New Employment Laws in New York: What HR Pros Need to Know

Boasting a workforce of 9.7 million, New York state is a leader in finance, trade, and entertainment. New York is also quick to chart the way for new employment policies, initiating and quickly adopting legislation that affects its workforce.

As an HR professional, you lead your organization in complying with these rapidly changing standards. Not only do you want to avoid tricky legal complications, but you also want your employees to receive the benefits they deserve. Adhering to labor laws shows your organization's dedication to supporting its employees while demonstrating your commitment to ethical practices within the business community.

It can be difficult to stay updated on employment laws in New York, so we did the digging for you. Read along to learn the 2024 status of pay transparency, minimum wage, paid family leave, child labor laws, the Freelance Isn’t Free Act, and New York City’s new business website.

As the leading HR software company, BambooHR is here to help you with compliance management. From payroll and benefits administration to licensing requirements, you can manage your compliance from one easy interface. Click here for a free demo.

New York Labor Statistics

• Labor force: 9.7 million
• 4.6% unemployment rate (US rate 4%)
• GDP: Over $1.7 trillion
• Top industries:
  • Education and health services
  • Government
  • Trade, transportation, and utilities
  • Professional and business services
• New York City is the richest city in the world.

Pay Transparency

In September 2023, pay transparency legislation officially rolled out in the state of New York. This new employment law requires employers to disclose compensation in all job advertisements and upon employee request.

Businesses with four or more employees must disclose pay information in all written job advertisements in any medium. The most accurate range of compensation must be disclosed. This legislation also applies to internal transfers and promotions.

The Pay Transparency Act applies to anyone who reports to a supervisor or worksite in New York, including the nearly half a million workers who commute from New Jersey into New York City.

Gov. Kathy Hochul stated, “This historic measure will usher in a new era of fairness and transparency for New York's workforce and will be a critical tool in our efforts to end pervasive pay gaps for women and people of color."

Pay transparency policies have been growing in popularity as part of a nationwide effort to maximize equality in the workplace. New York is a relatively early adopter to the pay transparency movement—a steady stream of states have followed suit.

Minimum Wage

On January 1, 2024, New York bumped up its minimum wage by almost a dollar to $15 and to $16 in New York City, Long Island, and Westchester.

This change is part of an initiative to reach a $16 minimum wage in the state and a $17 minimum wage in New York City, Long Island, and Westchester.

Though the pay change has elicited a variety of responses from employers and workers, the state considers this advancement a mark of its dedication to supporting individuals in a progressively inflationary economy.

"This is a win for workers and for businesses,” Gov. Hochul said. “Indexing the minimum wage to inflation will help hundreds of thousands of New Yorkers maintain their purchasing power, contribute to the state economy, and support our small business community.”

Paid Family Leave

New York’s Paid Family Leave policy is one of the most generous in the nation, allowing eligible workers to take up to 12 weeks of paid, job-protected leave. Reasons for leave include:

• Bonding with a new child
• Caring for a sick family member
• Assisting family when a family member is deployed for active duty

Employees are paid 67% of their wages while on leave, up to a cap of $1,151.16 per week. This cap is based on the New York State Average Weekly Wage (NYSAWW) of $1,718.15, which was updated in 2024.

Private employers are required to obtain paid family leave insurance, which is funded through a 0.373% deduction from each employee’s paycheck. An employer can choose to cover the cost if they’d like.

Child Labor

The US has seen an increase in violations of child labor laws and is cracking down on enforcement. Now is an important time to check the practices at your business to ensure you’re compliant with all regulations.

Check out the 2024 status of child labor laws in New York:

Working papers

• Minors aged 14–17 are required to have working papers, a certificate allowing them to work.
• Minors aged 14–15 are prohibited to work in factories.
• Minors aged 16–17 can work in factories but can’t work around certain machines.
• Working papers can be obtained at any local high school.

Hours

• Minors who are 14–15 and in school are prohibited from working more than:
  • 3 hours on a school day
  • 8 hours on a non-school day
  • 18 hours per week
  • 6 per week
• Minors who are 16–17 and in school are prohibited from working more than:
  • 4 hours Monday through Thursday
  • 8 hours on a weekend or holiday
  • 28 hours per week
  • 6 days per week

Prohibited activities

• Minors under the age of 18 are prohibited from working in:
  • Construction
  • Meat packing
  • Operating saws
  • Operating mills
  • Manufacturing explosives
  • Mining

For a more comprehensive list of hour requirements and prohibited work activities for minors in New York, check out NY’s DOL guide.

The Freelance Isn’t Free Act

As part of New York’s efforts to support its workforce, the statewide Freelance Isn’t Free Act (FIFA) will officially be in effect August 2024.

The following components are rights and requirements for freelance work, as outlined in FIFA:

• Contract: Any job worth $800 or more must have a written contract in which it details the work being performed, the compensation, and the date of payment. Both parties must have a copy of the contract.
• Payment: The freelancer must be paid for their work, and payment must be made on the date indicated in the contract.
• Right to file a complaint: Freelancers have the right to file a complaint with the Office of Labor Policy & Standards within the Department of Consumer and Worker Protection if procedures aren’t followed correctly. The freelancer also has the right to sue.
• Protection against retaliation: Hiring parties aren’t allowed to fire or penalize a freelancer for exercising their rights.

New York City has had its own FIFA since 2016, and now those rights will extend to freelancers across the state.

The implementation of this act is timely, considering the rising popularity of freelance work. In fact, 38% of the US workforce did freelance work in 2023, and this percentage is likely to grow. So far, Illinois, Seattle, WA, Minneapolis, MN, Los Angeles, CA, and Columbus, OH have also implemented similar acts.

For context, freelancers are self-employed workers who are contracted by other individuals or organizations to perform work. Common types of freelance work include:

• Videography
• Photography
• Marketing
• Social media
• Writing
• Graphic design
• Programming
• Home repair

If you’re an HR professional working with freelancers, be sure to adhere to these regulations so your business can stay compliant with the landscape of worker protection rights. Not only will you avoid legal risks, but your company’s reputation will be that of supporting freelancers and fellow workers in the state.

MyCity Business

In September 2023, New York City launched MyCity Business, a site to help business owners learn about and manage business permits, pay for violations, and discover tips for starting and operating businesses. It’s a great resource for HR professionals to stay compliant with the legal obligations of operating a business in New York City.

The city also recently implemented a chatbot as a resource for local business owners to find answers to their questions. Though still in its beta phase, the MyCity Chatbot can provide answers and sources to questions like:

• What is the minimum wage for tipped workers in NYC?
• What is the family and medical leave policy in NYC?
• What non-discrimination laws are in place in NYC?
• What permits are required to operate a business in NYC?

To use the chatbot, go to chat.nyc.gov.