiffs argue that these practices violate labor laws mandating fair compensation for all hours worked. Their attorney emphasized that "no employer—not even the FDNY—is immune from laws that protect workers against wage theft." The city’s Law Department has stated it will review and respond to the case as required.

2. FTC Investigates Uber and Lyft for Alleged Collusion to Suppress Driver Pay

On January 21, 2025, the Federal Trade Commission (FTC) launched an investigation into Uber and Lyft over allegations of collusion to suppress driver pay in New York City. 

The probe centers on claims that the companies coordinated to reduce driver earnings through practices like "lockouts," where drivers are prevented from logging into the app during peak hours, effectively limiting their income opportunities.

The FTC is examining whether these practices, potentially facilitated by agreements with NYC officials, amount to anti-competitive behavior violating federal laws. Both companies deny any wrongdoing and assert compliance with NYC regulations. 

3. Legal Aid Society Sues CDPAP Administrator Over Wage Violations

In May 2025, the Legal Aid Society filed a federal class-action lawsuit against Public Partnerships LLC, the company contracted to manage New York’s Consumer Directed Personal Assistance Program (CDPAP). 

The suit alleges that tens of thousands of home care workers have faced wage violations due to widespread technical failures in the company's systems, particularly the Time 4 Care app used for timekeeping.

Workers report difficulties accessing the app, leading to delays and incorrect payments. These issues have imposed serious financial burdens on low-wage home care aides, many of whom rely on timely payments to meet basic needs. The lawsuit seeks class-action status, citing systemic failures that have resulted in significant wage theft.

How NY Can Crack Down on Wage Theft

Currently, there are legislative efforts to strengthen worker protections in New York. In 2023, the state amended its penal law to classify wage theft as larceny, allowing for harsher penalties against violating employers.

Additionally, the Wage Theft Prevention Act (WTPA) mandates that employers provide detailed wage notices to employees and protects workers from retaliation when filing complaints.

Despite these measures, enforcement remains a challenge. 

That’s where Morgan & Morgan comes in.

Morgan & Morgan Fights for NYC Workers

The wage theft cases in 2025 show the persistent challenges in ensuring fair labor practices in New York City. As the city navigates these complex issues, Morgan & Morgan’s NYC office upholds our commitment to fighting for workers' rights.

As the nation’s largest personal injury law firm with over 35 years of experience, we have the size, reputation, and expertise to take on even the largest companies who don’t pay workers what they’re legally owed.

We’ve recovered over $25 billion, and if you have a case, we may be able to help you fight for the compensation you deserve, too.

Hiring one of our lawyers is easy, and you can get started in minutes with a free case evaluation.