My colleague Jon Sider recently wrote about California becoming the first state to raise its minimum wage to $15 per hour. These historic changes to minimum wage laws are also continuing in New York City, where new paid family leave laws have also been implemented.
How New York employers can prepare for minimum wage increases
On April 5, 2016, New York Governor Andrew Cuomo signed a bill raising New York's minimum wage to $15 per hour as part of the 2016-2017 state budget. Governor Cuomo stated that this would benefit over 2 million New Yorkers. New York joins more than a dozen states to date that have signed bills to increase their minimum wage. This new bill means New York state’s minimum wage will inevitably increase by 67 percent over the current $9 per hour minimum wage.
The New York minimum wage increase will be phased in. The way it’s implemented will depend on the number of employees at each company and the company location:
Beginning in 2019, the New York State Division of the Budget director will conduct an annual analysis to examine the economies in each region of New York and determine the impact the minimum wage increase has had on job and business growth. Then a determination will be made as to whether a temporary suspension of the scheduled increases is necessary.
Details of the new Paid Family Leave law
In addition to minimum wage increases, legislation was signed that will require all New York employers to provide 12 weeks of paid family leave benefits to eligible employees, as part of the state’s temporary disability insurance program. The aim of this new measure is to help workers maintain financial stability while caring for a new child or a sick relative, or when a family member is called to active military service. This means New York’s Paid Family Leave law is now one of the most generous such policies in the nation. These family leave benefits are currently designed to be funded entirely through employee contributions.
Beginning on January 1, 2018, New York employers will be required to provide eight weeks of paid family leave benefits to eligible employees. Eligible employees are defined as those caring for a new child or a sick relative, or who have had a family member called to active military service.
New York’s Paid Family Leave law, coupled with historic new paternity leave laws recently passed in San Francisco, shows a turning tide toward the way states and other jurisdictions are handling employee family leave. TriNet is monitoring these ever-changing laws around the nation to help ensure our clients remain compliant.
If you have any questions on how minimum wage law or paid family leave changes will impact your business or how outsourcing your HR administrative functions can help your business grow, as well as retain and attract top talent, please contact me at email@example.com or 203.388.0932 to evaluate your options.
This communication is for informational purposes only; it is not legal, tax or accounting advice; and is not an offer to sell, buy or procure insurance
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