New York and New Jersey EOY Employment Law Reminders and Updates

If you have employees in New York:

 Minimum Wage and Overtime Update:

 Minimum Wage: Effective December 31, 2019, the minimum wage in New York State generally will be:

1. In New York City: $15.00 per hour;

2. In Nassau, Suffolk, and Westchester counties: $13.00 per hour;

3. In the remainder of New York State: $11.80 per hour.

Exemptions from Overtime: In order for an employee to be exempt (i.e. not entitled) from premium overtime pay (i.e. time and one half the employee’s regular rate for hours worked over 40 in a workweek), a number of requirements generally must be met. Among those requirements is that the employee is paid on a “salary basis,” and the salary must be at least a particular “floor.” Effective December 31, 2019, the “floor” in New York State, for employees subject to the “executive” and “administrative” exemptions from overtime, generally will rise as follows:

1. In New York City: $1,125 per week ($58,500 annually);

2. In Nassau, Suffolk, and Westchester Counties: $975 per week ($50,700 annually);

3. In the remainder of New York State: $885 per week ($46,020 annually).

Please recall that while New York State does not have a salary “floor” for employees subject to the “professional” exemption, there is a Federal threshold which, as of January 1, 2020, will be $684 per week ($35,568 annually).

New York Paid Family Leave: 

1. Effective January 1, 2020, eligible employees may continue to take up to 10 weeks of paid leave; the maximum benefit amount will increase to 60% of an employee’s average weekly wage rate, up to a maximum of $840.70 per week.

2. That increase will result in a higher payroll deduction.  (Recall that paid family leave is funded by employee contributions to a paid family leave rider that employers must have on their temporary disability insurance plans.)  We recommend that you confirm with your temporary disability insurer and payroll provider that all is in order.

New York State and City Human Rights Laws:

What follows are brief reminders of select items referenced in our prior update, with respect to expanded obligations under these laws.

1. January 6, 2020: New York State employers generally no longer may request a job applicant’s prior compensation history. Please note that a similar law has been and remains in effect in New York City.

2. January 11, 2020: The New York City Human Rights Law will extend to protect freelancers and independent contractors so that they can file claims of discrimination, harassment, and retaliation with the New York City Commission of Human Rights.

3. January 13, 2020: The New York City Human Rights Law generally applies to employers with 4 or more employees. For purposes of counting, as of this date employers must count, among others, independent contractors and freelance workers if they were engaged at any time during the 12 months prior to the date of an alleged violation of the law.

4. February 8, 2020: The New York State Human Rights Law will apply to all New York State employers, regardless of size (even including those with just one employee).

5. May 10, 2020: Pre-employment drug testing for marijuana, as a condition of employment, generally will be banned in New York City.

If you have employees in New Jersey:

Minimum Wage and Overtime Update: 

Minimum Wage: Effective January 1, 2020, the minimum wage in New Jersey generally will be:

1. Generally: $11.00 per hour; but

2. For employees of seasonal or small employers (i.e. employers with less than 6 employees): $10.30 per hour.

3. The current “Wage and Hour Abstract” poster, reflecting the above, is here: http://lwd.dol.state.nj.us/labor/lwdhome/content/employerpacketforms.html.

Exemptions from Overtime: In order for an employee to be exempt (i.e. not entitled) from premium overtime pay (i.e. time and one half the employee’s regular rate for hours worked over 40 in a workweek), a number of requirements generally must be met. Among those requirements is that the employee is paid on a salary basis, and the salary must be equal to or more than a particular “floor.” Effective January 1, 2020, the “floor” in New Jersey generally will rise in accordance with new Federal law, as follows:

1. For employees subject to the “administrative,” “executive,” and “professional” exemptions: $684 per week ($35,568 annually);

2. For employees subject to the highly compensated employee exemption, total annual compensation of $107,432.

New Jersey Family Leave Insurance: 

• As a reminder, beginning January 1, 2020, payroll deductions will increase for both New Jersey Family Leave and Temporary Disability Insurance benefits. We recommend that employers confirm with their applicable insurers and payroll providers that all is in order.

Prior Compensation History:

• Effective January 1, 2020, New Jersey employers generally may not request a job applicant’s prior compensation history.  Certain limited exceptions apply.

Yearly Reminders:

1. At this link http://lwd.dol.state.nj.us/labor/lwdhome/content/employerpacketforms.html you can find the “CEPA (Whistleblower)” notice. In addition to posting the notice as all New Jersey employers must, employers with 10 or more employees must distribute it to their employees annually. There is no particular requirement re: memorializing having done so, but we suggest that employers do so. The “Contact Information” section at the bottom of the notice must be completed.

2. Employers with 50 or more employees must, in addition to posting the “Gender Equity Notice” found at the same link and providing a copy at the time of hire, also must distribute the notice annually. The acknowledgment at the bottom must be signed, and the signed form must be returned to the employer within 30 days of an employee’s receipt of it.