With 2022 nearing its end, many states and counties look to pass new employment laws and regulations at the turn of the year. While this is not intended to be a complete update of New York employment law, this article details a few highlights in this area.
Changes are on the horizon for Albany County after the county Legislature passed several laws in October, including legislation meant to provide greater salary transparency for job seekers. Local Law “E,” sponsored by Albany Democrat Carolyn McLaughlin, requires county employers to post the minimum and maximum salary range when advertising an open position, promotion or transfer. Adopted on Oct. 11, 2022, this law amends Local Law No. 1 for 2013, “An Omnibus Human Rights Law for Albany County” and is set to go into effect 90 days after being signed by the Albany County executive.
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.
New York City’s new Salary Transparency Law will go into effect on Nov. 1, 2022. With this deadline for compliance fast approaching, we wanted to offer an update on the most recent guidance and interpretation to help our clients prepare for implementation of the new law.
Effective Dec. 31, 2022, the minimum wage in upstate New York (i.e., every part of the state except New York City, Nassau, Suffolk and Westchester counties) will increase from $13.20 to $14.20 per hour. The New York State Department of Labor recently announced this one dollar increase – which is approximately a 7.5% increase.
The minimum wage for employees working in New York City, Nassau, Suffolk and Westchester counties remains unchanged at $15.00 per hour. The minimum wage for fast food employees across the state also remains unchanged at $15.00 per hour. The minimum wage for upstate New York will continue to increase on an annual basis until the statewide minimum wage rate reaches $15.00 per hour regardless of locale. A chart summarizing the minimum wage rates throughout the state is available here.
Employers should keep two important things in mind as they prepare to comply with this forthcoming minimum wage increase. First, the minimum wage increase for goes into effect on Dec. 31, 2022. Therefore, non-exempt employees who work on New Year’s Eve should be paid the increased minimum wage for any hours worked. Second, the applicable minimum wage rate is determined with respect to where the work is performed – not where the employer is located. Thus, an employee working in New York City must be paid at the minimum wage rate applicable to downstate even if his or her employer is headquartered in upstate where the minimum wage has not yet reached $15.00.
An increase to the salary threshold for employees who are classified as exempt under New York’s executive and administrative exemptions has not been finalized for 2023. However, proposed regulatory text issued by the Department of Labor suggests the minimum weekly salary threshold for the executive and administrative exemptions will increase from $990 to $1064.25 per week (inclusive of board, lodging and other allowances and facilities) in upstate New York effective Dec. 31, 2022. Historically, the exempt salary threshold has been 75 times the minimum wage rate; this proposed increase, which will likely be implemented, roughly follows that pattern. There is no proposed increase to the salary threshold for exempt executive and administrative employees working in New York City, Nassau, Suffolk and Westchester counties, so that threshold will remain at $1,125 per week. There is still no state salary threshold to qualify for the professional exemption, so the federal threshold of $684.00 per week remains applicable for the professional exemption. Employees must continue to meet specified duties requirements to qualify for an exemption.
For any questions about this minimum wage increase, please contact Hannah Redmond, any attorney in Bond’s labor and employment practice or the Bond attorney with whom you are regularly in contact.
On Sept. 6, 2022, the National Labor Relations Board (Board) released a Notice of Proposed Rulemaking that would revise the standard for determining joint-employer status under the National Labor Relations Act (NLRA). The proposed standard would rescind and replace the joint-employer rule that has been in effect since April 27, 2020.
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 May 12, 2022, Mayor Adams signed into law the NYC Council Amendment to the recently enacted Salary Transparency Law. In addition to postponing the law’s effective date to Nov. 1, 2022, this amendment also clarifies three other aspects of the law:
On March 15, 2022, the U.S. Department of Labor, Office of Federal Contract Compliance Programs (OFCCP) issued a new directive addressing pay equity audits. The new Directive 2022-01 sets forth what OFCCP views as its apparent authority to obtain access to and review federal contractors’ pay equity audits that are conducted in connection with contractors’ compliance mandates.
On March 10, 2022, the U.S. Department of Labor’s Wage and Hour Division (which enforces the Fair Labor Standards Act, the Family and Medical Leave Act and other federal wage and hour laws) announced that one of its top enforcement priorities is to protect workers from retaliation for exercising their rights. The USDOL launched an anti-retaliation page on its web site and published a Field Assistance Bulletin on the subject of retaliation.
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.
On Dec. 22, the New York State Department of Labor (NYSDOL) published long-awaited proposed regulations relating to the second half of the NY HERO Act relating to workplace safety committees.
By way of brief background, on May 5, 2021 the state signed the NY HERO Act into law. The NY HERO Act added two new sections to the New York Labor Law: (1) New York Labor Law Section 218-b, regarding occupational exposure to airborne infectious disease, which created certain obligations for private employers and protections for employees, including the requirement to adopt an “airborne disease exposure prevention plan”; and (2) New York Labor Law Section 27-d, dealing with employee rights to form workplace safety committees. The first part of the NY HERO Act (NYLL 218-b) went into effect on July 4, 2021. The second part of the NY HERO Act (NYLL 27-d) went into effect on Nov. 1, 2021.