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.
The New York State Department of Labor issued final regulations making certain changes and additions to long-existing regulations regarding the New York WARN Act. As we reported previously, the revisions update the regulations to conform to certain statutory changes as well as provide clarification to other areas of the NY WARN law. The final regulations became effective June 21, 2023 and are identical to the proposed regulations issued by the Department of Labor on March 29, 2023.
On the heels of the Federal Trade Commission’s (FTC) proposed nationwide ban on the use of non-competition agreements with employees and other “workers,” the New York State Senate and Assembly are poised to consider a ban on the use of non-competition agreements within New York State.
Employers are well aware of the risks a disgruntled employee may pose during their employment and even after their employment has ended. Sometimes, however, employers do not discover an employee’s unscrupulous behavior until after an employee has sued their employer for violation of one or more employee protection statutes, i.e., the New York Labor Law (NYLL), Fair Labor Standards Act (FLSA) or New York State Human Rights Law (NYSHRL). These statutes, however, also contain prohibitions against retaliation, leading many employers to question whether they could or should countersue an employee for tortious conduct and potentially risk a claim for retaliation. The Second Circuit in Kim v. Lee, 2023 WL 2317248, 22-61 (2d Cir. March 2, 2023), shed some light on this topic and held that an employer’s counterclaim is retaliatory when it is baseless or frivolous. The Court did not, however, decide whether non-frivolous counterclaims might support a valid retaliation claim.
On March 3, 2023, a bill amending the New York State pay transparency law was signed into law by Gov. Hochul, reflecting changes that the governor requested in exchange for her approval of the law in December 2022. The effective date of the amendments are the same as the original version of law, Sept. 17, 2023.
On Jan. 12, 2023, the New York State Department of Labor (DOL), in consultation with the New York State Division of Human Rights, released a revised sexual harassment prevention model policy for public review and comment. The agencies collected public input regarding the policy revision in late 2022, and DOL is providing a 30-day comment period for feedback prior to the revision being finalized. The comment period will run through Feb. 11, 2023.
On Nov. 21, 2022 New York Governor Kathy Hochul signed a Bill A8092-B/S1958 into law that expands retaliatory workplace protections for employees. The newly signed law amends New York Labor Law (NYLL) Section 215 to prohibit an employer from punishing or disciplining an employee who takes time off work for a “lawful absence” protected by federal, state or local law.
On Sept. 30, 2022, State Labor Commissioner Roberta Reardon announced that she has accepted the New York Farm Laborers Wage Board’s recommendation to lower the overtime threshold for agricultural workers from 60 hours down to 40 hours. During its Sept. 6, 2022 meeting, the Board voted 2-1 in favor of submitting its report recommending a 10-year phase in schedule for a 40-hour threshold. The overtime threshold will be reduced by four hours every two years beginning on Jan. 1, 2024 until it reaches 40 hours in the year 2032.
On June 3, 2022, the New York State Legislature passed Senate Bill S9427/Assembly Bill A10477 (the Bill)—a new wage transparency law that would amend the New York Labor Law to add new Section 194-b. If enacted, the new law would require covered employers to disclose compensation or a range of compensation to applicants and employees upon issuing an employment opportunity for internal or public viewing, or upon employee request. The Bill is intended to enhance transparency around compensation and reducing any existing wage disparities among employees.
On Dec. 24, 2021, the New York State Department of Health (NYSDOH) issued updated isolation and quarantine guidance for fully vaccinated healthcare and other essential workers infected with COVID-19, allowing them to return to work after five days of isolation, so long as each worker is asymptomatic, or their symptoms have mostly resolved.
On Dec. 27, 2021, the Centers for Disease Control and Prevention (CDC) issued updated guidance for isolation and quarantine for the general population, which New York State also adopted on Jan. 4, 2022, replacing its December 24 guidance, with the exception of New York State maintaining a separate standard for healthcare workers. Following is a description of the current quarantine standards for the general population and healthcare workers in New York State.
On Dec. 22, 2021, New York published its final paid sick leave regulations. These regulations are identical to the proposed regulations, initially published on Dec. 9, 2020. New York Paid Sick Leave (PSL) requires employers to provide paid leave to employees relating to an employee’s or an employee’s family member’s medical needs, or for reasons relating to domestic violence and similar offenses. Since Jan. 1, 2021, employers have been required to provide this leave to all New York employees.