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Vol. 5,  #5
May 1, 2014

 

Sick Leave Policies

Guidelines for NYS and NYC Dealers

 

 

      

     New York City recently enacted new legislation that requires most businesses to provide paid sick leave to their employees.  Under this new rule covered employees have the right to use sick leave for the care and treatment of themselves and/or a family member.  New York State, however, has not adopted these rules.  Employers outside New York City are not required to provide paid sick leave, but if they do, they must follow specific guidelines regarding sick leave policies.

 

New York State Requirements

 

     There is no requirement under New York State Law for employees to be paid for time not actually worked.  Sick time falls under the "time not worked" classification.  Employers are free to voluntarily decide if and when sick leave benefits are provided.   

 

     If an employer provides sick leave then State law requires that the employer notify their employees of the policy in writing by distributing the policy to each employee or by publicly posting the sick leave policy.  The policy should specify how sick time is accrued and what happens to unused sick time.  Employees must be paid for accrued, but unused sick time, unless the employer issues a written policy specifying that employees will not be paid for unused accrued time. 

 

   New York City Requirements

  

     Businesses in New York City with five (5) or more employees must comply with New York City's Earned Sick Time Act.  Under the law, covered employees have the right to use sick leave for the care and treatment of themselves or a family member.  Employees can accrue up to forty (40) hours of paid sick time a year.  As of April 1, 2014, employees in New York City earn one (1) hour of sick time for every thirty (30) hours worked.  Sick time begins to accrue as soon as an employee is hired, however, an employee will have to work for 120 days before they are able to use the sick time.  Employers who have an existing sick leave policy must ensure that their policy meets or exceeds the requirements of the law.

 

     A Notice of Employee Rights must be provided to each employee by May 1, 2014.  The Notice must contain language on the employee's right to sick leave, including accrual and use of sick leave, the right to file a complaint, and the right to be free from retaliation.  The Notice must state how the employer's calendar year is defined and include the start and end date.  Employees have a right to the notice in English and, if available on the Department of Consumer Affairs website, in their primary language. The notice is available in Spanish, Chinese, French-Creole, Italian, Korean, and Russian at nyc.gov/PaidSickLeave. 

 

     Employers may require documentation from a licensed health care provider if an employee uses more than three (3) consecutive workdays as sick leave.  However, the law prohibits an employer from requiring the health care provider to specify the exact medical reason for sick leave.  

 

      An employee can carry over up to forty (40) hours of unused sick leave to the next calendar year.  However, employers may limit an employee's use of sick leave to forty (40) hours of sick leave per calendar year.  Employers are also free to choose whether or not to pay an employee for unused sick leave at the end of the calendar year. 
     

     For more information on sick leave policies or any other employment policies or handbooks, please contact Stevan LaBonte at 516-280-8580.       

  

 

DO YOU NEED A TRUST?

 

            

     Too often we fail to consider the importance of estate planing.  No matter your net worth it is important to establish a plan for the distribution of your assets.  One such manner is to establish a Trust.  A Trust is a legal arrangement between the person establishing the Trust, usually referred to as the Grantor, and the person or entity who manages the assets of the Trust pursuant to the terms of the Trust (the "Trustee").  The Grantor generally funds the Trust with his or her own assets.  Assets funded into a Trust can be liquid, such as cash or equities, or can consist of real property, or both.

     There are many types of Trusts, used for various purposes.  A Trust can be established and funded during your lifetime.  Such a Trust is referred to as a Living Trust or inter vivos Trust.  A Trust can also be established at your death through the terms of your Last Will & Testament, known as a Testamentary Trust.     Whether or not a Trust is appropriate for you depends upon many factors, including your estate planning goals, your finances and your family. 

     A Living Trust would be either Revocable or Irrevocable. A Revocable Trust can be revoked and/or changed at any time in any way during the life of the Grantor.
Income from a Revocable Trust remains taxable to the Grantor and the assets are part of the estate of the Grantor for estate tax purposes.  A Revocable Trust does not provide any asset protection from creditors.  A Revocable Trust is a substitute for a Last Will & Testament.  A major benefit is that a Revocable Trust need not be probated in Court, as does a Will. I t is particularly useful when the Grantor owns real property in another State, thus avoiding the probate of the Will in New York and in the other State.  It is also particularly useful for seniors or those with a disability, thus allowing a co-Trustee or Successor Trustee to manage the Trust funds with ease.

     Funding an Irrevocable Trust has tax consequences and can be used to reduce the size of the Grantor's estate for estate tax purposes.  An Irrevocable Trust can be used to own life insurance, keeping the proceeds out of the taxable estate of the Grantor.  We often use an Irrevocable Trust to protect the Grantor's assets from the Grantor's creditors.

     A special type of Irrevocable Trust is a Special Needs Trust also referred to as a Supplemental Needs Trust.  It can be established during the lifetime of the Grantor or at his/her death, through a Will and is specifically designed for an individual who is disabled and receiving government benefits, such as Medicaid.  The assets in the trust are not considered to be available to anyone, including Medicaid, other than the beneficiary of the Trust (the disabled person).  The Trust assets and income can be used for the benefit of the beneficiary without interfering with his/her eligibility for government benefits.

     This is a brief overview of Trusts. Whether a Trust would be beneficial is unique to each client based upon their estate planning goals, their finances, and the composition of and relationship with their family members.  The establishment of a trust is complicated and everyone should seek legal advice to determine if it is appropriate for their situation.   

   

     For more information about establishing a Trust or other estate planning tools contact Penny B. Kassel, Esq., an attorney with almost 30 years' experience in the area of elder law at 516-294-8300 or visit her website at www.kassellawfirm.com or e-mail her at info@kassellawfirm.com. 

 

 

Should you have any questions or need advice on anything related to the dealership please do not hesitate to give me a call or send me an e-mail.  Your questions will be answered promptly!!!

Sincerely,

Stevan LaBonte

Stevan H. LaBonte, Esq.
LaBonte Law Group, PLLC
100 Ring Road West, #108
Garden City, NY 11530
 
516-280-8580 (Phone)
631-794-2434 (Fax)