What’s on the Horizon for New York Employers in 2025
December 31, 2024Pay Data Reporting for NYC Employers
Following in the footsteps of California, Illinois, and Massachusetts, employers in New York City could soon be subject to pay data reporting requirements. There is currently a New York City Council bill pending City Commission on Human Rights review that would require employers with more than 25 employees working in the City to report to the Department of Consumer and Worker Protection (DCWP) information relating to their employees in order to improve wage transparency. The information required to be reported would include, for each employee:
- Total salary or wages earned for the previous calendar year;
- The borough in which the employee works;
- The month and year the employee was hired;
- Job title;
- Gender, race and ethnicity;
- Birth year;
- Whether the employee is a member of a labor union;
- Whether the employee works more than 35 hours per week, works less than 35 hours per week, or works on a temporary or seasonal basis not based on the numbers of hours worked per week;
- Whether the employee is a manager; and
- Any additional information required by the department to be reported.
As currently drafted, the first such reports would be due on February 1, 2025, and subsequent reports would be required annually thereafter. However, because the bill is still pending, and will only “take[] effect 30 days after it becomes law,” a February 1st deadline is unlikely. Employers covered by this bill would also have to submit a digital affirmation to DCWP every three years, which certifies the employer’s compliance with federal, state, and local equal pay laws.
In addition to the uncertainty as to when (and if) this bill becomes law, the current draft is also silent as to several key issues, such as penalties, enforcement, revised reporting deadlines, and whether additional guidance will be published to help employers navigate this new requirement. For example, how to report certain data (i.e., gender, race, and ethnicity) when this has not been self-reported by the employee. By comparison, in California, where such reporting has already been in place, employers are provided the following guidance:
If an employee declines to voluntarily provide their race/ethnicity, employers must still report the employee according to one of the seven race/ethnicity categories, using (in the following order): current employment records, other reliable records or information, or observer perception. [California] recognizes the risk of inaccurate race/ethnicity identification based on observer perception alone; this method should only be used after making a good faith effort to obtain race/ethnicity information from the employee voluntarily or from other reliable records. When an employer uses observer perception, [California] encourages employers to utilize the clarifying remarks field to state they have done so, stating for example: “The race/ethnicity of [number] employees in this employee grouping is being reported based on observer perception.”
We will, of course, continue to keep you updated, though NYC employers with more than 25 employees working in the City may want to consider starting to compile the information above in advance of a possible February deadline.
Leave Updates
As previously discussed here: starting January 1, 2025, New York State employers will need to provide employees with 20 hours (within a 52-week period) of paid prenatal leave, to be used for pregnancy and related medical appointments. This prenatal leave can be used in hourly increments. This leave is in addition to the sick leave that employers in New York already must provide to all employees. Further information can be found on the official New York State website for paid prenatal leave: https://www.ny.gov/programs/new-york-state-paid-prenatal-leave
Separately, as of July 31, 2025, New York State employers will no longer need to provide paid time off for employees subject to a quarantine or isolation order due to COVID-19. Until then, however, employers may need to continue to provide time off for employees in line with such orders and CDC guidance.
Minimum Wage and Salary Updates
Lastly, employers in New York should be mindful of slight increases to minimum wage and salary thresholds effective January 1st.
“Administrative” and “Executive” employees classified as exempt must earn at least $64,350 in New York City, Long Island, and Westchester to satisfy the salary basis test, and employees in the rest of the state need to be paid at least $60,405.80.
For hourly minimum wage, employees in New York City, Long Island, and Westchester must be paid at least $16.50 per hour, and employees in the rest of the state need to be paid at least $15.50 per hour.
For more information on this issue or other employment matters, please contact:
Carol M. Goodman at +1 212 592 1465 or [email protected]
Basil C. Sitaras at +1 212 592 1572 or [email protected]
Pamela A. Frederick at +1 212 592 1591 or [email protected]
Meaghan Roe at +1 212 592 1632 or [email protected]
© 2024 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.