§ 342a. Investigation of complaints of unpaid wages
(a) An employee or the Department on its own motion may file a complaint that wages have
not been paid to an employee, not later than two years after the date the wages were
due. The Commissioner shall provide notice and a copy of the complaint to the employer
by service, or by certified mail sent to the employer’s last known address, together
with an order to file a response to the specific allegation in the complaint filed
by the employee or the Department with the Department within 10 calendar days after
receipt.
(b) The Commissioner shall investigate the complaint, and may examine the employer’s records,
enter and inspect the employer’s business premises, question employees, subpoena witnesses,
and compel the production of books, papers, correspondence, memoranda, and other records
necessary and material to investigate the complaint. If a person fails to comply with
any lawfully issued subpoena, or a witness refuses to testify to any matter on which
the witness may be lawfully interrogated, the Commissioner may seek an order from
the Civil Division of the Superior Court compelling testimony or compliance with the
subpoena.
(c) If after the investigation wages are found to be due, the Commissioner shall attempt
to settle the matter between the employer and employee. If the attempt fails, the
Commissioner shall issue a written determination and order for collection, which shall
specify the facts and the conclusions upon which the determination is based. The Department
shall collect from the employer the amounts due and remit them to the employee. Notice
of the determination and the order for collection to the employer shall be provided
to all interested parties by certified mail or service.
(d) If the Commissioner determines that the unpaid wages were willfully withheld by the
employer, the order for collection shall provide that the employer is liable to pay
an additional amount not to exceed twice the amount of unpaid wages. One-half of the
additional amount recovered above the employee’s unpaid wages shall be remitted to
the employee and one-half shall be retained by the Commissioner to offset administrative
and collection costs.
(e) Within 30 days after the date of the determination, the employer or employee may file
an appeal from the determination to a departmental administrative law judge. The appeal
shall, after notice to the employer and employee, be heard by the administrative law
judge within a reasonable time. The administrative law judge shall review the complaint
de novo and, after a hearing, the determination and, if applicable, order for collection
shall be sustained, modified, or reversed by the administrative law judge. Prompt
notice in writing of the decision of the administrative law judge and the reasons
for it shall be given to all interested parties.
(f) Notwithstanding any other provision of law, the employer or employee may appeal the
decision of the administrative law judge within 30 days by filing a written request
with the Employment Security Board. The appeal shall be heard by the Board after notice
to the employee and employer. The Board may affirm, modify, or reverse the decision
of the administrative law judge solely on the basis of evidence in the record or any
additional evidence it may direct to be taken. Prompt notice of the decision of the
Board shall be given to the employer and employee in the manner provided by section 1357 of this title. The Board’s decision shall be final unless an appeal to the Supreme Court is taken.
Testimony given at any hearing upon a complaint of unpaid wages shall be recorded,
but the record need not be transcribed unless ordered. The costs of transcription
shall be paid by the requesting party.
(g) The Commissioner may enforce a final order for collection under this section within
two years of the date of the final order in the Civil Division of the Superior Court.
[Subsection (h) effective until July 1, 2026; see also subsection (h) effective July
1, 2026 set out below.]
(h) Information obtained from any employer, employee, or witness in the course of investigating
a complaint of unpaid wages shall be confidential and shall not be disclosed or open
to public inspection in any manner that reveals the employee’s or employer’s identity
or be admissible in evidence in any action or proceeding other than one arising under
this subchapter. However, such information may be released to any public official
for the purposes provided in subdivision 1314(e)(1) of this title or to the Attorney General in relation to investigations conducted pursuant to section
346 of this subchapter as provided pursuant to the terms of the memorandum of understanding
between the Attorney General and the Commissioner of Labor executed pursuant to section 3 of this title.
[Subsection (h) effective July 1, 2026; see also subsection (h) effective until July
1, 2026 set out above.]
(h) Information obtained from any employer, employee, or witness in the course of investigating
a complaint of unpaid wages shall be confidential and shall not be disclosed or open
to public inspection in any manner that reveals the employee’s or employer’s identity
or be admissible in evidence in any action or proceeding other than one arising under
this subchapter. However, such information may be released to any public official
for the purposes provided in subdivision 1314(e)(1) of this title. (Added 1965, No. 182; amended 1977, No. 244 (Adj. Sess.), § 3, eff. May 1, 1978; 1999, No. 119 (Adj. Sess.), § 19, eff. May 18, 2000; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2013, No. 15, § 3; 2013, No. 173 (Adj. Sess.), § 1; 2019, No. 85 (Adj. Sess.), § 5, eff. Feb. 20, 2020; 2019, No. 85 (Adj. Sess.), § 13, eff. July 1, 2026; 2023, No. 85 (Adj. Sess.), § 80, eff. July 1, 2024; 2025, No. 40, § 5, eff. July 1, 2025.)