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Friday, September 20, 2024

Attorney General recovers $750K in stolen wages for cell phone company workers

State AG
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Attorney General Letitia James | Official website

New York Attorney General Letitia James announced the recovery of $750,000 in stolen wages for employees of Best Wireless, a retail cell phone company. The Office of the Attorney General (OAG) found that Best Wireless engaged in multiple labor violations, including illegal wage deductions and failure to pay overtime. These practices affected approximately 450 employees across New York City, Long Island, and Rockland County.

"Every worker should receive the fair treatment and full compensation they have earned and deserve," said Attorney General James. "Best Wireless refused to provide this to hundreds of employees, threatening their livelihoods and flagrantly violating the laws designed to keep New York workers safe."

In 2022, a district manager at Best Wireless in TriBeCa filed a complaint with Verizon's corporate office about unfair pay deductions and lack of breaks or overtime pay. After filing the complaint, he was fired and received multiple cease-and-desist letters from Best Wireless. His case was referred to OAG by The Legal Aid Society.

The investigation confirmed retaliation against the district manager and uncovered additional cases of retaliation against other employees who had complained about labor practices. One employee reported harassment after complaining about pay violations; another was fired for notifying management about New York City labor law requirements.

The OAG investigation revealed numerous violations impacting around 450 employees, including charging for lost merchandise, failing to provide overtime pay, misclassifying employees as overtime-exempt, not providing regular paystubs, setting up a fraudulent commission structure, refusing paid breaks while deducting pay as if breaks were taken, and retaliating against those who complained.

Best Wireless will return $750,000 to current and former employees affected by these practices. Verizon has terminated its relationship with Best Wireless, and owner Nishant Garg sold the business but must report any future senior management roles to OAG within 30 days.

Attorney General James emphasized her commitment to combating wage theft. Recent recoveries include nearly $230,000 for building employees in April 2024 and $328 million for Uber and Lyft drivers in November 2023.

This case was managed by Assistant Attorneys General Kristen Ferguson and Jessica Agarwal with support from Legal Assistants Berenice Peck and Yadira Filpo under Civil Enforcement Section Chief Fiona Kaye and Bureau Chief Karen Cacace of the Labor Bureau. Data analysis was provided by Casey Marescot under Director Victoria Khan and Deputy Director Gautam Sisodia from the Research and Analytics Department. The Labor Bureau is part of the Division for Social Justice led by Chief Deputy Attorney General Meghan Faux under First Deputy Attorney General Jennifer Levy.

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