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  • 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! 

  • On September 1st, 2023, California Governor Gavin Newsom took a step toward bolstering employee rights by signing Senate Bill 699 into law. This legislation reaffirms and strengthens the state’s long-standing commitment to employee freedom in pursuing their chosen professions, trades, or businesses. The bill reiterates California’s Business and Professions Code Section 16600 and introduces new provisions that have far-reaching implications for employers and employees. Continue reading to delve into the details of SB 699 and explore the broader impact of this legislation.

    California’s Commitment To Employee Freedom

    California has long been a trailblazer in protecting the rights of its workforce. The cornerstone of this commitment is Business and Professions Code Section 16600, which boldly declares, “Every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” California courts have consistently upheld this provision, making it clear that contracts prohibiting post-employment noncompetition, nonsolicitation of customers, and nonsolicitation of employees are generally unenforceable, with only a few exceptions.

    SB 699: Strengthening Existing Protections

    While SB 699 reaffirms the existing law, it also extends the state’s protections. The following are critical aspects of the bill:

    1. Extraterritorial enforcement: SB 699 clarifies that any contract void under Section 16600 is unenforceable, regardless of where or when it was signed. This means that even if you signed a restrictive covenant outside of California or were employed elsewhere, you’re still protected by the state’s employee-friendly laws.
    2. Ban or noncompete clauses: This bill takes a firm stance against noncompete clauses and other restrictive covenants that violate Section 16600. Employers are now prohibited from entering into such contracts with employees or prospective employees.
    3. Enforcement rights for employees: One of the most significant changes brought by SB 699 is the explicit granting of enforcement rights to employees. This means that if an employer attempts to enforce a contract restricting an employee’s ability to pursue their lawful profession, trade, or business, the employee has a legal recourse to challenge it.

    Consequences For Employers

    Employers must take note of the implications of SB 699. Violations of this legislation could result in civil penalties. This means that businesses operating in California should review their existing contracts and employment practices to ensure compliance with the strengthened employee protection laws.

    The Effective Date

    SB 699 is scheduled to take effect on January 1st, 2024, with regard to the new enforcement rights it creates. This grace period allows employers and employees to adjust to the new legal landscape and ensure they comply with the law.

    How A PEO Can Be Your Small Business’s Strategic Partner

    In the midst of these changing legal landscapes, small businesses in California may find navigating the complexities of employment contracts and compliance challenging. If you’re a small business in California, have you considered partnering with a professional employer organization (PEO)? A PEO like Group Management Services (GMS) acts as a guiding light. GMS specializes in human resources, employee management, and compliance. By partnering with GMS, small businesses can access expertise that helps them stay on the right side of the law while focusing on growth and success. In this dynamic environment, where the protection of employee rights takes center stage, GMS acts as a valuable partner, ensuring that your business thrives while maintaining a steadfast commitment to the welfare of your employees. As the tides of employment law continue to shift, a PEO can be your anchor, providing stability and peace of mind for your business in California. Interested in learning more about how GMS can help your business? Get a quote from us today.