Luxury Fashion Designer Andrea Marshall Indicted for $54,000 Wage Theft Scheme

NEW YORK – The owner of a luxury fashion brand whose garments sold for thousands of dollars at high-end retailers was indicted Wednesday on charges she ran her Manhattan factory as a sweatshop, stealing approximately $54,000 from her employees.

Manhattan District Attorney Alvin L. Bragg, Jr., announced on June 17 that Andrea Marshall, 44, and her company, Salon 1884 LLC, face a multi-count indictment in New York State Supreme Court. The charges allege that between August 2023 and June 2026, Marshall exploited at least nine workers, requiring them to work excessive hours while systematically failing to pay them for their labor.

Marshall and Salon 1884 are each charged with one count of Grand Larceny in the Second Degree, one count of Scheme to Defraud in the First Degree, one count of Effect of Failure to Secure Compensation, and five counts of Failure to Pay Wages in Accordance with the Labor Law. The indictment accuses Marshall of stealing wages for approximately 924 hours of labor.

“As alleged, Andrea Marshall, the owner of Salon 1884, exploited and stole approximately $54,000 in wages from her employees while selling luxury garments,” District Attorney Bragg said in a statement. “She preyed on the significant power imbalance of her employees who relied on the promised wages for housing and basic living expenses, feared retaliation, and lacked the financial resources to pursue legal recourse.”

Founded by Marshall in 2021, Salon 1884 was positioned as a high-end brand, with its clothing sold through prestigious retailers like Neiman Marcus, Moda Operandi, and Net-A-Porter. The company’s establishment in the heart of the Garment District on West 39th Street was initially seen as a rare sign of growth for an area long in decline. However, prosecutors paint a starkly different picture of the company’s internal operations.

According to court documents and statements, Marshall’s seamstresses were subjected to grueling working conditions. They routinely worked more than 40 hours per week, with some shifts lasting between 12 and 17 hours. The District Attorney’s office alleged that in at least two instances, employees worked more than 100 hours in a single week, including consecutive overnight shifts to meet production demands.

Despite the intensive labor, workers allegedly faced chronic nonpayment. The indictment details how Marshall would delay or withhold payments through a series of shifting explanations and requirements. Text messages revealed in the investigation show workers repeatedly pleading with Marshall for their earned wages. One worker explained she needed the money to send to her family in Ecuador, where her son was sick.

Payments, when they were made, were often partial and delivered through Zelle, checks, or cash. In some cases, Marshall allegedly offered workers free clothing from her collection instead of their paychecks. Bragg also noted that the business allegedly operated without workers' compensation insurance, a key legal protection for employees in case of a work-related injury, and was not properly registered with the Department of Labor.

The indictment is the latest action from the Manhattan District Attorney’s Worker Protection Unit, which was launched in 2023 to combat wage theft and worker exploitation. According to Bragg’s office, the unit has secured 12 indictments and recovered $2.4 million in stolen wages through convictions and settlements since its inception. The investigation into Salon 1884 was conducted in cooperation with the New York State Department of Labor.

This high-profile case serves as a severe warning about the critical importance of labor law compliance. For small and mid-sized businesses, especially those experiencing rapid growth, the temptation to cut corners on payroll and HR can be immense, but the risks are catastrophic. We often see business owners who are experts in their craft but lack the financial and regulatory knowledge to manage a growing workforce. This can lead to unintentional, yet illegal, practices like misclassifying employees, failing to pay overtime correctly, or not securing mandatory workers' compensation insurance. The consequences, as seen here, extend far beyond financial penalties to include criminal charges and irreparable brand damage. Proactive compliance is not an expense; it is a fundamental safeguard for the business and its leadership. Ensuring every aspect of your payroll and labor practices is airtight is essential, which is where expert guidance on tax preparation and compliance becomes invaluable. To avoid these pitfalls and build a sustainable business, contact C&S Finance Group LLC at csfinancegroup.com for a comprehensive review of your compliance framework.

The case against Marshall and Salon 1884 will now proceed through the court system. Business owners and labor advocates in New York’s fashion industry will be watching the proceedings closely, as the outcome could signal a new level of scrutiny on labor practices in the sector. The District Attorney's office stated the investigation is ongoing and encourages any other potential victims to come forward, regardless of their immigration status.