Provided by: Judge Ruth B. Kraft



Many employers, particularly those with small workforces, have operated under the assumption that the union will not come knocking at their doors.  However, this is a false sense of security as the landscape of worker representation is in flux.   Alternative worker aid organizations have sprung up to fill the voids which occur in small businesses and with respect to undocumented workers.  I have recently written a long piece on the New York Domestic Workers’ Rights Act of 2010.  Many household workers are not legally in the United States and, therefore, cannot redress claims against employers in the court system.  However, workers centers, including a notable one for domestic workers in New York, provide an alternative form of worker representation.  Generally, these labor or legal services organizations receive funding from the federal government and charitable foundations.  They tend to focus on particular industries, including hospitality and hotel workers.  One such project, the Workers Defense Project has won over $1,000,000 in back pay on behalf of workers reporting wage and hour violations.  

These workers’ centers use the court of public opinion quite effectively and lobby local government to create special statutes, particularly with respect to minimum wage requirements.  Another tactic which they have implemented, when the employer owns real estate, is to file liens for unpaid wages against the property.  
A workers’ center does not have to fulfill the legal requirements mandated for labor unions under federal law. They are not required to disclose their finances, revenue sources and expenses.  

As the so-called “Nanny law” is rolled out nationwide by executive order effective January 1, 2015, we can expect to see the workers’ center model implemented on a much wider scale and for “copycat” organizations acting on behalf of workers in particular industries.  These may well be union funded.  Regardless, this is another impetus for employers to insure that they are in compliance with applicable statutory requirements, particularly in terms of work conditions, employee classification and wage/hour matters.

Do you have potential wage/hour or classification exposure? Schedule a consultation with Judge Ruth Kraft, Chair of the Employment Law Group, to review your practices by calling (516) 747-6700 ext. 326 or emailing to RKraft@Kirschenbaumesq.com.