Labor and Employment Alert April 8, 2010 Authors: New Responsibilities for New York Employers Laura A. Stutz laura.stutz@klgates.com +1.973.848.4145 George P. Barbatsuly george.barbatsuly@klgates.com +1.973.848.4101 K&L Gates includes lawyers practicing out of 36 offices located in North America, Europe, Asia and the Middle East, and represents numerous GLOBAL 500, FORTUNE 100, and FTSE 100 corporations, in addition to growth and middle market companies, entrepreneurs, capital market participants and public sector entities. For more information, visit www.klgates.com. Amendments to employment laws and regulations in New York State create new obligations for employers and expand protections for employees. New York Labor Law now imposes notice and recordkeeping requirements on employers regarding employees’ regular and overtime rates of pay. Revised emergency regulations issued by the New York Department of Labor (“Department”) under the state Worker Adjustment and Retraining Notification Act1 (“NY WARN”) also create new notice requirements, and victims of domestic violence are expressly protected from workplace discrimination under an amendment to the Human Rights Law. Notice and Acknowledgement of Rates of Pay Section 195 of the New York Labor Law requires written notice to employees at the time they are hired of their regular pay date and rate of pay. N.Y. Lab. L. § 195(1). The notice must also state the overtime rate of pay if the employee is eligible for overtime compensation. Employers must obtain written acknowledgement from employees of receipt of the notification. The amendment applies to all employees hired on or after October 26, 2009 – the effective date of the amendment. The Department issued guidelines, instructions and model notices for employers to consider, which can be found at http://www.labor.ny.gov/formsdocs/wp/ellsformsandpublications.shtm. Employers are not required to use the Department’s model notices and may use their own notice, provided it conveys the necessary information to the employee. Revised Emergency Regulations under NY WARN Effective February 12, 2010, the Department adopted revised emergency regulations related to the NY WARN. 12 NYCRR Part 921. The revised emergency regulations, which replace the January 2009 emergency rules, further detail the NY WARN’s terms, notice requirements and enforcement procedures. The revised emergency regulations clarify the definitions of “affected employee,” “consolidation of all or part of a business,” “employer,” “employment loss,” “hours of work,” “mass layoff,” “relocation,” and “single site of employment.” They also define a number of terms, including “date of layoff” (i.e., the last day an employee is eligible or permitted to work for the employer regardless of whether or not the employer continues to pay or provide benefits to the employee after the date of layoff). The revisions also modify the content and method of service of the required notice and permit the Department to consider an employer’s good faith cooperation and truthfulness when determining liability for a violation of NY WARN. All other employer obligations, including the obligation to comply with the federal WARN Act, are expressly preserved under the new emergency regulations. 1 N.Y. Lab. L. §§ 860-a to -i. The provisions of the NY WARN, which took effect on February 1, 2009, were outlined in an October 2008 client alert titled, “Downsizing in New York or New Jersey? Remember to WARN Your Workforce.” Labor and Employment Alert Protected Status of Domestic Violence Victims Effective July 7, 2009, the New York Human Rights Law was amended to provide protection from employment discrimination for victims of domestic violence. N.Y. Exec. Law § 296.1(a). Employers are prohibited from considering an individual’s status as a victim of domestic violence when making employment decisions such as hiring, advancement, compensation or other terms of employment. A “domestic violence victim” is defined as an individual “who is a victim of an act which would constitute a family offense” under section 812 of the New York Family Court Act. N.Y. Exec. Law § 292(34). “Family offense” covers a multitude of crimes, including disorderly conduct, harassment, stalking and assault. N.Y. Fam. Ct. Act § 812(1). Employers who are found guilty of discriminating against an employee based on a protected status subject themselves to substantial liability and penalties. Conclusion New York employers should evaluate their new hire documentation, anti-discrimination policies and, if considering downsizing, the terms, notice requirements and enforcement procedures of the NY WARN Act to ensure compliance with the recent legislative and administrative amendments and reduce the risk of claims by employees. Anchorage Austin Beijing Berlin Boston Charlotte Chicago Dallas Dubai Fort Worth Frankfurt Harrisburg Hong Kong London Los Angeles Miami Moscow Newark New York Orange County Palo Alto Paris Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco Seattle Shanghai Singapore Spokane/Coeur d’Alene Taipei Tokyo Warsaw Washington, D.C. K&L Gates includes lawyers practicing out of 36 offices located in North America, Europe, Asia and the Middle East, and represents numerous GLOBAL 500, FORTUNE 100, and FTSE 100 corporations, in addition to growth and middle market companies, entrepreneurs, capital market participants and public sector entities. For more information, visit www.klgates.com. 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A list of the partners or members in each entity is available for inspection at any K&L Gates office. This publication is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. ©2010 K&L Gates LLP. All Rights Reserved. April 8, 2010 2