New York and New Jersey EOY Employment Law Reminders and Updates
As this difficult year comes to a close, employment laws in New York and New Jersey are continuing to expand and change. We are providing select EOY reminders and updates, as follows:
If you have employees in New York:
Minimum Wage and Overtime Update:
Minimum Wage: Effective December 31, 2020, the minimum wage in New York State generally will be:
In New York City: $15.00 per hour;
In Nassau, Suffolk, and Westchester counties: $14.00 per hour;
In the remainder of New York State: $12.50 per hour.
Exemptions from Overtime: In order for an employee to be exempt from (i.e., not entitled to) overtime pay (i.e., time and one half the employee’s regular rate for hours worked over 40 in a workweek), several requirements generally must be met. One of 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, 2020, the “floor” in New York State, for employees subject to the “executive” and “administrative” exemptions from overtime, generally will be:
In New York City: $1,125 per week ($58,500 annually);
In Nassau, Suffolk, and Westchester Counties: $1,050 per week ($54,600 annually);
In the remainder of New York State: $937.50 per week ($48,750 annually).
Please recall that while New York does not have a salary “floor” for employees subject to the “professional” exemption, there is a Federal threshold that generally applies. It remains $684 per week ($35,568 annually).
New York Paid Family Leave:
Effective January 1, 2021, eligible employees may take up to 12 weeks of job-protected leave; the maximum benefit amount will increase to 67% of an employee’s average weekly wage rate, up to a maximum of $971.61 per week.
The increased maximum benefit amount 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 employers confirm with their insurers and payroll providers that all is in order.
New York’s model “Employee Notice of Paid Family Leave Payroll Deduction,” and “Statement of Rights for Paid Family Leave,” are available at the Employer Resources tab here: https://paidfamilyleave.ny.gov/2021.
New York COVID Leave:
As things stand, the Federal Families First Coronavirus Response Act (FFCRA) will expire as planned on December 31, 2020. Through March 31, 2021, employees still voluntarily may offer certain leave under the law and claim the related tax credit, but doing so no longer will be mandatory. However, New York’s own COVID-19 Paid Sick Leave law will remain in effect, and employees also may have recourse to New York Paid Family Leave and statutory disability benefits for this purpose, among other rights under Federal, State, and local law (including paid sick leave under NYS/NYC law). General information can be found here: New Paid Leave for COVID-19 | Paid Family Leave (ny.gov); and summarized more briefly here: COVID-19 Paid Sick Leave - Information for Employers (ny.gov).
Paid Safe and Sick Leave:
The particulars are well beyond the scope of this email, but please be reminded that New York State’s new Paid Sick Leave Law, and New York City’s amendments to its pre-existing Earned Safe and Sick Time Act (ESSTA), have significantly changed the rules for 2021.
If you have employees in New Jersey:
Minimum Wage and Overtime Update: Effective January 1, 2021, the minimum wage in New Jersey generally will be $12.00 per hour.
But, for employees of seasonal or small employers (i.e. employers with less than 6 employees): $11.10 per hour.
The current “Wage and Hour Abstract” poster, reflecting the above, is here: http://lwd.dol.state.nj.us/labor/lwdhome/content/employerpacketforms.html.
With respect to overtime, in order for an employee to be exempt from (i.e., not entitled to) overtime pay (i.e., time and one half the employee’s regular rate for hours worked over 40 in a workweek), several requirements generally must be met. One of those requirements is that the employee is paid on a “salary basis,” and the salary must be at least a particular “floor.” New Jersey continues to follows the Federal overtime rules; as such, the “floor” generally remains $684 per week ($35,568 annually).
New Jersey COVID Leave:
As things stand, the Federal Families First Coronavirus Response Act (FFCRA) will expire as planned on December 31, 2020. Through March 31, 2021, employees still voluntarily may offer certain leave under the law and claim the related tax credit, but doing so no longer will be mandatory. However, employees still also may have recourse to New Jersey Family Leave Insurance and to statutory disability benefits for this purpose, among other rights under Federal, State, and local law (including the New Jersey Earned Sick Leave Law). The New Jersey Department of Labor & Workforce Development released a helpful one-sheet guide for employers considering COVID-related leave scenarios, here: https://www.nj.gov/labor/assets/PDFs/COVID-19%20SCENARIOS.pdf. Please just note that the document is outdated in that it continues to include the FFCRA. Our hope is that a 2021 version will be released soon.
Insurance Contribution Rates:
As a reminder, beginning January 1, 2021, payroll deductions will increase for both Family Leave Insurance (paid for by employee contributions) and Temporary Disability Insurance (paid for by employer and employee contributions). We recommend that employers confirm with their insurers and payroll providers that all is in order.
Yearly Reminders:
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.
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
