Introduction to employment laws in New York
Overview
New York follows a robust set of laws for worker protection, wage standards, and more. Understanding and complying with these employment laws is crucial for businesses operating in the state.
Non-compliance can lead to penalties or lawsuits, damaging a company’s reputation and bottom line. In this guide, we’ll help you to stay compliant while hiring and manage employees in the Empire State.
Employing in New York: Key employment laws and practices
Standard work hours
In New York, a typical full-time workweek is 40 hours long or eight hours per day. Companies employing full-time professionals have to ensure this standard is maintained while respecting the provisions related to overtime outlined under the Fair Labor Standards Act (FLSA).
The terms of employment, including work hours, are generally outlined in the contract for contract workers. It’s important that these contracts comply with local and federal laws, including overtime pay stipulations.
For self-employed professionals, work hours can vary significantly. However, if they’re contracted by a company for a specific project or period, the contract should clearly state the expected hours of work and remuneration.
Minimum wage and overtime
New York has set its minimum wage at $15 per hour. In New York City, Long Island and Westchester Counties, notably, the minimum is $1 higher: $16 per hour.
Employees working beyond 40 hours a week are entitled to overtime pay. As per the FLSA provisions, which is set at one and a half times the normal hourly wage. There could be exceptions for certain professions and industries, and employers should consult relevant state laws for specifics.
Insurance and benefits
New York state law mandates that employers provide certain benefits to their employees. These typically include unemployment insurance, workers’ compensation insurance, disability insurance, and contributions to Social Security and Medicare. Some employers also offer health, dental, and vision insurance as well as retirement benefits like 401k plans.
The exact contributions to these benefits can vary based on various factors such as the employee’s salary, job classification, and location. Employers must understand their obligations to avoid non-compliance penalties.
Benefit | Employer contribution |
Unemployment insurance (State) | 2.1% – 9.9% |
Workers’ compensation insurance | varies |
FICA Social Security (Federal) | 6.20% |
FICA Medicare (Federal) | 1.45% |
FUTA (Federal Unemployment Tax Act) | 0.60% – 6.00% |
Meal and rest periods
In New York, state labor law requires breaks and meal periods based on the length of the employee’s shift. If an employee’s work shift spans more than six hours and extends over the noon-day meal period (11 a.m. to 2 p.m.), they are entitled to at least a 30-minute break. Similarly, if the shift starts before 11 a.m. and continues past 7 p.m., the worker must receive an additional 20-minute meal break between 5 p.m. and 7 p.m.
For factory workers, a one-hour lunch break is required. For non-factory workers, if a shift starts before 7 a.m. and finishes between 11 a.m. and 2 p.m., a meal break of at least 45 minutes should be provided.
Multiplier makes it easy to manage benefits for New York employees.
Anti-discrimination laws
New York employment laws uphold a firm stance against workplace discrimination. The New York State Human Rights Law (NYSHRL) prohibits discrimination on grounds including age, race, creed, color, national origin, sexual orientation, military status, sex, disability, predisposing genetic characteristics, familial status, marital status, or domestic violence victim status.
Additionally, the NYSHRL outlaws discrimination based on prior arrest or conviction record and prior substance abuse recovery.
In New York City, specifically, the NYC Human Rights Law provides even more comprehensive protection for employees. This includes protection against discrimination based on unemployment status, caregiver status, consumer credit history, sexual and reproductive health decisions, and immigration status, among others.
It’s also noteworthy that state law covers employers with four or more employees for most types of discrimination claims, which is a wider scope than federal laws. In New York, it is illegal to retaliate against an individual for opposing employment practices that discriminate or for filing a discrimination claim.
Leave policies
Leave policies in New York are quite comprehensive and cater to different employee needs. There are no state laws governing vacation leave; however, employers often provide paid or unpaid vacation leave as part of their employee benefits packages.
Under the Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid leave per year for specific family and medical reasons. The New York Paid Family Leave Law further extends this by offering eligible employees up to 12 weeks of paid leave for reasons such as bonding with a new child or caring for a family member with serious health conditions.
As for jury duty, New York law requires that employers not penalize an employee who needs to serve on a jury. At the same time, employers are not obligated to pay their wages during this period unless specified in an employment contract or collective bargaining agreement.
Should an employee need military leave, the Uniformed Services Employment and Reemployment Rights Act (USERRA) and New York state law both protect their job status and benefits.
Leave type | Paid/Unpaid | Duration |
Vacation leave | Varies | Varies |
Sick leave | Paid | Employees receive one hour of sick leave for every 30 hours worked |
FMLA leave | Unpaid | 12 weeks |
NY paid family leave | Paid | 12 weeks |
Bereavement leave | Varies | Varies |
Jury duty | Unpaid | As needed |
Voting leave | Paid | 2 hours, with caveats |
Organ and bone marrow donation | Paid | up to 7 days |
Witness and crime victim leave | Unpaid | Varies |
Emergency response leave | Unpaid | As needed |
Military leave | Unpaid | As needed |
Termination laws
In New York, as in most U.S. states, employment is deemed “at-will,” meaning either the employer or the employee can terminate the employment relationship at any time, for any reason that is not illegal or discriminatory, without providing notice. However, many employers choose to give a two-week notice as a professional courtesy.
Mass dismissals are governed by the federal Worker Adjustment and Retraining Notification Act (WARN Act), which mandates that employers must give 60 days’ notice to affected employees in case of large-scale layoffs or plant closures.
If an employer decides to provide severance pay, it usually correlates with the length of service, often amounting to one week’s pay for each year of service. This is not a requirement under New York law unless it is stipulated in an employment contract or company policy.
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Safety and health
In New York, employers are required to adhere to federal Occupational Safety and Health Administration (OSHA) regulations. These rules mandate that workplaces be free of known health and safety hazards. Employers must provide training about hazards, supply appropriate safety equipment, and meet specific industry safety standards.
In addition to federal OSHA rules, New York has specific regulations for certain industries such as construction and farming. For instance, the New York State Industrial Code Rule 23 specifies safety requirements for construction, demolition, and excavation operations.
Employers are also required to keep records of workplace injuries and illnesses and must report any serious incidents to OSHA. Under the New York Workers’ Compensation Law, employers must provide workers’ compensation insurance for their employees, which covers costs related to workplace injuries or illnesses.
Taxes in New York
In New York, both employers and employees are required to contribute to Federal Insurance Contributions Act taxes (FICA), which include Social Security and Medicare taxes. Additionally, employers contribute to the state’s Unemployment Insurance fund. For 2022, the employer contribution rates for unemployment insurance range from 2.1% to 9.9% applied on salary up to $12,500 annually.
For single filers, the tax rate ranges from 4% on incomes up to $8,500 to a maximum of 10.90% on incomes over $25,000,000. Married taxpayers filing jointly have slightly different brackets and rates. In addition to state income tax, New York City imposes its own income tax ranging from 3.078% to 3.876%.
Federal income tax is also applied according to different brackets. For single filers in 2022, the rates range from 10% on incomes up to $11,600 to a maximum of 37% on incomes over $609,350.
Tax type | Applicable to | Tax rate |
State unemployment insurance | Employer | 2.025% – 9.825% |
FICA Social Security | Employer & Employee | 6.20% |
FICA Medicare | Employer & Employee | 1.45% |
FUTA (Federal Unemployment Tax Act) | Employer | 0.60% – 6.00% |
State disability insurance | Employee | 0.50% |
State income tax | Employee | Varies based on income |
Federal income tax | Employee | Varies based on income |
Managing New York employees with an Employer of Record (EOR)
Employing individuals in New York means following numerous employment laws and HR compliance aspects, each with its unique demands.
Given these complexities, partnering with a knowledgeable provider like Multiplier can be hugely beneficial.
As a leading Employer of Record solution provider, Multiplier enables businesses to hire full-time employees in New York without the need to set up a local U.S. entity.
Multiplier’s Global Payroll lets you process payroll for all your employees, local and international, on time while managing local taxes, contributions, and withholdings.
FAQs
The minimum wage for private sector employees in New York state is currently $15 per hour. However, a higher rate of $16 applies for employees in New York City and the counties of Nassau, Suffolk, and Westchester. This increases the employer’s responsibility to ensure that all workers are paid at least the mandated minimum wage.
New York state law requires employers to pay their employees at least twice monthly. For some manual occupations, weekly payment is required.
Employer payroll contributions in New York include unemployment insurance, FICA Social Security, FICA Medicare, and FUTA. These contributions vary from 2.025% to 9.825% for unemployment insurance, 6.20% for FICA Social Security, 1.45% for FICA Medicare, and 0.60% to 6.00% for FUTA.
Except in instances of mass dismissals or as stipulated in an employment contract or collective bargaining agreement, employment relationships in New York can be terminated “at will.” This means that either the employer or the employee can end the employment without giving any notice or reason, provided that it is not illegal or discriminatory.
