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New Year, New Laws in New York

Jan 30, 2024

New Year, New Laws in New York


As New York and New York City ring in a new year, they also ring in a slate of new laws that take effect in 2024. First, in New York State, the Clean Slate Act takes effect as of November 16, 2024, which requires records of certain past criminal convictions to be sealed. Second, effective January 1, 2024, is the New York State Department of Labor (“NYSDOL”)’s increased salary thresholds, which offer employees additional overtime, minimum wage and wage payment protections. Third, New York’s pay transparency law, effective September 17, 2023, requires disclosure of maximum and minimum salary for in advertisements for jobs.


For New York City, the worker’s bill of rights has new notice and positing requirements that are effective March 1, 2024. Second, effective March 20, 2024, employees gain a private right of action in court for violations of New York City’s Earned Safe and Sick Time Act. These laws are described in detail below.

 

Clean Slate Act Effective November 16, 2024

 

On November 16, 2023, New York Governor Kathy Hochul (“Hochul”) signed into law A1029C, also known as the “Clean Slate Act.” The law, becoming effective November 16th of this year, will require records of certain past criminal convictions to be sealed. Eligible misdemeanors convictions will be sealed for at least three years following release from incarceration, or in the case of no incarceration, from the imposition of a sentence for the misdemeanor. Eligible felony convictions will be sealed for at least eight years following an individual’s incarceration or imposition of a sentence. Consistent with the Fair Credit Reporting Act (“FCRA”), the Clean Slate Act will require employers to provide individuals for whom background checks are conducted with 1) a copy of the individual's criminal history report, 2) a copy of Article 23-A of the New York Correction Law, and 3) notice of the right to seek correction of any erroneous information contained in the record. In contrast to the FCRA, the Clean Slate Act requires employers to provide these materials regardless of whether the employer intends to take adverse action based on criminal history. Sealed criminal convictions will generally not be accessible in a background check except where relevant and necessary (i.e. if the check is conducted when hiring individuals to work with vulnerable populations). Sealed records not provided in response to an employer’s request for criminal history may not be introduced as evidence of negligence in hiring and employers acting reasonably and in good faith may not have a duty to investigate whether convictions have been sealed under law.

 

NYSDOL Salary Threshold Effective January 1, 2024

 

On December 27, 2023, the NYSDOL adopted proposed regulations to increase the salary threshold for minimum wage and overtime exemptions under the New York Labor Law (“NYLL”). Effective January 1, 2024, the new salary thresholds for the executive and administrative exemptions for overtime are $1,200 per week for New York City, Westchester and Long Island and 1,124.20 per week for the rest of the state. New York does not have a professional exemption to overtime, so individuals covered by this exemption will continue to be subject to the professional exemption under the Fair Labor Standards Act (“FLSA”).


Further, on September 15, 2023, Hochul signed into law S5572/A6796, amending the NYLL to increase the threshold for exemption from wage payment protections, including the method and frequency of wage payments. Effective March 13, 2024, the earning requirements for protection under the NYLL will increase to $1,300 per week, up from the current threshold of $900 per week, making more employees subject to wage payment protections under the NYLL.

 

Pay Transparency Regulations set to Publish this Year.

 

Effective September 17, 2023, employers with four or more employees became required to disclose the maximum and minimum annual salary or hourly wage ranges in advertisements for jobs, promotions and transfers(including electronic job postings). The requirements apply to jobs physically performed in the state or by out-of-state workers who report to a supervisor or office within New York state. However, NYSDOL has not issued final rules for these pay transparency regulations, and employers should be on the lookout for these rules this year.

 

New York City Workers’ Bill of Rights Imposes New Notice and Posting Requirements.

 

As of November 2023, the New York City Council passed Int. No. 569-B, amending the Administrative Code of the City of New York to require employers to distribute and post a Workers’ Bill of Rights notice in the workplace. The Bill of Rights will be published by March 1, 2024 which will 1) provide information about rights under relevant federal, state and local law that apply to employees, prospective employees or independent contractors, 2) indicate which rights apply to workers regardless of immigration status and 3) include information about the right to organize a union. By July 1, 2024, employers will be required to provide this Bill of Rights to their employees, conspicuously post the Bill and make it available to all employees online and in any language that is spoken by at least 5% of their employees.

 

New York City Employees to Gain Private Right of Action for Violations of NYC’s Earned Safe and Sick Time Act.

 

On January 20, 2024, New York City enacted Int. 563-A, which provides individuals with a right to file a civil action in court for violations of New York City’s Earned Safe and Sick Time Act (“ESSTA”). Currently, individuals asserting such an action can only file with the New York City Department of Consumer and Worker Protection. Effective March 20, 2024, individuals will have two years from the date they knew or should have know of the alleged violation of the ESSTA to commence a civil action in court. The ESSTA requires employes to provide leave to employees working in New York City for the care and treatment of themselves or a family member and to seek legal and social services assistance or take other safety measures if the employee or family member may be the victim of any act or threat of domestic violence or unwanted sexual contact, stalking or human trafficking.  

 

If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

Non-Compete Agreements Are in Jeopardy

26 Apr, 2024
On April 23, 2024, the Federal Trade Commission (“FTC”) issued a final rule banning non-competition agreements for all employees except for very narrow exceptions. The FTC’s Final Rule banning all non-competition agreements is effective 120 days after its publication in the Federal Register, which is expected in the next few days.  As of the effective date, all non-competition agreements are banned, except for franchisor/franchisee relationships and for sales of a business between buyer and seller. The FTC’s Rule is retroactive, prohibiting certain non-competition agreements before the effective date of the Rule as well. Existing non-competition agreements can remain in effect as to senior executives, which are defined in the Rule as employees in “policy-making positions” making at least $151,164 annually. The FTC’s Final Rule is already being challenged through the court system and a challenge from the Chamber of Commerce will most likely follow suit. Therefore, if an employer has existing non-competition agreements, the employer may not need to rescind them just yet. Stay tuned for updates as these challenges take their due course.

ALERT: US Department of Labor Increases Salary Threshold for White Collar Overtime and Minimum Wage Exemptions

26 Apr, 2024
By: Trevor Brice, Esq. On April 23, 2024, the U.S. Department of Labor (“DOL”) announced a Final Rule updating regulations governing Executive, Administrative and Professional exemptions (“EAP exemptions”) from the minimum wage and overtime rules. This Final Rule significantly increases the salary threshold for workers to qualify for EAP exemptions. In general, to qualify for EAP exemptions, an employee must 1) be paid on a salary basis, 2) at a threshold level, and 3) primarily perform EAP duties as defined by the DOL. The Final Rule does not impose any changes on the salary basis or job duties relevant in determining EAP exemptions. After issuance of a proposed rule that received approximately 33,000 comments, the DOL in the Final Rule is increasing the salary thresholds in waves. As of July 1, 2024, the salary threshold for EAP exemptions applies to employees making $844 per week ($43,888 annually) on a salary basis. As of January 1, 2025, the threshold increases to $1,128 per week ($58,656 annually). This means that employees making under these amounts on a salary basis as of these dates are no longer exempt from overtime, as long as the other criteria for determining EAP exemptions by the DOL are met. Additionally, the rule increases the salary threshold for the “highly compensated” employee exemption. This exemption applies when an employee meets the greater salary threshold, their primary duty includes performing office or non-manual work and the employee customarily and regularly performs at least one of the duties or responsibilities defined in the EAP exemptions. The DOL also issued the increased salary threshold for the highly compensated exemption in waves. As of July 1, 2024, the salary threshold for the highly compensated employee exemption applies to employees making $132,964 annually, including at least $844 per week paid on a salary or fee basis. As of January 1, 2025, the salary threshold for the highly compensated employee exemption raises to $151, 164 annually, including at least $1,128 per week on a salary or fee basis. The DOL estimates that under the Final Rule, there will be four million workers newly entitled to overtime protection as of 2025. As with the FTC’s Final Rule passed on the same day, the DOL’s Final Rule will most likely be subject to challenge through the court system. However, for employers concerned with this new rule, it would be prudent to identify those positions below or close to the new salary thresholds, consider whether to change salaries given the new thresholds and conduct training as to who will now be exempt under the DOL’s final rule. If there is any gray area as to the DOL’s final rule, reach out to the local employment and labor counsel to determine if there is potential liability. Trevor Brice is an attorney who specializes in labor and employment-law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.
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