In the State of New York, employment laws are called labor standards, although they function the same way as laws do. The requirements in these laws safeguard workers while also preserving the rights of employers to make wise economic decisions.
If an individual has any questions about New York employment laws, they should consult with a local attorney in New York.
What Does Employment “At Will” Mean?
In the State of New York, employment is considered to be at will. This means that employers can terminate employees without good reason if there is no employment agreement that limits termination.
It also means that employees are allowed to quit their jobs at any time without worrying about violating their contracts or facing any other legal consequences. However, it is important to note that there are exceptions to the at-will rule.
Employers are not permitted to dismiss employees based on any of the following reasons:
- Race;
- Nationality;
- Creed;
- Age;
- Disability;
- Gender;
- Sexual preference; or
- Relational status.
In addition, New York laws protect against wrongful termination for employees who:
- Engage in legal non-work related consumption of consumables;
- Political or recreational activities;
- Union participation.
Defense Against Discrimination
Under federal laws, discrimination at work is illegal. There are numerous protected classes under employment discrimination laws, including:
- National origin or race;
- Religion;
- Sex, including:
- Pregnancy;
- Childbirth;
- Related medical issues;
- Disability;
- Age, if 40 or older;
- Constitutional status;
- Genealogical data;
- Age, lowering the bar to those who are at least 18 is prohibited by New York state law;
- Relational status;
- Sexual preference;
- Sexual orientation as perceived;
- When not at work, legitimate recreation;
- Military service or status;
- Political involvement;
- Respecting a holy day of rest;
- Political involvement;
- Utilizing a service dog; and
- Status as a victim of domestic abuse.
What Are a Few Defenses Against Sexual Harassment?
Sexual harassment is prohibited under federal laws as well as under strict rules in the State of New York. Sexual harassment can include:
- Any unwanted sexual approach;
- Requests for sexual favors;
- Any verbal or physical behavior of a sexual nature.
Sexual harassment laws are violated by agreeing to a sexual proposal as a condition of employment, whether stated openly or impliedly. In addition, it is illegal to base job choices on rejecting an inappropriate proposal or advance.
It is prohibited if the outcome or goal of the advance unreasonably interferes with an individual’s ability to perform their job or otherwise results in a hostile, offensive, or intimidating work environment.
New York Reporting of New Hires
When a New York employer hires a new employee, the state has to be notified within 20 calendar days of the employment date. Information that is necessary to report new hires includes:
- Name of the employee;
- Address;
- Hire date;
- Social Security Number;
- Name of the employer;
- Address of the employer;
- IRS Employer ID Number (EIN); and
- If the employee meets the requirements for dependent health insurance, along with the eligibility date.
Instead of or in addition to sending a copy of Form W-4, an employer can also apply online through the New York New Hire Online Reporting Center by submitting a copy of Form IT-2104. The proper form must be sent to the New York State Department of Taxation and Finance by mail or fax.
“Ban the Box” Laws
An employer should be aware of any Ban the Box limitations or laws that are specific to the city or county, for example, those in Buffalo and New York City, although they may not be state-wide laws. These laws may involve eliminating inquiries regarding convictions and arrests as well as possibly deferring a background check until later in the hiring process.
The best practice for employers who have employees in New York City and upstate New York is to apply the law uniformly throughout the organization rather than only to individuals working in the area covered by the statute.
Ban on New York Salary History
Under the New York State Salary History Ban, employers are prohibited from directly or indirectly asking applicants about their past salaries, whether in writing or verbally. It is important to note that companies are not allowed to decide whether or not to interview a candidate or what salary to offer a possible new job based on the applicant’s salary history information.
In addition, an employer has to be aware of local regulations that strengthen protections. Although mainly pertaining to New York wage and hour rules, the Wage Theft Protection Act (WTPA) reminds businesses to have their new employees sign a Notice of Pay Rate as part of the onboarding procedure.
Wage and Hour Laws in New York
Employers throughout the state of New York may have issues adhering to both federal and New York wage and hour laws. Under equal employment opportunity and paycheck laws, New York employers are responsible for managing payroll compliance including requirements for:
- The final paycheck;
- Overtime;
- Meals and rest breaks;
- Deductions; and
- Minimum wage.
Minimum Wage in New York
Employers in the State of New York face unique challenges because of the state’s minimum wage laws that vary depending on the location. As of December 31, 2021, the minimum wage rates in New York are as follows:
Location |
Minimum Wage as of 12/31/2022** |
Minimum Wage as of 01/01/2024** |
Tipped Service Employees as of 01/01/2024* |
Tipped Food Service Workers as of 01/01/2024* |
New York City |
$15.00 |
$16.00 |
$13.35 Cash Wage
$2.65 Tip Credit |
$10.65 Cash Wage
$5.35 Tip Credit |
Long Island & Westchester |
$15.00 |
$16.00 |
$13.35 Cash Wage
$2.65 Tip Credit |
$10.65 Cash Wage
$5.35 Tip Credit |
Remainder of New York State |
$14.20 |
$15.00 |
$12.50 Cash Wage
$2.50 Tip Credit |
$10.00 Cash Wage
$5.00 Top Credit |
*Only hospitality employers are allowed to take credit from minimum wage.
How Do Tip Credits Work?
In order to meet the minimum wage requirements, companies in New York can combine cash pay with credits or allowances for gratuities that the employee receives from clients. This concession is referred to as the tip credit.
Payroll Deductions in New York
Under payroll deduction regulations in New York, employers are only permitted to withhold compensation from an employee’s salary in the following circumstances:
- The deduction relates to recovering an overpayment that was made inadvertently by the employer;
- The employer is obtaining funds to pay back advances;
- The employee freely authorizes the deduction in writing.
Payroll deductions are only permitted for:
- Insurance costs;
- Health and welfare benefits or a pension;
- Contributions or dues to a labor union; or
- Discounted parking or passes that allow the employee to use public transportation.
There are numerous situations in which employers are not permitted to withhold an employee’s salary. There are, however, many common situations in which employers erroneously withhold pay, including, but not limited to:
- The acquisition of necessary tools, gear, and workwear;
- Repayment of any losses suffered by the employer due to the employee’s actions, such as those resulting from:
- Product spoilage and breakage;
- Cash shortages;
- Fines or penalties;
- Fines or sanctions for tardiness, misbehavior, or absences that are excessive or unannounced.
New York Overtime
An employer is typically required to pay a worker 1.5 times their regular pay rate for any overtime they work over the course of a week in accordance with the New York Overtime Law. If the compensation rate of an employee fluctuates, the average should be used as the standard pay rate.
There are some positions that may be excluded from the overtime requirements under certain conditions pursuant to the Fair Labor Standards Act (FLSA), the New York Minimum Wage Act, and other laws. These positions include genuine professional, administrative, and executive personnel.
An employer has to submit an application for a position duties test in order for a specific position to be considered exempt.
Do I Need an Attorney?
If you believe you have been terminated or treated in violation of New York’s labor laws, it is important to consult with a New York employment lawyer. A lawyer with knowledge about the laws and standards in New York will be able to advocate for your best interests and assist you with obtaining your desired outcome.
If you are an employer, your lawyer can assist you with adhering to the requirements and laws that apply to your business. In addition, your attorney can help you complete and file the required paperwork.