High Court of New York Finds Executives Covered by Labor Law

On June 10, 2008, the New York State Court of Appeals resolved an issue over which lower New York courts were divided. According to New York’s highest court, individuals who serve in executive or “white collar” capacities are entitled to protection under some of the wage provisions of New York’s Labor Law. The case, Pachter v. Bernard Hodes Group, Inc., is of particular interest to us, because our firm represented the executive.
Prior to the Court’s decision in Pachter many lower courts were divided on whether the Labor Law covered so-called white collar workers. Many courts had held incorrectly that only manual workers and those making less than $600 a week were protected by the Labor Law. The Court in Pachter recognized that, in fact, white collar employees were protected against unlawful deductions to compensation, and were also protected against pay discrimination on the basis of sex.