By: Andrew D. Bobrek

As part of this year’s budget, New York state used tax revenues to pay off its UI Trust Fund debt – amounting to almost $7 billion – which then allowed state officials to substantially increase benefits for eligible workers in an expedited manner.  More information from New York state can be found here.

Governor Hochul commented that this change will “put real money back into the pockets of employers and workers alike,” as well as further supports unemployed individuals. It is true that employers should no longer receive annual “Interest Assessment Surcharge” bills, with the state’s UI Trust Fund now solvent, and that employers will face new, reduced contribution rates.  But New York also raised the taxable wage base for UI contribution payments from employers in the coming years and the total cost of UI claims paid by New York will of course increase significantly moving forward.  

No doubt employers across the New York will follow the impact of these changes very closely.  Among other things, nonprofitmaking institutions that have elected New York’s UI “benefit reimbursement” option (i.e., by reimbursing New York dollar-for-dollar on approved and paid UI claim) should carefully evaluate their claims history and plan for any projected increased costs.  In certain circumstances, it may be less costly for nonprofitmaking institutions to pay contributions under New York’s “experience rating” model instead.
If you have any questions or would like additional information, please contact Andrew D. Bobrek or the Bond attorney with whom you are regularly in contact.

On Sept. 14, 2023, Gov. Kathy Hochul signed three pieces of legislation into law, all of which are reflective of Gov. Hochul’s ongoing efforts to strengthen workers’ rights in New York State.

Written Notice of Unemployment Benefits

Bill (S. 4878-A/A. 398-A) amends Section 590 of the Labor Law. Under this new legislation, employers must provide written notice of eligibility for unemployment benefits to any employee who has been terminated, temporarily separated, experienced a reduction in hours or any other interruption of continued employment that results in total or partial unemployment. This information must be disclosed on a form furnished or approved by the Department of Labor (DOL).

The new law will take effect on Nov. 13, 2023.

Personal Account Information Disclosure

Beginning March 12, 2024, employers are prohibited from requesting, requiring or coercing an employee or job applicant to: (i) disclose a username and password or other login information in order to access a personal account through an electronic communication device; (ii) access a personal account in the employer’s presence; or (iii) reproduce information contained within a personal account through unlawful measures. This new legislation, which amends the Labor Law to add section 201-i, prohibits an employer from discharging or disciplining an employee or refusing to hire an applicant for failure to disclose such information.

This law is also subject to certain exceptions and limitations. For example, an employer may require disclosure of personal information in order to access nonpersonal accounts that allow access to the employer’s internal computer or information systems. Employers may also view, access and rely on information obtained through the public domain. The law also allows an employer to obtain login information for accounts provided by the employer where the account is used for business purposes and the employee was provided prior notice of the employer’s right to inquire about such information.

An employer is also permitted to access an electronic communications device which is paid for in whole or in part by the employer where the provision of or payment for such device was conditioned on the employer’s right to access. However, the employee must have been provided with prior notice of the condition and explicitly agreed to it. Nevertheless, the employer is still prohibited from accessing any personal accounts on the device.

This law excludes law enforcement agencies, fire departments and departments of corrections and community supervision.

DOL Notices to Unemployment Applicants

Under this new legislation, the DOL is now required to provide notice to unemployment applicants of the supplemental nutrition assistance program (SNAP) and the special supplemental nutrition program for women, infants and children (WIC). This new law takes effect Jan. 12, 2024.

If you have any questions about the information presented in this memo, please contact Kali Schreiner, any attorney in Bond’s labor and employment practice or the attorney at Bond with whom you are regularly in contact.

On March 29, 2023, the New York Department of Labor announced a proposal to update the New York Worker Adjustment and Retraining Notification (NY WARN) Act regulations to provide clarification and conform to statutory changes enacted in 2021. The public comment period for the proposed regulations will remain open until May 30, 2023.

The NY WARN Act, originally enacted in 2008, and the federal Worker Adjustment and Retraining Notification (WARN) require private employers to provide employees with written notice of impending mass layoffs, plant closures and relocations.

Read More >> New York Proposes Update to WARN Act

On Jan. 14, 2021, New York State Department of Labor (DOL) Commissioner Roberta Reardon signed an Order to temporarily modify the unemployment benefit charging system and ease the burden for unemployment insurance charges incurred by all employers during the COVID-19 pandemic. 

Read More >> NY DOL Indefinitely Cancels Unemployment Insurance Charges

The long-awaited stimulus relief bill has officially been enacted. On Dec. 21, 2020, Congress passed the Consolidated Appropriations Act, 2021 (Bill), several months after aid had lapsed for many individuals and businesses from the first stimulus bill passed early-on in the COVID-19 pandemic. Congress came together to push through a 5,593 page, $900 billion stimulus package intended to help those individuals and businesses who continue to struggle economically as a result of the ongoing pandemic. After expressing bipartisan criticism of its contents, President Trump finally signed the Bill on Dec. 27, 2020. 

Read More >> Long-Awaited Stimulus Relief Bill Has Passed: Key Highlights for Employers

In what will surely be an important decision for “gig” economy businesses, the Third Department recently upheld two decisions of the Unemployment Insurance Appeal Board finding that Uber is an employer and therefore required to make unemployment insurance contributions.¹ 

Read More >> Third Department Upholds Finding that Uber is an Employer