Patel v. Maybank Kim Eng Securities USA Inc.

What the court decided

A separation agreement promised five months of severance and the employer paid three. Section 198-c(3), which excludes executives earning more than $1,300 a week, limits only that section's criminal penalties and does not bar a civil claim under §§ 193 and 198. The 2021 amendment provides that "there is no exception to liability" for the unauthorized failure to pay wages, benefits or wage supplements, and "'all employees' under section 198 means just that – all."

Who won

The employee won on appeal. The dismissal of his §§ 193 and 198 claim was unanimously reversed and the claim was reinstated.

Why it matters for salespeople

A full opinion explaining what the 2021 amendment was for: the Legislature meant to end the rule that withholding pay entirely was not a "deduction," and to make wage theft unlawful "completely and without exception." Highly paid employees are covered. Earlier First Department cases applying the executive exclusion were limited to claims that arose before the amendment.

Key passage: 246 A.D.3d 104 at 105-109.

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This page summarizes the decision in plain language.