All contractors and subcontractors who submit bids or perform construction work on public work projects or private projects covered by Article 8 of the Labor Law are required to register with the New York State Department of Labor (NYSDOL) by Monday, Dec. 30, 2024, pursuant to N.Y. Labor Law Section 220-i. The new law is designed to ensure contractors and subcontractors working on public projects or projects receiving public funding “do not have previous labor law violations and will abide by the New York Labor Laws and Regulations, including prevailing wage requirements.”
Who is Covered?
Section 220-i(a) defines a contractor as “any entity entering into a contract to perform construction, demolition, reconstruction, excavation, rehabilitation, repair, installation, renovation, alteration, or custom fabrication.” Under 220-i(b), a subcontractor is any entity who subcontracts with a contractor to perform any of the tasks mentioned in the contractor definition.
What is Covered?
Private projects subject to Article 8 of the Labor Law include those covered by Labor Law Sections 224-a (public subsidy funded projects), 224-d (renewable energy systems), 224-e (broadband projects), and 224-f (climate risk-related and energy transition projects, and roadway excavations).
Registration Requirements
Contractors and subcontractors will need to be able to provide the following information:
Business name and principal address
Contact phone number
Status as a person, partnership, association, joint stock company, trust, corporation, or other form of business entity
The name, address, and percentage interest of each person with an ownership interest
The names and addresses of the corporation’s officers (if a publicly traded corporation)
Tax Identification Number (FEIN)
Unemployment Insurance Registration Number
Workers’ Compensation Board Employer Number
Outstanding wage assessments
Federal or state debarment history over the last eight years
Final determinations of violations of any labor laws or employment tax laws including but not limited to:
Workers’ compensation coverage requirements
Payment of workers’ compensation premiums
Deduction and payment of income taxes
Payment of unemployment insurance contributions
Payment of prevailing wage
Final determinations of violations of any workplace safety laws or standards, including federal Occupational Safety and Health Act (OSHA) standards
Participation in a New York State Apprenticeship Program, if applicable
Status as a New York State certified Minority or Women-owned Business Enterprise (MWBE), if applicable
Proof of Workers’ Compensation Insurance Coverage
Penalties for Failing to Register
Pursuant to Section 220-i(8), “a contractor bidding on a contract for public work knowing it is not registered, or allow[ing] a subcontractor to commence work on a covered project that it knows or should have known is not registered,” can be subject to a fine of up to $1,000. Subcontractors that knowingly engage in projects that are covered but unregistered will be subject to the same penalty. NYSDOL encourages all contractors and subcontractors to register as soon as possible to avoid negatively impacting a bidding period or project schedule. Contractors are responsible for verifying that all of their subcontractors are properly registered.
If approved, contractors and subcontractors will receive a Certificate of Registration electronically. If registration is not approved, contractors and subcontractors can request a hearing within 30 days of notification.
As 2024 comes to a close, New York prepares for the rollout of new employment laws and regulations in the coming year. While not an exhaustive summary, this article highlights key developments and updates in employment law for 2025.
Minimum Wage Increases. Effective January 1, 2025, the hourly minimum wage for the New York metro area, which includes New York City, Westchester and Long Island, will increase from $16.00 to $16.50. Wages across the rest of New York State (excluding New York City, Westchester and Long Island) will increase from $15.00 to $15.50. Also, effective January 1, 2025, are changes to the tip credit for food service workers. In New York City, Westchester and Long Island, the tip credit for food service works will be increased from $5.35 to $5.50. For service workers, the tip credit will be increased from $2.65 to $2.75. Other than New York City, Westchester and Long Island, the tip credit for food service workers in New York will be increased from $5.00 to $5.15 and the tip credit for service workers will be increased from $2.50 to $2.60.
Salary Exempt Threshold Changes. Employees may be exempt from overtime requirements depending on their job duties.On January 1, 2025, the new weekly minimum salary threshold for exempt status will increase to $1,237.50 from $1,200.00 in New York City, Westchester and Long Island. For the rest of New York State, the new weekly minimum salary is $1,161.65 per week, up from $1,124.20.
New York Retail Worker Safety Act. On September 5, 2024, Governor Kathy Hochul signed the New York Retail Worker Safety Act into law. Covered retail employers have until March 4, 2025 to ensure compliance with the law’s new requirements for the adoption of polices and training for workplace violence prevention. Specifically, the Act requires a workplace violence prevention policy that (1) outlines a list of factors or situations in the workplace that might place retail employees at risk of workplace violence, (2) outlines methods that the employer may use to prevent incidents of workplace violence, (3) includes information concerning the federal and state statutory provisions concerning violence against retail workers and remedies available to victims of violence, and (4) states that retaliation against individuals who complain of workplace violence, or who testify or assist in any is unlawful. The Act also requires a workplace violence prevention training program providing, among other things, information on the requirements under the law, active shooter drills and training on areas of previous security problems. Finally, effective January 1, 2027, covered retail employers with 500 or more retail employees nationwide must provide access to “panic” buttons throughout the workplace to summon immediate assistance from law enforcement.
End of COVID-19 Paid Sick Leave. COVID-19 Paid Sick Leave expires on July 31, 2025. After July 31, 2025, employees will need to use existing paid leave, such as New York State’s Paid Sick Leave or New York City’s Earned Safe and Sick Time to manage care or isolate for COVID-19.
Paid Prenatal Leave. Effective January 1, 2025, employers are required to provide employees with 20 hours of prenatal personal leave during any 52-week calendar period. Paid prenatal leave is to be provided in addition to other existing sick leave. The leave may be taken for health care services such as physical examinations, medical procedures, monitoring and testing and discussions with health care providers related to pregnancy. Paid prenatal leave may be taken in and must be paid in one-hour increments. Additionally, the use of the language “their pregnancy” indicates the law covers only pregnant employees and not spouses. The law does not state employees must work for a specified period of time before being eligible for prenatal leave. Employers are not required to pay an employee for unused paid prenatal leave upon termination, resignation or other separation from employment.
In light of these recent and upcoming employment law developments, employers should review and update their employee handbooks, bring their job advertisements into compliance and revise their hiring practices as they relate to employee policies and wage practices.
On September 5, 2024, Governor Kathy Hochul signed the Retail Worker Safety Act (A 8947 / S 8358) into law. It requires certain New York retailers to adopt safety measures to address and prevent workplace violence.
On Nov. 22, 2023, Gov. Kathy Hochul signed into law the “Freelance Isn’t Free Act” (the Act or FIFA), which was amended on March 1, 2024. The Act is codified in Article 44-A of the New York General Business Law. Article 44-A of the General Business Law creates several protections for freelance workers retained as independent contractors. The Act is intended to ensure that freelance workers receive timely compensation for all services performed. The law goes into effect on Aug. 28, 2024.
The Act Applies to “Freelance Workers” and “Hiring Parties”
Subject to specified exceptions, the Act defines freelance workers as “any natural person or organization composed of no more than one natural person, whether or not incorporated or employing a trade name, that is hired or retained as an independent contractor by a hiring party to provide services in exchange for an amount equal to or greater than eight hundred dollars, either by itself or when aggregated with all contracts for services between the same hiring party and freelance worker during the immediately preceding one hundred twenty days.” In short, a freelance worker is any individual hired to provide services of $800 or more as part of a one-time transaction or over the course of several transactions with the same hiring party in the preceding 120 days.
Individuals engaged in the practice of law, licensed medical professionals, construction contractors, and sales representatives as defined by Section 191-a of the Labor Law, are excluded from the definition of freelance worker.
The Act broadly defines “hiring party” as “any person who retains a freelance worker to provide any service,” except local, state, and federal governments. Given the breadth of this definition most individuals and organizations that hire independent contractors to provide services will need to comply with the Act’s requirements.
The Act’s Primary Requirements
The Act imposes several requirements for hiring parties engaging freelance workers. As discussed in greater detail below, the main requirements pertain to written contracts, timely payment and anti-retaliation. The Act also creates an administrative complaint procedure for freelance workers whose rights have been violated as well as a private right of action.
Written Contract
Most significantly, the Act requires a hiring party that retains the services of a freelance worker to reduce the contract to writing. Written agreements must include:
the name and mailing address of both parties;
an itemization of all services to be provided by the freelance worker, the value of services to be provided, and the rate and method of compensation;
the date on which payment by the hiring party is due or the mechanism by which the due date for payment will be determined; and
the date by which the freelance worker must provide a list of services rendered under the contract in order to ensure timely payment.
The Act explicitly states that freelance workers and hiring parties may not waive the rights provided under the Act, and any contract provision attempting to do so shall be void and unenforceable.
A copy of the written contract must be furnished to the freelance worker (either physically or electronically) and must be retained by both parties. The hiring party must retain a copy of the contract for a minimum of six years. Though not explicitly stated, the Act suggests that the burden of preparing the written contract falls on the hiring party.
Upon request, hiring parties must also make their contracts with freelance workers available to the attorney general. The failure to produce a contract upon request carries significant consequences, including a presumption that the terms presented by the freelance worker are the agreed upon terms.
Model contracts will be made available on the Department of Labor’s website.
Timely Payment
The Act requires that freelance workers be paid for their services in a timely manner. For purposes of the Act, this means that freelance workers must be paid on or before the date compensation is due under the terms of the contract; or if the contract does not state when payment is due, payment must be made within 30 days of completion of the freelance workers’ services.
Once a freelance worker has begun performing services under the contract, the hiring party may not require that the freelance worker accept less pay than agreed upon, as a condition of timely payment.
Discrimination and Retaliation Prohibited
The Act prohibits discrimination and retaliation against freelance workers who exercise or attempt to exercise their rights under the Act.
Avenues for Redress
The New York State Attorney General is authorized to investigate alleged violations of the Act and to provide appropriate remedies. The Attorney General may bring an action on behalf of the State to enjoin a hiring party from engaging in acts that violate FIFA and to obtain restitution for affected freelance workers.
The Act separately creates a private right of action for aggrieved freelance workers. Such claims may be brought in a court of competent jurisdiction for up to two or six years, depending on the nature of the alleged violation. Claims alleging violations of the written contract requirement may be brought for up to two years. Claims alleging violations of the timely payment requirement or the anti-discrimination and anti-retaliation provisions may be brought for up to six years.
Penalties
In the event that the Attorney General pursues such a civil action, civil penalties may be assessed against the hiring party in the amount of $1,000 for a first violation, $2,000 for a second violation and $3,000 for a third or subsequent violation. Where there is evidence of a pattern or practice of violations under the Act, civil penalties may be imposed of not more than $25,000.
The damages and penalties available to a plaintiff for violations of the Act depend on the nature of the violation. For example:
a hiring party’s failure to provide timely payment per the terms of a contract may result in double damages, injunctive relief, attorneys’ fees and costs and other remedies as appropriate;
a civil penalty of $250 may be imposed as a result of a hiring party’s failure to provide a freelance worker with a written contract; and
a freelance worker who prevails on a retaliation claim under the Act, may be entitled to statutory damages equal to the value of the underlying contract for each violation, in addition to other damages.
New York City’s Act
For those residing and doing business in New York City, the FIFA requirements noted above may not be entirely unfamiliar. The passage of FIFA follows New York City’s enactment of similar legislation in 2017. In fact, FIFA is largely modeled after the New York City Freelance Isn’t Free Act (the City Act), which also requires written contracts and timely payment.
The terms “freelance worker” and “hiring party” are defined similarly under FIFA and the City Act, except that the construction contractor exception is not recognized under the City Act’s definition of freelance worker.
Similar to FIFA, the City Act requires a written contract whenever a hiring party retains the services of a freelance worker and the contract has a value of $800 or more either by itself or when aggregated with all contracts for services between the same parties in the preceding 120 days. The terms that must be included in such a written contract are similar to the requirements under FIFA, except that the City Act does not require freelance workers to provide a list of services rendered under the contract in order to ensure timely payment.
Both FIFA and the City Act also contain identical provisions regarding: (i) the timeliness of payments to be made to freelance workers; and (ii) the prohibition of discrimination or retaliation against freelance workers who exercise their rights under applicable law. Like FIFA, the City Act creates a private right of action and uses the same two and six year limitation periods described above.
The key differences between FIFA and the City Act include FIFA’s record retention requirement and its requirement that the hiring party furnish a copy of the written contract to the freelance worker. The City Act is silent on these matters. The City Act also establishes its own administrative complaint process, through which freelance workers may file complaints with the City’s Office of Labor Policy & Standards.
Though FIFA and the City Act are largely coextensive, FIFA specifically states that it shall not be construed or interpreted to override or supplant any of the provisions of the City Act.
Conclusion
Individuals and organizations that engage the services of freelance workers should prepare to comply with the Freelance Isn’t Free Act requirements by reviewing internal processes for engaging the services of freelance workers and independent contractors before the effective date of Aug. 28, 2024. Among other things, this includes preparing written contracts that comply with the requirements set forth above when contracting with covered freelance workers.
If you have any questions about the Freelance Isn’t Free Act, or any of the information contained in this memo, please contact Rebecca Kimura, Hannah Redmond or the Bond attorney with whom you are in regular contact.
Effective June 19, 2024, New York State Labor Law Section 206-c requires all private and public employers to provide 30 minutes of paid break time for employees to express breast milk when the employee has a reasonable need to express breast milk. Prior to enactment of this law, New York State employers were only required to provide reasonable unpaid break time for breast milk expression.
The New York State Department of Labor (NYSDOL) has issued guidance FAQs on the amended law. NYSDOL’s guidance provides that paid break time must be permitted as often as an employee reasonably needs to express breast milk. NYSDOL has issued a template Policy on the Rights of Employees to Express Breast Milk in the Workplace which provides:
HOW OFTEN DURING THE WORKDAY CAN I TAKE BREAKS TO PUMP BREAST MILK? The number of paid breaks an employee will need is unique to each employee. Your employer must accommodate you whenever you reasonably need to take a break to express milk.
Employees must also be permitted to use existing paid break or meal time if they need additional time for breast milk expression beyond the paid 30 minutes, and employers may not require employees to make up this missed work time. Employees are entitled to paid breaks for breastmilk expression for up to three years following childbirth.
Employers are required to provide written notice of breast milk expression rights to all employees at the time of hire and then annually thereafter. Additionally, notice must be provided when an employee returns from childbirth leave.
Employees must provide reasonable advance notice of their need for lactation breaks. As a reminder, employers must continue to provide a room or other location to express breast milk once an employee submits a written request to their direct supervisor or an individual designated by the employer to process lactation room requests. Employers must respond to lactation room requests in writing within five days.
Lactation rooms must have the following:
Be close to an employee’s work area
Provide good natural or artificial light
Be private – both shielded from view and free from intrusion
Have accessible, clean running water nearby
Have an electrical outlet (if the workplace is supplied with electricity)
Include a chair
Provide a desk, small table, counter or other flat surface
Ability to store pumped breast milk in a refrigerator if one is available
Employers are prohibited from discriminating in any way against an employee who chooses to express breast milk in the workplace.
New York has long protected its residents from discrimination in the job hiring process with the New York State Human Rights Law (NYSHRL), which was originally passed in 1945. New York City also has its own Human Rights Law (NYCHRL) that further covers discrimination in job hiring.
Governor Hochul’s 2025 Executive Budget Proposal released last week includes a number of significant legislative proposals that would directly impact employers in New York state.
On Nov. 17, 2023, Gov. Kathy Hochul signed Senate Bill S.3255, which amends Section 297 of the New York Executive Law by extending the statute of limitations for filing complaints of unlawful discrimination with the Division of Human Rights (DHR) to three years.
On Sept. 15, 2023, New York State Gov. Kathy Hochul signed an amendment to a New York Labor Law that would invalidate certain intellectual property provisions in employment agreements, effective immediately. Under this amendment, Section 203-f, any provision in an employment agreement that requires employees to assign the rights to inventions to their employer will now be unenforceable if the invention was developed by the employee using the employee’s own property and time. The introduction of Section 203-f has significant implications for employers wishing to secure patent protection of inventions made by employees while under an employment contract. To obtain the best protection possible,it is recommended that New York employers review their employment agreements with respect to restrictions and assignment clauses to ensure compliance with this new labor law.
On Sept. 14, 2023, Gov. Kathy Hochul signed three pieces of legislation into law, all of which are reflective of Gov. Hochul’s ongoing efforts to strengthen workers’ rights in New York State.
Written Notice of Unemployment Benefits
Bill (S. 4878-A/A. 398-A) amends Section 590 of the Labor Law. Under this new legislation, employers must provide written notice of eligibility for unemployment benefits to any employee who has been terminated, temporarily separated, experienced a reduction in hours or any other interruption of continued employment that results in total or partial unemployment. This information must be disclosed on a form furnished or approved by the Department of Labor (DOL).
The new law will take effect on Nov. 13, 2023.
Personal Account Information Disclosure
Beginning March 12, 2024, employers are prohibited from requesting, requiring or coercing an employee or job applicant to: (i) disclose a username and password or other login information in order to access a personal account through an electronic communication device; (ii) access a personal account in the employer’s presence; or (iii) reproduce information contained within a personal account through unlawful measures. This new legislation, which amends the Labor Law to add section 201-i, prohibits an employer from discharging or disciplining an employee or refusing to hire an applicant for failure to disclose such information.
This law is also subject to certain exceptions and limitations. For example, an employer may require disclosure of personal information in order to access nonpersonal accounts that allow access to the employer’s internal computer or information systems. Employers may also view, access and rely on information obtained through the public domain. The law also allows an employer to obtain login information for accounts provided by the employer where the account is used for business purposes and the employee was provided prior notice of the employer’s right to inquire about such information.
An employer is also permitted to access an electronic communications device which is paid for in whole or in part by the employer where the provision of or payment for such device was conditioned on the employer’s right to access. However, the employee must have been provided with prior notice of the condition and explicitly agreed to it. Nevertheless, the employer is still prohibited from accessing any personal accounts on the device.
This law excludes law enforcement agencies, fire departments and departments of corrections and community supervision.
DOL Notices to Unemployment Applicants
Under this new legislation, the DOL is now required to provide notice to unemployment applicants of the supplemental nutrition assistance program (SNAP) and the special supplemental nutrition program for women, infants and children (WIC). This new law takes effect Jan. 12, 2024.
If you have any questions about the information presented in this memo, please contact Kali Schreiner, any attorney in Bond’s labor and employment practice or the attorney at Bond with whom you are regularly in contact.
On October 4, 2023, the COVID-19 vaccine mandate for health care workers in New York will officially be repealed. On September 18, 2023, the New York State Department of Health (NYSDOH) submitted a Notice of Adoption to repeal 10 N.Y.C.R.R. 2.61 (the Regulation), which was the emergency regulation requiring covered health care employers to ensure that their personnel were fully vaccinated against COVID-19.
New York State's pay transparency law becomes effective on Sept. 17, 2023. Labor Law § 194-b requires employers to disclose salary and wage ranges for advertised jobs and promotions.
The law applies to employers with four or more employees and covers jobs that will be physically performed, at least in part, in New York State, as well as remote-work positions that report to a supervisor in New York.
