Running a business in New York comes with numerous legal obligations and responsibilities. From wage laws to discrimination and harassment, New York employers face a complex set of regulations that must be followed. Navigating these issues carefully is essential to protect the business and its employees. Our employment lawyers have created this guide to provide employers with 10 simple steps to take to avoid legal issues and create a safer, more compliant workplace.
1. Stay Informed and Compliant with New York Employment Laws
New York has some of the strictest employment laws in the country, and non-compliance with these can lead to legal action. State laws cover a broad range of areas, including:
- Minimum Wage and Overtime: Minimum wage varies by location, and employers must stay up-to-date on the latest changes. It’s essential to classify employees correctly as exempt or non-exempt under the Fair Labor Standards Act (FLSA) and ensure overtime is paid accordingly.
- Paid Sick and Family Leave: Employers must provide paid sick leave and paid family leave and are encouraged to review such policies in their employee handbooks to avoid misunderstandings.
- Anti-Discrimination Laws: New York has stringent anti-discrimination and anti-harassment laws, extending protections beyond federal requirements. The New York State Human Rights Law, for example, prohibits discrimination based on gender identity, sexual orientation, marital status, and other characteristics.
Having legal counsel who is well-versed in state laws and updates can help employers avoid violations that could lead to costly lawsuits.
2. Create a Comprehensive Employee Handbook
A well-drafted employee handbook provides clarity on company policies, employee rights, and workplace expectations. In the event of a legal dispute, a handbook can serve as evidence that policies were established, accessible, and uniformly applied. Having employees sign an acknowledgment of the handbook can further reinforce that they understand and agree to abide by the policies.
3. Provide Regular Anti-Harassment Training
New York employers are legally required to provide yearly sexual harassment prevention training for all employees. This training should cover topics such as what constitutes harassment, how employees can report it, and the disciplinary measures for violators. The training should also include examples relevant to the workplace and make clear that retaliation against anyone who reports harassment is strictly prohibited.
Providing consistent, well-documented training not only fulfills a legal obligation but also helps prevent behaviors that could lead to claims.
4. Enforce Clear Hiring and Termination Practices
Hiring and firing decisions are common sources of legal claims, so it’s essential to be transparent and consistent in these processes.
During hiring, ensure that interview questions focus on a candidate’s qualifications rather than personal details that could lead to discrimination claims. Avoid asking about age, marital status, national origin, or any other protected characteristics.
When terminating employees, follow a documented process to show that the decision was made fairly and was not based on discriminatory factors. It’s helpful to have a progressive discipline policy in place that documents any previous issues and corrective actions taken before termination. Keep detailed records of employee performance evaluations, disciplinary actions, and any warnings issued to establish a clear and fair termination process.
5. Maintain Accurate Wage and Hour Records
Wage and hour disputes are among the most common reasons for lawsuits in New York. Employers must maintain accurate payroll records, track hours, and ensure that employees are compensated for overtime. This also includes following guidelines for rest and meal breaks, especially for non-exempt employees. Conduct regular payroll audits to catch and correct any inconsistencies before they become legal issues.
6. Ensure Proper Employee Classification
Classifying employees correctly as either exempt or non-exempt, as well as distinguishing between employees and independent contractors, is crucial to avoiding wage and hour violations. Misclassifying employees can lead to costly fines, penalties, and lawsuits.
To classify employees properly, review the job duties of each position and ensure they align with federal and state definitions. For independent contractors, ensure the role meets New York’s strict criteria and use an independent contractor agreement that specifies the working relationship. Regularly review job classifications to ensure ongoing compliance.
7. Establish a Formal Complaint Process
A formal complaint process can prevent minor issues from escalating into lawsuits. Employees should feel comfortable reporting issues without fear of retaliation, and all complaints should be addressed promptly. For New York employers, this is particularly important, as retaliation claims are commonly brought by employees who feel they were punished for speaking up.
That said, employers should consider creating an anonymous reporting option, such as a hotline or online form, for employees who prefer not to disclose their identity. Document each complaint, how it was investigated, and the resolution reached. Regularly communicate with employees to ensure they understand the complaint process and feel empowered to use it if needed.
8. Implement Strong Privacy and Data Security Policies
New York has strict data privacy and cybersecurity laws, including the Stop Hacks and Improve Electronic Data Security (SHIELD) Act. This law requires businesses to protect the personal data of New York residents and to notify individuals in the event of a data breach.
Employers should ensure that employee records and sensitive information are securely stored and access is limited to authorized personnel. They should also provide training on cybersecurity best practices, such as identifying phishing attempts and securing personal devices if remote work is allowed. Keeping employees’ personal information secure can help prevent data breaches and the resulting lawsuits or fines.
9. Document Everything
In the event of a legal dispute, thorough documentation can be one of an employer’s best defenses. Keep records of employee performance, complaints, disciplinary actions, and any accommodations or leave provided. Ensure that performance evaluations are fair and consistent and that records of disciplinary actions are specific and factual.
Additionally, it’s important to document employee acknowledgment of policies, training attendance, and handbook receipt. When issues arise, employers who have accurate records of events and actions taken are better positioned to defend themselves.
10. Consult With a Skilled Employment Lawyer Regularly
Even with strong internal policies, it’s beneficial to consult an employment lawyer who understands New York’s employment laws. Legal counsel can assist with reviewing handbooks, addressing disputes, and ensuring the company’s policies are current and compliant.
Regular legal consultations allow employers to address potential issues proactively, reducing the risk of lawsuits. Legal professionals can also provide insights on best practices for handling complex issues, such as layoffs, restructuring, or employee accommodations, which can be particularly beneficial in New York’s competitive business landscape.
Facing a Lawsuit? Let Our Employment Lawyers Help
Avoiding lawsuits is a priority for any business, and New York employers must navigate a particularly complex set of employment laws. By staying informed, maintaining thorough documentation, and building a respectful, compliant workplace culture, employers can minimize legal risks. Taking these proactive steps not only helps protect against legal action but also fosters a positive environment where employees feel valued and respected. If you have questions or concerns, contact us today to discuss your options under the law.
