On January 20, 2024, New York City implemented a groundbreaking law that empowers employees to take legal action against employers for violations of the Earned Safe and Sick Time Act (ESSTA). This new law, passed by the New York City Council on December 20, 2023, is set to transform the landscape of employee rights and employer responsibilities within the city. Let’s dive into the key provisions and implications of this significant development.
Private Right Of Action
The new law introduces a private right of action, enabling employees to file lawsuits in court alleging breaches of the ESSTA. This allows individuals to seek legal recourse within two years of discovering a potential violation without necessarily filing a complaint with the Department of Consumer and Worker Protection (DCWP).
Understanding ESSTA
The ESSTA, a cornerstone of employee rights in New York City, grants eligible employees the privilege to use safe and sick leave for personal or family care and seek legal and social services in cases of domestic violence, unwanted sexual contact, stalking, or human trafficking. Employers must provide between 40 and 56 hours of paid or unpaid leave, depending on their size.
Implications For Employers
New regulations
In October 2023, the DCWP finalized new regulations to the ESSTA, clarifying employer size determination, remote worker inclusion, notice requirements, and accrual methods. Employers need to familiarize themselves with these updated regulations to ensure compliance.
Penalties and remedies
The new law alters the civil penalties for ESSTA violations, with fines ranging from $500 to $1,000 per violation within two years. Additionally, plaintiffs can now seek injunctive and declaratory relief, attorneys’ fees, costs, and other appropriate damages in addition to compensatory damages.
Legal recourse
Previously, individuals could only file complaints with the DCWP, which would then investigate the claims. However, the new law expands this process by allowing individuals to simultaneously file a civil action in court and a DCWP complaint for the same alleged violation.
Reporting Requirements
The new law also mandates the DCWP to report the following on its website annually:
-Number and nature of filed complaints, including unsubstantiated complaints and notices of violations issued
-Number of civil actions filed, provided the DCWP was informed of such actions
-Number of opened and closed investigations, along with the average time for complaint resolution
-Average time it takes for a complaint to be resolved
Advice For Employers
In light of these changes, New York City employers are advised to revisit their safe and sick leave policies, ensuring alignment with the amended ESSTA and the updated DCWP regulations. It becomes imperative for employers to uphold their obligations under the ESSTA to avoid potential liability from employees.
In navigating the evolving landscape of employment laws, including the recent changes to ESSTA, small business owners in New York City may find value in partnering with a professional employer organization (PEO) like GMS. GMS’ experts can offer vital support by providing access to comprehensive HR solutions, ensuring compliance with ESSTA and other labor regulations, managing payroll and benefits, and offering expertise in navigating the complexities of employee-related matters. By leveraging the resources and expertise of GMS, small business owners can focus on growing their business while entrusting critical HR responsibilities to a trusted partner, thereby fostering a more efficient and compliant workplace environment. Interested in learning more? Contact us today!