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October 17, 2023
Many Employment Law Changes Are Coming to the Ever Upward State
On September 6, 2023, and effective immediately, Governor Kathy Hochul signed a package of legislation that includes: (1) barring employers from disciplining workers who do not wish to attend captive audience meetings; (2) amending the New York criminal larceny statute to include wage theft; and (3) increasing the minimum benefits for workers’ compensation.
New York passed a law to protect “employee freedom of speech and conscience” by prohibiting employers from coercing employees into attending or participating in meetings concerning the employer’s views on political or religious matters. See 2023 NY S.B. 4982.
In enacting the law, New York relied on research that shows that employers nationwide have increased partisan messaging to employees and that employees feel pressured to follow their employers’ political positions. The research shows that employers also are sharing their opinions on legislative issues, unionism, and religious topics.
The new law defines “political matters” as matters relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political, civic, community, fraternal, or labor organization.
The new law defines “religious matters” as matters relating to religious affiliation and practice and the decision to join or support any religion organization or association.
New York employers must post a notice to employees informing them of their rights pursuant to this new law.
Previously under New York law, “a person… commits larceny when, with intent to deprive another of property or to appropriate the same to himself or to a third person, he wrongfully takes, obtains or withholds such property from an owner thereof.” See N.Y. Penal Law § 155.05(1). New York’s recent amendment adds “compensation for labor services” to the definition of property. See § 155.00(1).
The amendment also adds “by wage theft” to the definition of larceny: “A person obtains property by wage theft when he or she hires a person to perform services and the person performs such services and the person does not pay wages, at the minimum wage rate and overtime, or promised wage, if greater than the minimum wage rate and overtime, to said person for work performed.” See § 155.05(2)(f).
New York law has long provided for an annual increase in maximum weekly benefits under its workers’ compensation law. However, the minimum weekly benefit – currently set at $150 – has increased only on a piecemeal basis.
New York’s new law amends the workers’ compensation law to provide that benefits for permanent or temporary partial disability, or permanent or temporary total disability, be increased to not less than $275 in 2024, increased to not less than $325 in 2025, and shall not be less than one-fifth of the statewide average weekly wage beginning in 2026. See 2023 NY S.B. 1161-A.
New York Limits Invention Assignments
Effective September 15, 2023, a new section of the New York Labor Law limits an employer’s right to assignment of their employees’ inventions. Specifically, Section 203-f of the Labor Law bans the enforcement of invention assignments that entitle employers to intellectual property that employees develop entirely on their own time without using their employer’s equipment, supplies, facilities, or trade secrets.
A few exceptions to the ban exist:
Furthermore, Section 203-f renders unenforceable and against public policy any contractual provision requiring an employee to assign, or offer to assign, to their employer any rights in an invention developed on their own time.
New York Requires Notice of Right to File for Unemployment
Enacted on September 14, 2023, New York amended Section 590 of its Labor Law to require employers to provide written notice of eligibility for unemployment benefits to any employee whose scheduled hours are reduced or whose employment is terminated. Employers must provide the notice no more than five working days after the employee’s termination date or reduction of working hours.
The new law is based on a finding that (1) many workers, when laid off or subject to a reduction in working hours, do not realize that they are eligible for unemployment assistance; and (2) employers are dissuaded from informing employees about their eligibility because unemployment assistance claims may increase their unemployment insurance payments.
The new law becomes effective on November 13, 2023.
New York Bans Employers from Requiring Disclosure of Personal Social Media Credentials
Enacted on September 14, 2023, Bill A836 will prohibit employers from requesting or requiring employees or job applicants to disclose the login credentials to their personal social media accounts. The new law also will prohibit employers from retaliating against employees or job applicants who refuse to disclose such information.
More specifically, the law declares it unlawful for an employer to request, require, or coerce – as a condition of hiring, employment status, or for use in disciplinary actions – any employee or job applicant to (1) disclose any username and password, password alone, or other authentication information for accessing a personal account through an electronic communication device; (2) access the employee’s or applicant’s personal account in the presence of the employer; or (3) reproduce in any manner photographs, videos, or other information contained within a personal account obtained by prohibited means.
Employers may continue to view information on publicly available social media accounts.
This law becomes effective on March 12, 2024.
In light of this legislation, New York employers should review and revise their employment agreements to ensure they comply with the new law regarding invention assignments. Employers also should assess their current social media policies and practices to ensure compliance with the law. Furthermore, employers should review their practices, as well as train managers and Human Resources professionals, on appropriate meeting content; onboarding, promotion, and disciplinary practices; employee departure obligations; and employee benefits, like workers’ compensation. Lastly, employers should take proactive measures to protect their businesses from wage theft. We can help.
*Special thanks to Ava Petrellese, our Paralegal, for her contributions to this article.
The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in New York, Pennsylvania, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
