Unpaid wages, threatening to sue.

There are many reasons one might have a change of heart about initiating a lawsuit.
The important thing to note is that one never wishes to threaten anyone.
Changing your mind snt a threat.
The essence of this ges to sincerity and specific intent.
One could form the intent to sue, for example, but become ill and unable to sue.
That doesn't conflict with a sincere intent.

I'd rethink bringing a small Liam's action.
Why?
You'd probably prevail, but you'd probably never collect a dime.

You'd end up with a worthless piece of paper saying Joe owes you $2 gazillion bucks.
But, if you never collect, it'll only bring you more frustration and angst.

Sue in a superior court, if the amount in question is significant, or walk away.

 

You do not have an obligation to send a demand letter prior to launching a lawsuit. However, since a demand letter often prompts the recipient to pay the amount in dispute, it may behoove you to do so.

Nor would you appear to violate the law (in New York or any other state) by sending a valid demand letter and subsequently not proceeding with a lawsuit if your demand is not met.