Compliance Watch:

What are my rights as an hourly employee in New York?

Just like any other state in the USA, hourly employment in New York refers to a type of employment where workers are paid for each hour they work, as opposed to receiving a salary or a fixed amount of money (as a full-time salaried employee) regardless of the hours put in. 

In this arrangement, if you work more hours, you earn more, and if you work less, you simply earn less. New York law mandates that hourly employees be paid at least the state’s minimum wage for every hour worked and overtime pay—typically one and a half times the regular rate—for any hours worked beyond 40 in a week. These workers are also entitled to certain breaks and are protected by various labor laws to ensure fair treatment in the workplace.

In New York, the regulation concerning working hours centers more around compensation for extended hours rather than strictly placing a hard limit on the number of hours an employee can work in a week. Employees who clock in over 40 hours a week are rightfully entitled to overtime pay. This equitable provision means they must be compensated at a rate of one and a half times their regular pay for each industrious hour worked beyond the customary 40-hour threshold.

For instance, let’s consider Jane, an hourly employee earning $20 per hour. If she works 45 hours in a week, her earnings would be: she would  earn her regular rate for the first 40 hours ($20 x 40 = $800). For the additional 5 hours of overtime, she would earn $30 per hour (1.5 times her regular rate), amounting to $150. So, her total earnings for that week would be $950.

However, there are certain exceptions to this rule. Some hourly employees, depending on their job type, position, and industry sector, might be exempt from overtime regulations. Thus, it’s always essential to proactively familiarize yourselves with New York state labor laws and any specific industry guidelines to ensure you’re being compensated fairly and accurately.

As of December 31, 2022, New York State made an update to its labor laws, raising the minimum wage to $16.00 per hour in NYC, Nassau, Suffolk, and Westchester (in the rest of New York state, the minimum hourly wage is $15.00 per hour). This move is particularly significant, especially when you compare it to the Federal Minimum Wage, which currently stands at $7.25 per hour. Notably, the state’s minimum wage surpasses the federal rate by a very substantial margin.

In situations like this, where there’s a discrepancy between state and federal rates, employers are required to pay their employees the higher of the two rates. In this case, that means workers should receive at least the $16.00 per hour rate despite the lower federal benchmark.

In New York, any hours worked beyond standard 40 in a single work week qualify as overtime. When an hourly employee reaches this threshold and works additional hours, they are entitled to receive overtime pay. The associated pay for overtime in New York is one and a half times the regular hourly rate. So, if an hourly employee typically earns $10 per hour, for any hours worked beyond the standard 40 in a week, they would earn $15 per hour for those extra hours.

New York’s Labor Law, under Section 162, mandates that every employer—whether in the public or private sector—must provide meal breaks to all employees working a minimum of six hours daily. This rule covers both salaried and hourly employees. While these meal breaks are an official requirement, employers aren’t obligated to pay for this time off. Moreover, there’s no stipulation for employers to offer shorter, additional breaks during the workday.

In New York, the rights of hourly employees regarding time off and leaves are determined by a collection of state laws, ensuring protection and fair treatment for workers in various situations.

• New York State Paid Family Leave (PFL): Introduced in recent years, this law offers paid leave for hourly employees to manage family-related matters. This can include bonding with a newly born or adopted child, caring for a seriously ill family member, or addressing exigencies due to the active military service of a family member. Even now, the PFL program continues to evolve progressively, with noticeable expansions in the duration of leave and benefits over time.
• New York State Sick Leave: Effective September 30, 2020, New York introduced mandatory sick leave for hourly employees. The amount of sick leave and whether it’s paid or unpaid depends on the employer’s size and net income. This law ensures that workers can accrue sick leave based on hours worked and can use it for various health and safety-related reasons only.
• Workers’ Compensation Law: This law offers protection for employees who unfortunately suffer work-related injuries or illnesses. If qualified and approved, an employee can receive a portion of their regular wage while they recover, among other essential benefits.
• Temporary Disability Insurance: If an hourly employee suffers an off-the-job illness or injury, this law provides them with some portion of their usual wage. It’s a short-term benefit and serves as a safety net when an employee can’t work due to reasons unrelated to their job.
• New York State Human Rights Law and the Family Medical Leave Act (FMLA): These laws protect employees from discrimination and ensure that eligible workers can take unpaid, job-protected leave for specific medical and family reasons. While FMLA is a federal law, the state’s Human Rights Law further reinforces protections against unfair treatment.

In New York, employers can’t just take deductions from an employee’s paycheck on a whim. They can only make these deductions if the law specifically requires or permits them. Even in cases where it’s permitted, the employee needs to give their written consent. Some typical examples of allowed deductions include insurance premiums and prepaid legal plans.

• Minimum Wage: As of December 31, 2022, New York State made an update to its labor laws, raising the minimum wage to $16.00 per hour in NYC, Nassau, Suffolk, and Westchester (in the rest of New York state, the minimum hourly wage is $15.00 per hour).. This move is particularly significant, especially when you compare it to the Federal Minimum Wage, which currently stands at $7.25 per hour. Notably, the state’s minimum wage surpasses the federal rate by a very substantial margin.
• Overtime: In New York, employers are required to pay hourly employees at a rate of 1.5 times their regular wage for any hours worked beyond the standard 40 in a week.
• Severance Pay: Under New York labor regulations, employers aren’t legally obligated to offer severance pay to their hourly employees. However, if they opt to provide such benefits, they must strictly adhere to their established policy or existing employment agreement.
• Paid Sick Leave: Effective September 30, 2020, New York introduced mandatory sick leave for hourly employees. The amount of sick leave and whether it’s paid or unpaid depends on the employer’s size and net income. This law ensures that hourly employees can accrue sick leave based on hours worked and can use it for various health and safety-related reasons only.
• Vacation Time: New York doesn’t mandate employers to grant paid vacation time to hourly employees. Yet, they must adhere to the federal FMLA and fulfill its associated requirements.
• Paid Maternity/Paternity Leave: Under the Paid Family Leave (PFL) program, New York State now offers a generous 12 weeks of fully paid parental leave for eligible employees (hourly and salaried), allowing them dedicated time to bond with a newborn, adopted, or foster child.
• Domestic Violence: New York has laws that provide certain protections and rights for victims of domestic violence. New York State Labor Law Section 196-b requires employers to provide employees who are victims of domestic violence with reasonable time off (up to a certain number of days) to address issues directly related to the domestic violence incident.
• Unemployment Benefits: Hourly employees in New York are entitled to unemployment benefits if they lose their jobs through no fault of their own. The duration and amount vary based on earnings and eligibility, and job search requirements must be met to continue receiving benefits. During the COVID-19 pandemic, federal programs provided additional support.

In New York, hourly employees enjoy a range of legal protections thoughtfully designed to ensure their rights in the workplace. One of the primary protections is the establishment of a minimum wage. This wage rate is mandated to be paid to most hourly workers, with the exact amount varying based on factors such as location within the state and the size of the employer.

Over the years, New York has worked towards increasing the minimum wage, with periodic adjustments made to ensure that workers’ earnings keep pace with the cost of living.

Additionally, New York labor laws also address overtime. Employees who work more than 40 hours a week are generally entitled to receive overtime pay, typically at a rate of one and a half times their regular hourly wage. This provision aims to compensate hourly workers fairly for their extended work hours and deter employers from overburdening their staff.

Another critical area of protection is regarding meal breaks and rest periods. In New York, most hourly workers are entitled to meal breaks, especially if they work shifts that span particular hours of the day. The specifics can vary, but in general, employees working a shift of more than six hours that extends over the noonday meal period are entitled to at least a half-hour break. There are similar provisions in place for those working through the evening meal period.

Additionally, the New York state also offers robust protections against wage theft. Employers are obligated to provide their employees with a clear and itemized statement of their earnings and deductions with every payment of wages. This transparency ensures that workers are paid correctly for their hours worked and any overtime they’ve accrued. Furthermore, employers are strictly restricted from making unauthorized deductions from an employee’s paycheck.

Lastly, New York has provisions to ensure equal pay for equal work. This comprehensive policy means that employers cannot pay workers differently based on gender, race, or other protected characteristics when they are performing substantially similar work. The primary aim is to vigorously promote fairness and proactively prevent wage discrimination in the workplace.

In New York, employment relationships are generally considered “at-will.” This means that unless there is a contract in place that specifies otherwise, employers typically have the legal right to terminate employees without having to provide a specific reason. However, it’s important to note that such terminations must not involve illegal acts of retaliation or discrimination, as detailed in relevant laws and regulations of the New York state.

In New York, there is no legal mandate that compels employers to grant a severance pay to employees. This means that, unless there is a specific contract or a collective agreement in place, employers are under no obligation to provide any form of severance to their employees upon termination.