2024 Highlights
We hope this finds you well, with a happy and successful new year ahead. In a continuing unwelcome trend, 2024 brought a host of new laws requiring employers to modify existing practices and documents, some of which go into effect in this new year. We are providing our clients and friends with this brief recounting of certain updates, arranged by geographic location. Here we go:
New York:
Effective January 1, 2025, the minimum wage in New York City, Long Island, and Westchester generally is $16.50 /hour. In the rest of the State, the minimum wage is $15.50 /hour.
Also effective January 1, 2025, the salary threshold for exempt employees is $1,237.50 /week ($64,350 /year) in New York City, Long Island, and Westchester. In the rest of the State, the threshold is $1,161.65 /week ($60,405.80 /year). However, employers should recall that if they do not want to obtain permission to pay via direct deposit, or do wish to pay less frequently than semi-monthly, the threshold is $1,300 /week ($67,600 /year) regardless of location.
New York State law now provides for paid lactation breaks, and requires annual distribution of a far more involved policy than previously was required. Please see here for further information.
New York State enacted its own Freelance Isn’t Free Act, which requires certain written contract terms when engaging an individual independent contractor (whether personally or through the individual’s one-person entity). The law generally is similar to New York City’s identically named law that has been in effect since 2017. Employers outside of the five boroughs now must take note.
New York State enacted the Clean Slate Act, which among other things requires that an employer that receives criminal history information in the course of a background check provide a copy of the report containing the information to the applicant, along with a notice of the applicant’s right to seek correction of any incorrect information. Crucially, that requirement applies even when the employer does not take any adverse action against the applicant. Please note that there are additional requirements regarding background checks that pre-existed the Clean Slate Act, in New York State generally and even more so in New York City.
New York State enacted a law providing for paid prenatal leave, effective as of January 1, 2025. Generally the law permits an employee, within a rolling period of one year, to take up to 20 hours of paid leave for prenatal, pregnancy-related health care appointments. Although the law does not appear to require a written policy, we recommend having one.
New York State has not taken action to extend the COVID-19 Emergency Leave Law, the result being that as of July 31, 2025, an employee subject to a mandatory or precautionary order of quarantine or isolation due to COVID-19 no longer will be eligible for particular paid leave. Employees of course will still have access to paid leave (or, for very small employers, unpaid leave) under the State’s and City’s paid sick leave laws.
New York City released its Workers’ Bill of Rights poster, found here. The poster must be both displayed in the workplace and distributed to new hires (and any other employee who has not yet received a copy). It should also be provided to individual independent contractors. The poster essentially is just a QR code that, if scanned, will bring the employee here, for reference.
New Jersey:
Effective January 1, 2025, the minimum wage generally is $15.49 /hour, and $14.53 /hour for employers with less than 6 employees.
The salary threshold for exempt employees, which in New Jersey tracks the Federal standard, remains $684 /week ($35,568 /year). The Federal rule that in July 2024 raised the threshold to $844 /week (and in this January 2025 would have raised it further) has been blocked nationwide by a Texas court.
New Jersey joined the expanding list of states with a pay transparency law. The New Jersey law will go into effect on June 1, 2025, generally will apply to employers with 10 or more employees, and will require certain information regarding compensation and benefits to be included in job advertisements, including certain internal postings. The law will not require that any particular position be advertised; rather, it will apply when a position is advertised.
As a reminder, New Jersey requires covered employers to annually distribute its posters regarding the Law Against Discrimination and Family Leave Act (in the case of the latter, employers with at least 30 employees worldwide), as well as its notice regarding the Conscientious Employee Protection Act (CEPA) (employers with 10 or more employees) and its Gender Equity Notice (employers with 50 or more employees). All the preceding can be found here.
New Jersey employers with 25 or more employees, who do not offer their own qualified retirement savings plan and who have not yet registered for the Secure Choice Savings Program, should do so as soon as possible, as the deadlines have passed. Information is available here.
Federal (applicable in all jurisdictions):
The Consumer Financial Protection Bureau released an updated version of its form entitled A Summary of Your Rights Under the Fair Credit Reporting Act. The form must be provided to any candidate or employee before the employer takes an adverse action based on the results of a third party background check.
The Equal Employment Opportunity Commission (EEOC) issued its final regulations implementing the Pregnant Workers Fairness Act, which applies to employers with 15 or more employees. The bottom line that a covered employer needs to know is that the law substantially increases the right of a pregnant employee to seek accommodations, well beyond what previously might have been available under the Americans with Disabilities Act.
This bulletin provides general guidance and is not legal advice. It is not a substitute for legal counsel with respect to any particular matter.
