New Year Update on New York State and New York City Employment Laws
Recently, both New York State (“NYS”) and New York City (“NYC”) have enacted a significant number of new employment and labor laws. The update summarizes the key laws insurance industry employers should be following and the penalties for violations. While NY is a leader in this area of progressive employment practices, neighboring states have similar laws and copycat legislation is sure to follow.
NYS Minimum Wage Law
The statewide minimum wage has increased depending on employer location, size and industry.
What if you fail to comply? Liability for wage underpayments and liquidated damages, plus interest, civil and criminal penalties.
NYS Salary Threshold Increased
for Exempt Employees
What if you fail you comply? Administrative and executive employees who are not paid these salary minimums must be paid overtime for any work hours over forty in a workweek and liable for a one-hundred percent penalty on any unpaid overtime amount, plus interest and may be held personally responsible for unpaid wages.
NYC Earned Sick Time Act
(“ESTA”)/Earned Safe and Sick
Time Act (“ESSTA”)
What if you fail you comply? Civil penalties of $500 per employee for each first-time violation. Subsequent violations may result in fines up to $1,000. Further damages include paying three times the wages that should have been paid for each time an employee took sick leave but was not paid.
NYS Paid Family Leave Law
What if you fail you comply? May be criminally liable for a misdemeanor and civilly liable for a fine up to $500, or imprisonment of up to one year, or both. Subsequent violations may result in fines up to $2,500.
NYC and NYS Anti-sexual Harassment Laws
What if you fail you comply? May be criminally liable for a misdemeanor and civilly liable for a fine up to $500, or imprisonment of up to one year, or both, as well as held liable for compensatory, emotional injury and punitive damages. Also, may be civilly liable for a fine up to $125,000 if it’s a willful violation. Employers are liable for compensatory, emotional injury and punitive damages for sexual harassment.
NYS Corrections Law 23A and
NYC Fair Chance Act
What if you fail you comply? Employers who violate Article 23A, regarding the failure to hire employees with a prior criminal record, may be held criminally liable for a misdemeanor and civilly liable for a fine up to $500, or imprisonment of up to one year, or both. Also, liability for lost wages and other damages to the employees affected and subject to civil penalties of up to $125,000. A willful violation may be subject to a civil penalty of up to $250,000.
NYC Stop Credit Discrimination in Employment Act
What if you fail you comply? Liability for lost wages and other damages and may be subject to civil penalties of up to $125,000 for employment decisions made on the basis of an applicant’s credit history. A willful violation may be subject to a civil penalty of up to $250,000.
NYC Salary History Ban
What if you fail you comply? Liability for lost wages and other damages for improper prior salary questions to the employees affected and subject to civil penalties of up to $125,000. A willful violation may be subject to a civil penalty of up to $250,000.
NYC Temporary Schedule
Change Law
What if you fail you comply? Liability for compensatory damages or other relief to the employee and a $500 civil penalty for each violation per employee. Additional penalties for retaliation, including a $2,500 fine for terminating an employee, plus reinstatement and back pay..
NYC Fair Work Week Laws
What if you fail you comply? Liability for compensatory damages or other relief to the employee and a $500 civil penalty for an improper scheduling violation per employee.
NYC Freelance Isn’t Free ACT (“FIFA”)
What if you fail you comply? Penalties including statutory damages, double damages, injunctive relief and attorney’s fees for misclassifying employees as independent contractors.
NYC Cooperative Dialogue Law
What if you fail you comply? Liability for lost wages and other damages to the employees affected and may be subject to civil penalties of up to $125,000. A willful violation for failure to accommodate disabled employees may be subject to a civil penalty of up to $250,000.
NYS Wage Theft Prevention Act (“WTPA”)
What if you fail you comply? Employers who fail to provide employees with a written notice at the time of hiring and/or accurate wage statements may be fined up to $5,000 per employee per violation. Discriminating against employees is subject to injunctive and equitable relief, liquidated damages (not more than $20,000), lost compensation, reinstatement or front pay, costs and attorney’s fees.
Sexual and Other Reproductive Decisions
On December 20, 2018, the NYC Council added to the list of protected classes. The new categories include arrangements relating to reproductive health included, but not limited to, fertility-related medical procedures, STDs testing and treatment, family planning services, birth control drugs and supplies, emergency contraception, sterilization procedures, pregnancy testing and abortion. The bill is intended to protect women and men from ever fearing whether their personal health and reproductive choices will risk their jobs.
What if you fail to comply? Standard penalties will be provided in the new law which will go into effect 120 days after the mayor signs the bill. Employers should revise their Handbooks and company policies to list these new categories protected from discrimination and also make sure to insulate any information relating to employees’ reproductive health from any employment decisions concerning that individual. A policy should also be added to reflect the latest lactation rules passed by the Council.
Compliance Is Important
What if you fail you comply? In view of the stiff penalties for violations of everyday employment decisions, knowledge of these laws and compliance is an indispensable prerequisite for every NYC, NYS employer.
In this day and age of increasing legislation on both the state and local level, it is incumbent on insurance industry executives, and, in particular, Human Resources officials, to be up-to-date on these employment law regulations.
