BUFFALO N.Y. (WKBW) — The state's Department of Labor announced Wednesday that nearly $200,000 in unpaid wages were recovered for 93 employees working at a Buffalo-based company.
The department found that the company, Magellan Technology/Demand Vape, had shorted pay for its employees, according to the state's spread of hours law.
This shorted pay or underpayment happens when minimum wage workers work more than 10 hours and there is a break longer than 4 hours between shifts.
Employers are supposed to pay employees an additional hour per day at minimum wage when an employee's spread of hours goes over 10 hours or if they work a split shift.
An investigation into the underpayment began when a Magellan Technology competitor complained about the shortened pay.
An audit requested by the NYSDOL's Labor Standards division found that workers were shortened pay from Jan. 1, 2019, through April. 4, 2022.
Magellan was unaware of the split shift/spread of hours provision, and after conducting a self-audit, the company paid all of its eligible current and former employees on Aug. 8, 2022.
