End of 2020 Reminders for NYS & NJ Employers
As this unusual year nears its end, New York (NYS) and New Jersey (NJ) employers must be mindful of several changes to employment laws that will go into effect as of 2021.
New York Paid Family Leave (PFL): Starting on January 1, 2021, the amount of paid family leave available to eligible employees under NYS law will increase from ten (10) weeks to twelve (12) weeks of leave. Wage replacement benefits under the law will increase from 60% of the employee’s average weekly wage (capped at $840.70) to 67% of the average weekly wage (capped at $971.61).
As a reminder, PFL provides employees with job-protected paid time off for the purposes of bonding with their new child, caring for a family member with a serious health condition and/or assisting loved ones when a family member is on deployment while actively serving in the military. Since March 2020, employees have also been able to use paid family leave time and benefits for reasons related to COVID-19, i.e., when they or their minor dependent children are under a mandatory or precautionary order of quarantine or isolation issued by a government entity, or when they need to care for a family member with COVID-19.
Sick Leave: Under the new NYS sick leave law, NYS employees started accruing sick leave on September 30, 2020, and may start using their sick leave as of January 1, 2021. NYS employers with fewer than four (4) employees and net income less than $1 million the previous tax year will be required to provide their employees with up to forty (40) hours of unpaid sick leave per year. NYS employers with fewer than four (4) employees and net income of $1 million or more the previous tax year, and NYS employers with 5-99 employees, will be required to provide their employees with up to forty (40) hours of paid sick leave per year. NYS employers with 100 or more employees will be required to provide their employees with up to fifty-six (56) hours of paid sick leave per year.
New York City (NYC) amended its sick leave law so that, with a few exceptions, it matches the accrual and use provisions of the NYS sick leave law. The employers most affected will be small employers and those with 100 or more employees. As of the start of the new year, NYC employers with fewer than four (4) employees and net income of $1 million or more the previous tax year will be required to provide their employees with up to forty (40) hours of paid sick leave per year. NYC employers with 100 or more employees will be required to provide their employees with up to fifty-six (56) hours of paid sick leave per year. All other NYC employers will continue to be required to provide their employees with up to forty (40) hours of paid sick leave per year.
The new NYS sick leave law is separate from the NYS COVID-19 sick leave law mentioned below.
Minimum Wage for 2021: All NYC employers should already be paying their employees at least $15.00 per hour. As of December 31, 2020, the hourly minimum wage will increase to $14.00 in Nassau, Suffolk and Westchester Counties, and to $12.50 throughout the remainder of NYS.
In New Jersey, as of January 1, 2021, most employers must pay their employees at least $12.00 per hour; seasonal and small employers (fewer than six (6) employees) must pay their employees at least $11.10 per hour; and NJ agricultural employers must pay their employees at least $10.44 per hour.
Anti-Sexual Harassment Training: NYS employers with fifteen (15) or more employees and all NYC employers regardless of size (i.e., even with one employee) must require their employees to complete anti-sexual harassment training before the end of 2020. Employers should arrange for employees to acknowledge in writing their completion of the training and should keep such records.
Currently, NJ does not require employers to provide anti-sexual harassment trainings to their employees. However, NJ employers should be aware that earlier this year, Governor Murphy proposed a bill that would require NJ employers to provide, once every two years, interactive anti-sexual harassment training to their employees. We will continue to track any developments regarding this bill.
If you have additional questions or concerns about year-end duties as NYS or NJ employers, please contact Chaim Book at cbook@mb-llp.com or Sheryl Galler at sgaller@mb-llp.com.
