By the founder of SmallClaims
New York small claims court handles money disputes up to $10,000 in NYC and most city courts — and it's one of the most consumer-friendly venues in the country for the three fights people bring most often: a landlord pocketing your security deposit, an employer shorting your paycheck, and a contractor who took your money and disappeared.
This guide covers the specific New York statutes, dollar limits, deadlines, and penalties that apply to each of those three case types in 2026. It also includes a decision tool to help you figure out where to file and what to bring to your hearing.
What court do I file in, and how much can I recover?
You can sue for up to $10,000 in New York City and up to $5,000 in most other courts, under Uniform City Court Act § 1801 and Uniform Justice Court Act § 1801. Town and village courts carry a lower $3,000 cap. That split matters. If you live in a suburb and your landlord kept a $4,000 deposit, you'd need to file in a city court — not your local village court — or waive the excess down to $3,000.
Filing fees are $15 for claims up to $1,000 and $20 for claims between $1,001 and $10,000. In NYC Civil Court, total cost runs about $35 to $45 once mailing and service are included. After you file, you receive a stamped copy with the hearing date — usually four to six weeks away — and the court mails two notices to the defendant by certified and regular mail.
One practical note: NYC Civil Court runs night sessions in several parts to accommodate working plaintiffs, a procedural quirk shared by few other states. Check your borough's court calendar before you assume you'll need a day off work.
Security deposit claims: What does New York law actually require?
The most significant reform came from the Housing Stability and Tenant Protection Act (HSTPA) of 2019, which limited security deposits to one month's rent statewide and established a strict 14-day return requirement for non-rent-regulated apartments. Effective November 15, 2025, changes to Section 7-107 of the General Obligations Law extended certain of these protections to rent-stabilized tenants as well.
The 14-day clock is unforgiving. Within fourteen days after the tenant has vacated the premises, the landlord must provide an itemized statement indicating the basis for any amount retained and return any remaining portion of the deposit. If a landlord fails to provide the statement and deposit within fourteen days, the landlord forfeits any right to retain any portion of the deposit. That forfeiture applies even if legitimate damage existed.
The penalties for willful violations go further than most tenants realize. If a landlord is found to have willfully violated the law, they are liable for punitive damages up to twice the amount of the security deposit on top of the actual damages. Owners who withhold any part of the security deposit must also provide the tenant with an itemized list of damages and the cost of repairs. Bring that itemization — or its absence — to court as your first exhibit.
Before you file, send a demand letter by certified mail citing General Obligations Law § 7-108 and stating a specific deadline for response. Even if legitimate damage existed, the landlord forfeited all rights to make deductions by missing the deadline. That letter creates the paper trail you'll need at the hearing and often produces a settlement before you ever see the inside of a courtroom.
Unpaid wages: When should I use small claims instead of the NYSDOL?
You have two paths for unpaid wages in New York: file a complaint with the New York State Department of Labor, or sue directly in court. The quickest and easiest way to recover unpaid wages is typically to file a wage claim online with the New York Department of Labor. For wage violations, you must complete a Claim for Unpaid Wage (LS 223). The Department of Labor will investigate your claim, hold a hearing, and help you recover any wages that are owed. The DOL route costs you nothing but time. The court route gives you more control and lets you claim liquidated damages directly.
If you go to court, in any action in which the employee prevails, the court shall allow the employee to recover the full amount of any underpayment, all reasonable attorney's fees, and — unless the employer proves a good faith basis to believe that its underpayment was in compliance with the law — an additional amount as liquidated damages equal to 100% of the total wages found to be due. That liquidated damages doubler is the reason small wages claims are often worth more than they look at first glance.
Under New York law, you have six years to file a claim for unpaid wages — one of the longest time limits in the country. This applies to minimum wage violations, unpaid overtime, tip theft, and other wage claims. The current minimum wage floor matters if you're calculating what you're owed: on January 1, 2026, the state minimum wage increased to $17.00 per hour in New York City, Long Island, and Westchester County, and to $16.00 per hour for the rest of the state.
One 2025 change worth knowing about if you're a manual worker: on May 9, 2025, Governor Hochul signed a bill amending New York Labor Law Sections 191 and 198, limiting liquidated damages recoverable for late wage payments to manual workers. For first-time offenders, an employee can now only recover lost interest on delayed wage payments, calculated using a daily interest rate for each day the payment is late. If your employer is a repeat offender, the full 100% liquidated damages can still apply.
Contractor disputes: What makes a New York case winnable?
The single biggest factor in whether a homeowner wins or loses a contractor dispute in New York is documentation. New York state law requires a written contract for home-improvement work that exceeds $500. That contract must contain the contractor's name, address, and telephone number; the approximate start and completion date; a description of the work and materials; and a notice that the consumer has three business days to cancel the contract. (This is General Business Law Article 36-A.) If the contractor didn't give you a written contract, that statutory violation is itself a claim.
If you're a homeowner suing a contractor, also check whether the contractor was licensed. Home-improvement contractors must be licensed in New York City, Suffolk, Nassau, Westchester, Putnam, and Rockland counties, and the City of Buffalo. New York courts have consistently held that an unlicensed contractor may be barred from enforcing its contract, barred from recovering in quantum meruit, and may lose lien rights. In practice, that means an unlicensed contractor who sues you for payment is likely to lose — and you can use their unlicensed status as a defense if they countersue.
For NYC residents specifically, a Home Improvement Contractor Trust Fund Claim Process launched in 2023 offers a simplified path for consumers who filed a complaint with DCWP on or after January 1, 2016, participated in the mediation process without reaching a settlement, and contracted with a DCWP-licensed contractor who paid into the trust fund. That fund can pay up to $10,000 and doesn't require a court judgment.
What evidence wins these cases?
New York small claims court is informal, but judges still evaluate claims based on evidence. Here's what actually moves the needle in each case type, based on the statutory framework each claim rests on:
| Case Type | Governing Statute | Must-Have Evidence | Common Losing Move |
|---|---|---|---|
| Security Deposit | GOL § 7-108 | Move-in & move-out photos; key return receipt; certified mail proof that 14 days passed without itemization | No photos of unit condition; can't prove move-out date |
| Unpaid Wages | NYLL § 198; Article 6 | Pay stubs, time records, texts or emails showing hours worked; final paycheck date vs. next scheduled payday | No written record of hours; claiming an amount without a calculation |
| Contractor Dispute (Homeowner Suing) | GBL Article 36-A; Lien Law § 71-a | Signed written contract; photos of incomplete/defective work; competing estimate showing repair cost | No written contract; no proof of what work was agreed upon |
| Contractor Dispute (Contractor Suing) | GBL Article 36-A; local licensing laws | Valid license for the county where work was done; signed contract; receipts for materials; completion photos | No local license — bars recovery entirely in many counties |
What happens after I win — and how do I collect?
A judgment is not a check. If the defendant doesn't pay voluntarily, you have to start collection — wage garnishment, bank levy, or a property lien — and each of those is a separate court process. In New York, the post-judgment interest rate is 9% per year under CPLR § 5004, the highest statutory rate among large states. Judgments are enforceable for 20 years under CPLR § 211(b) and accrue that 9% interest annually.
There's also a built-in incentive for defendants to pay promptly. If any amounts remain unpaid upon the expiration of 90 days following issuance of judgment, or 90 days after expiration of the time to appeal, the total amount of judgment shall automatically increase by fifteen percent under NYLL § 198. That applies to wage judgments specifically — and it's a detail worth mentioning in a demand letter before you file.
About SmallClaims: SmallClaims is an independent, founder-run tool that turns plain-English answers into small claims court document drafts for consumers handling their own cases. Our guides cover filing, evidence, and judgment collection. Court rules change over time, so verify the current requirements with your local court before you file.
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SmallClaims is an independent, founder-run tool that turns plain-English answers into small claims court document drafts for consumers handling their own cases. Our guides cover filing, evidence, and judgment collection. Court rules change over time, so verify the current requirements with your local court before you file.
Get started →Frequently asked questions
My landlord missed the 14-day deadline to return my security deposit. Does that mean I automatically get the full deposit back?
Under New York General Obligations Law § 7-108, a landlord who fails to provide both the itemized statement and any remaining deposit within 14 days of move-out forfeits the right to retain any portion of the deposit — even if there was legitimate damage. The clock starts when you vacate and return the keys. Send a certified demand letter citing § 7-108 as soon as the deadline passes, so you have documentation that you gave the landlord notice before filing in small claims court. In addition to recovering the full deposit, a court that finds the landlord acted willfully can award punitive damages up to twice the deposit amount. Keep every piece of move-out evidence: photos, key return confirmation, and your forwarding address communication.
My employer owes me about $3,500 in unpaid overtime. Should I file with the NYSDOL or go straight to small claims court?
Both routes are valid. The NYSDOL route (Form LS 223) is free and the agency does the investigation work for you, but you give up some control over timing and outcome. Filing directly in small claims court lets you claim liquidated damages equal to 100% of wages owed under New York Labor Law § 198 — meaning a $3,500 unpaid overtime claim could yield up to $7,000 if your employer can't show a good-faith compliance belief. You also have a six-year statute of limitations under New York law for wage claims. The main downside of the court route for a $3,500 claim is that it exceeds the $3,000 cap in town and village justice courts, so you'll need to file in a city court where the cap is $10,000. Bring pay stubs, time records, and any texts or emails documenting your hours.
My contractor abandoned the job after taking a $6,000 deposit. What do I need to show in court?
Start with the written contract — New York General Business Law Article 36-A requires one for any home-improvement job over $500, and the absence of a written contract is itself a violation you can raise. Photograph the incomplete or unfinished work, get a competing contractor's written estimate for what it costs to complete or repair, and pull together every payment receipt. If the contractor was working in NYC, Suffolk, Nassau, Westchester, Putnam, or Rockland County, confirm whether they were licensed; an unlicensed contractor faces significant barriers to any counterclaim. Your $6,000 claim falls under the $10,000 NYC Civil Court cap, so you can sue for the full amount there. Also check whether the NYC DCWP Home Improvement Contractor Trust Fund (up to $10,000) applies before filing in court.
Can the other side bring a lawyer to my small claims hearing in New York?
In New York small claims court, both individuals and businesses can bring attorneys — there is no rule barring lawyers from appearing as there is in California. That said, many defendants choose not to because the cost of hiring a lawyer often exceeds the claim amount. If you're suing a corporation or LLC, be aware that some companies do send attorneys, particularly for contractor disputes or larger wage claims. The judge is still required to apply a "substantial justice" standard in small claims proceedings, which means the hearing is less formal than other courts and the judge may ask clarifying questions of both sides. Prepare a concise two-minute narrative of your claim, bring three copies of every document, and stay focused on the dollar amount and the specific statute the defendant violated.