New York Labor Laws for Business Owners
Situated along the northeastern coast of the United States, New York emerges is an energetic and economically progressive state. From the influential Wall Street to the forefront of technological advancements, healthcare innovations, and fashion enterprises, New York presents a thriving ecosystem that caters to enterprises of every scale. The state has progressive labor laws that strive to protect the interests of workers.
Minimum Wage
$15 NY City, Long Island, Westchester. $14.2 elsewhere
Overtime Wage
$1.5x Regular Wages
Meal Breaks
Not mandated
Rest Breaks
Paid if 20 minutes or less
New York state has a tiered minimum wage system based on location and employer size. Employees are entitled to an hourly minimum wage rate according to New York Labor Laws and the Fair Labor Standards Act (FLSA).
In regions beyond the boundaries of New York City, Long Island County, and Westchester County, the prevailing minimum wage for the year 2023 in the state of New York stands at $14.20 per hour.
However, within New York City, Long Island County, and Westchester County, the minimum wage for 2023 is $15.00 per hour.
New York State’s minimum wage will rise progressively starting on January 1, 2024, and extending through 2026. In both 2025 and 2026, an additional increment of $0.50 shall be implemented to the New York State minimum wage.
Effective January 1, 2024, the New York State Minimum Wage for New York City, Long Island County, and Westchester County will rise to $16.00 per hour, while for the remaining parts of the state, it will be $15.00 per hour.
The state of New York has overtime regulations that align with federal standards set forth by the Fair Labor Standards Act (FLSA). An overview of the overtime rules in New York is provided below:
- Overtime Compensation: Non-exempt employees who exceed 40 hours of work in a workweek are generally entitled to receive overtime pay. The rate of overtime compensation must be no less than 1.5 times their regular rate of pay.
- Exemptions: Certain categories of employees may be exempted from the requirement of receiving overtime pay. These exemptions are typically determined by factors such as job duties, salary level, and other relevant criteria. Common exemptions include executive, administrative, and professional employees.
- Overtime for Residential Employees: Overtime rules also extend to domestic workers and residential employees. Domestic workers are entitled to overtime pay for any hours worked beyond 44 in a workweek, while residential employees must receive overtime pay for hours worked beyond 40 in a workweek.
- Calculation of Overtime for Tipped Employees: In the case of tipped employees, overtime pay is calculated based on the full minimum wage rate rather than the lower tipped minimum wage. The overtime rate for such employees should be 1.5 times the full minimum wage.
- Spread of Hours Compensation: Certain industries may necessitate additional compensation for employees whose workday spans over ten hours. This additional hour of pay, referred to as “spread of hours” pay, should be provided at the minimum wage rate.
- These regulations aim to ensure fair and just compensation for employees in New York state, promoting equitable employment practices and safeguarding workers’ rights.
New York state labor laws generally do not mandate meal or rest breaks for adult employees. However, there are some exceptions and specific regulations that employers should be aware of:
- Meal Breaks: New York state law does not require employers to provide meal breaks for adult employees. However, if an employer chooses to provide a meal break, it is not considered work time, and employees must be completely relieved of their duties during the break.
- Rest Breaks: Similar to meal breaks, New York state law does not mandate rest breaks for adult employees. Employers are not required to provide short breaks, and if breaks are provided, they are typically considered part of the workday.
- Breaks for Minors: Different rules apply to minor employees (those under 18 years of age). Employers must provide a 30-minute meal break to minor employees who work more than six consecutive hours. This meal break must begin between the third and fifth hour of work.
Additionally, employers must provide a 15-minute break for every four hours worked to minor employees.
While New York state labor laws do not require breaks for adults, employers must comply with federal regulations if they choose to provide breaks. If an employer provides breaks that last 20 minutes or less, federal law considers these breaks as compensable work time, and employees must be paid for the time.
New York state has implemented a range of legislation for paid leave and time off for employees, necessitating the need for employers to remain updated on evolving labor laws. Below, we outline several crucial components of New York’s regulations concerning paid leaves and time off:
- Paid Family Leave (PFL): New York presents an extensive Paid Family Leave program that furnishes eligible employees with paid, job-protected leave for qualifying events. These events encompass bonding with a newborn, tending to a family member with a severe health condition, or assisting loved ones during a family member’s deployment abroad.
- Paid Sick Leave: Employers are obligated to grant paid sick leave to employees, irrespective of the size of their organization. The precise amount of paid sick leave afforded to employees varies in accordance with the employer’s size and net income.
- Paid Time Off for COVID-19 Vaccination: New York has implemented provisions permitting employees to take paid time off to receive the COVID-19 vaccine. This initiative forms part of the state’s endeavor to encourage widespread vaccination.
- Time Off for Voting: New York mandates that employers provide employees with up to two hours of paid time off to cast their votes, should they lack sufficient time outside of working hours to do so.
- Jury Duty and Witness Leave: Employers in New York must allow employees to take time off for jury duty without fear of reprisal. Furthermore, employees serving as witnesses in court proceedings are entitled to leave.
- Military Leave: New York state law affords eligible employees who are military members with job-protected military leave.
Employers must familiarize themselves with the precise requirements of each leave program and ensure strict adherence to applicable laws. Moreover, employers are advised to regularly monitor labor law updates and seek legal counsel to ensure comprehensive awareness of the latest regulations.
The classification of employees as exempt or non-exempt in the state of New York is primarily governed by federal law, specifically the Fair Labor Standards Act (FLSA). The FLSA establishes the criteria for determining whether an employee is exempt from or non-exempt and entitled to overtime pay. Here are the key points related to exempt vs. non-exempt classification:
Exempt Employees:
- Salary Basis Test: Exempt employees are typically paid on a salary basis, meaning they receive a predetermined salary that is not subject to reduction based on the quality or quantity of work performed.
- Salary Level Test: Exempt employees must meet a minimum salary threshold to qualify for exemption. The minimum salary for exemption is $684 per week.
- Duties Test: Exempt employees must perform specific job duties that fall into one of the FLSA’s exempt categories, such as executive, administrative, professional, or certain computer-related duties.
Non-Exempt Employees:
- Hourly Pay: Non-exempt employees are typically paid on an hourly basis and are entitled to overtime pay for hours worked in excess of 40 hours in a workweek.
- Overtime Pay: Overtime pay for non-exempt employees is generally calculated at 1.5 times their regular rate of pay for each hour worked beyond 40 hours in a workweek.
In the state of New York, the equal pay provisions are primarily covered under both federal and state laws, including the federal Equal Pay Act and the New York State Equal Pay Act.
Federal Equal Pay Act: The federal Equal Pay Act (EPA) is part of the Fair Labor Standards Act (FLSA). It prohibits wage discrimination based on sex by requiring that men and women be paid the same for substantially equal work.
The work must be performed under similar working conditions and require equal skill, effort, and responsibility.
New York State Equal Pay Act: New York has its own equal pay law known as the New York State Equal Pay Act. This law goes beyond the requirements of the federal EPA and is designed to address and eliminate wage discrimination on the basis of gender.
The New York State Equal Pay Act prohibits employers from paying employees of one gender less than employees of another gender for equal work or substantially similar work, which includes similar skill, effort, responsibility, and working conditions.
The law provides that any pay differences must be based on a bona fide factor other than gender, such as education, training, or experience. However, the employer must show that the factor is job-related and consistent with business necessity.
The law also prohibits retaliation against employees who exercise their rights under the Equal Pay Act.
Both the federal and state laws aim to ensure pay equity between men and women, and employers in New York must comply with both sets of regulations. Employers should be aware of the specific provisions of the New York State Equal Pay Act and take steps to evaluate and address any potential wage disparities based on gender within their organizations.
In New York state, like most other jurisdictions, employment relationships are generally governed by the principle of employment-at-will. Here are some key rules and considerations for hiring and firing employees in New York:
Employment-at-Will: New York follows the employment-at-will doctrine, meaning that, absent an employment contract specifying a different arrangement, either the employer or the employee may terminate the employment relationship at any time and for any lawful reason, or for no reason at all.
Anti-Discrimination Laws: Employers must comply with federal and state anti-discrimination laws, including the New York State Human Rights Law and Title VII of the Civil Rights Act of 1964. It is illegal to discriminate against employees based on protected characteristics such as race, color, religion, sex, national origin, age, disability, or marital status.
Background Checks: Employers in New York are subject to restrictions when conducting background checks on potential employees. They must comply with the Fair Credit Reporting Act (FCRA) and New York state laws regulating the use of criminal background information.
Work Eligibility Verification: Employers must comply with federal immigration laws, including the completion of Form I-9 to verify the work eligibility of employees.
Notice Requirements: New York state law requires employers to provide employees with notice of the terms and conditions of their employment, including rate of pay, regular payday, and other information.
Final Paychecks: Employers are generally required to provide employees with their final paychecks in a timely manner upon termination.
WARN Act: The federal Worker Adjustment and Retraining Notification (WARN) Act may apply to employers with 100 or more employees, requiring them to provide advance notice of plant closings or mass layoffs.
Retaliation Protections: Employees are protected from retaliation for engaging in certain protected activities, such as reporting workplace violations or filing discrimination complaints.
Severance Agreements: Employers may choose to offer severance agreements to departing employees. These agreements may include terms such as severance pay and a release of claims.
Employers should stay informed about changes in employment laws and regulations and seek legal advice when necessary. Additionally, having clear and well-documented employment policies and procedures can help employers navigate the complexities of hiring and firing in compliance with the law.
