Author: Scott Horton

Scott has been practicing Labor & Employment law in New York for almost 20 years. He has represented over 400 employers and authored 100s of articles and presentations and wrote the book New York Management Law: The Practical Guide to Employment Law for Business Owners and Managers. Nothing on this blog can be considered legal advice. If you want legal advice, you need to retain an attorney.

Employment Agreement Webinar

What’s in an Employment Agreement? (Webinar Recap)

On February 27, 2020, Julie Bastian and I presented a complimentary webinar called “What’s in an Employment Agreement?”. For those who couldn’t attend the live webinar, we’re happy to make it available for you to watch at your convenience.

In the webinar, we discuss:

  • Position and Duties
  • Compensation and Benefits
  • Term/Termination
  • Confidentiality and Non-competes
  • Intellectual Property Rights

There is no magic prescription for the perfect employment agreement. Each organization has different structures and operational needs. Your company might not use need employment agreements, or at least not for every employee.

This webinar discusses various common components of employment agreements to help you decide how to use them, if at all, in your business.

Don’t have time to watch the whole webinar right now? Click here to download the slides from the webinar.

Why You Should Watch “What’s in an Employment Agreement?”

It’s seldom an optimal strategy to take an employment contract off the shelf somewhere and use it across your organization. Each provision has potential practical and legal impacts. So you have to carefully think through what your business needs and adjust your agreements accordingly.

There are some basics found in most employment agreements. But even before you get there, you have to decide whether every employee should sign a written contract. In some industries, they’re very common. In others, not so much.

Employment agreements can range from one page to dozens. This webinar will help you match your needs and objectives to what you put on paper and ask employees to sign.

Do you even know what your employees are agreeing to right now? Use this webinar as a checklist to better understand what you can or can’t and should or shouldn’t expect employees to agree to in your situation.

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New York Employment Legislation

New York Employment Legislation Watch – Early 2020

In 2019, the New York State Legislature made substantial changes to workplace laws. It seems likely that this trend will continue. Let’s take a first look at some proposed employment legislation still pending for possible adoption in 2020.

Note that at the time of writing, none of the bills addressed here have become law. We will continue to track this and other New York employment legislation for updates.

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Proposed Bills

These bills have been introduced in the 2020 Legislative Session. Some have been introduced in the past, but did not become law. That is not a clear indication of whether the bill or similar initiative won’t be successful this year. 2019 brought about many changes in New York employment law that would not have become law in prior sessions.

S04883 – “Paid Sick Leave Act”

This bill would require all employers in New York State to provide paid sick leave for their employees.

Sick leave would accrue at the rate of one hour of leave for every 20 hours worked up to a maximum of 80 hours. For small businesses with less than 10 employees, however, the maximum accrual would be limited to 40 hours.

The bill provides that employee must be able to use the paid sick leave:

  • when the employee is ill or injured;
  • for the purpose of the employee’s receiving medical care, treatment, or diagnosis; and
  • to aid or care for certain family members when they are ill or injured, receiving medical care, treatment, or diagnosis.

Covered family members include children, parents, legal guardians/wards; siblings; grandparents; grandchildren; and spouses or another “designated person” if the employee has no spouse.

Employers could choose to provide more paid sick leave than the law would require.

In many ways, this bill is unfathomably broad. But it would not be shocking if New York enacted a more restrained paid sick leave law this year.

A07466 / S02261 – Abusive Work Environment

This bill is an attempt at anti-bullying legislation. It provides that “no employee shall be subjected to an abusive work environment.” Employers would be liable when they or their employees create such conditions in the workplace.

With a broad definition of “abusive work environment,” this bill aims to create protections on top of workplace harassment laws. Essentially, this law would eliminate the requirement that the negative treatment be based on a legally protected personal characteristic. The following could qualify as abusive conduct regardless of the underlying basis:

  • repeated verbal abuse, such as the use of derogatory remarks, insults, and epithets;
  • verbal, nonverbal, or physical conduct of a threatening, intimidating, or humiliating nature; or
  • sabotage or undermining of an employee’s work performance.

While none of these behaviors is pleasant or generally desirable, imposing employer liability on these bases would open floodgates of employment litigation. Still, it wouldn’t be a shocking development for New York in 2020.

The Sponsor’s Memo says, “This legislation will provide legal redress for employees who have been harmed, psychologically, physically, or economically. It will also provide legal incentives for employers to prevent and respond to mistreatment of employees at work.”

On the other hand, it would also provide legal incentives for employers to avoid operating in New York.

A02448 / S01132 – “Schedules That Work Act”

New York City already has a local “Fair Workweek Act” that regulates the scheduling of fast food and retail employees. New York State started down the path of imposing similarly-intended regulations over the past two years. But that effort stalled out of fear that it would have exceeded the Department of Labor’s regulatory authority. However, the State indicated at the time that it might continue the effort through legislation.

The proposed “Schedules That Work Act” would apply to employers with at least 50 employees in New York State. As currently drafted, it would only apply to the retail, food service, and cleaning industries.

This legislation would impose new restrictions on covered employers’ ability to schedule employees. It includes specific parameters regarding call-in pay, split shifts, and advance notice of work schedules.

The Sponsor’s Memo claims:

“This bill would promote more communication between employee and employer regarding expectations for work and require the employer to give more reasonable notice to the employee of changes in their work schedule. A more predictable schedule would result in a more focused employee who has been ensured their responsibilities outside of work have been taken care of. Additionally, giving hourly employees a voice at work would likely decrease worker turnover rates. In this way, this bill would benefit both the employee and the employer.”

Other similar bills are pending, such as A00315 / S03346.

A04714 / S05044 – Personnel Files

Currently, New York law does not require employers to provide employees access to review their personnel files. This bill would change that.

As proposed, this legislation would require employers to:

  • Give current employees and former, upon request, a free copy of their personnel file each year; and
  • Allow former employees (or their attorneys or union representatives) to review and copy the employee’s personnel file.

Several other states already have similar statutory provisions.

The Sponsor’s Memo filed with the bill asserts that:

“In the event of an unscrupulous employer or supervisor taking advantage of their position of power this legislation is very useful in giving the employee the opportunity to defend their name and their work ethic if need be.”

A03863 – Expanded Whistleblower Protection

New York’s Labor Law already provides whistleblower protections for employees who report violations of statutes and government regulations by their employers. This bill would amend the existing law to include reporting of “improper business activities.”

Under the bill, “improper business activities” would include violations of any “internal rule promulgated by the employer pursuant to any statute or ordinance” and “any judicial or administrative decision, ruling or order.”

The amended whistleblower protection would also more broadly apply when the employee “in good faith reasonably believes that an improper business activity has occurred or will occur, based on information that the employee in good faith reasonably believes to be true.”

This amendment would no longer require employees to bring the misconduct in question to the attention of their employer before reporting it to an outside source.

Notably, the bill would also create a new requirement that employers post a notice of these protections in the workplace. It also increases penalties for violations by employers and eliminates employers’ opportunity to recover attorneys fees for claims made without a reasonable basis.

The Sponsor’s Memo contends that:

“Currently, the whistle blower protections afforded under these statutes is [sic] overly narrow in scope, merely protecting employees who are reporting employer misconduct that threatens the general public health and safety. The corporate scandals that rocked the business community in the early part of this decade demonstrate the vital need for broad whistle blower protections. The narrow scope of these statutes deprives them of any true meaning or effect. As a result, this much needed legislation finally offers adequate protection to those brave employees who refuse to sacrifice their own integrity in the face of employer intimidation.”

A similar bill is pending as S03683.

Employer Concerns with Proposed New York Employment Legislation

As already suggested in some places above, New York employers have valid reasons to resist much of this legislation. It is unlikely that all of these bills will become law in their current form. However, any of these topics could produce new legal obligations as soon as 2020.

You should consider whether any of these measures would unduly burden your business. If so, it’s not too soon to start tracking this New York employment legislation and seeking to prevent or modify it.

Whether through one of these bills or other measures, employers should expect New York to continue to impose new employee protections this year. It is critical to be aware of any new laws and prepare for compliance as soon as possible.

To receive updates on New York employment legislation developments, sign up for our email newsletter and follow us on LinkedIn.

2019 Sexual Harassment EEOC Charge Statistics

2019 Sexual Harassment Charges Down at EEOC

On January 24, 2020, the U.S. Equal Employment Opportunity Commission disclosed its 2019 sexual harassment statistics. After a significant increase in sexual harassment charges in FY 2018, the EEOC reports a 1.2% decrease last year. Despite the year-over-year drop, 2019 still had the second-highest number of sexual harassment charges since 2012.

2018 Sexual Harassment Statistics

In Fiscal Year 2018, the EEOC received a total of 7,609 charges alleging harassment of a sexual nature. That represented more than a 13% increase in sexual harassment charges versus FY 2017. It was the first time the number of sexual harassment charges filed with the EEOC had increased in more than a decade.

FY 2019 EEOC Data

For the fiscal year ending September 30, 2019, the EEOC received 7,514 sexual harassment charges. This number represents 10.3% of all charges the agency received between October 2018 and September 2019.

The full break down of cases by nature of allegation follows:

  • Retaliation: 39,110 (53.8% of all charges filed)
  • Disability: 24,238 (33.4%)
  • Race: 23,976 (33.0%)
  • Sex: 23,532 (32.4%)
  • Age: 15,573 (21.4%)
  • National Origin: 7,009 (9.6%)
  • Color: 3,415 (4.7%)
  • Religion: 2,725 (3.7%)
  • Equal Pay Act: 1,117 (1.5%)
  • Genetic Information: 209 (0.3%)

(Total exceeds 100% because some charges allege multiple bases.)

Big Picture

It’s hard to tell whether the 2019 sexual harassment data indicate that the 2018 spike was an aberration. Another increase last year would not have been surprising, but a 1% drop after a 13% increase doesn’t suggest that sexual harassment is no longer a concern in U.S. workplaces. There were still many more sexual harassment charges filed with the EEOC in FY 2019 than in the five years preceding the launch of the #MeToo movement.

EEOC Sexual Harassment Charges

2019 Sexual Harassment Charges EEOC Chart
Fiscal Year Data as Reported by U.S. Equal Employment Opportunity Commission

Full EEOC charge-filing statistics are available here.

State-Level Claims

Many states have their own employment discrimination statutes and state agencies who process sexual harassment complaints. Many of these state (and some local) agencies have worksharing agreements with the EEOC. Such agencies, known as Fair Employment Practices Agencies (FEPAs), typically cross-file complaints with the EEOC.

The EEOC reports annual data on total sexual harassment charges, including those filed directly with FEPAs. However, this data may not encompass all state and local sexual harassment complaints. Some cases do not get timely registered with the EEOC or may be encoded differently at the state and federal level, for example.

The EEOC reports a total of 11,283 sexual harassment charges in FY 2019, combining cases filed with the EEOC directly and those reported from FEPAs. Or only a half-of-a-percent decrease from FY 2018.

EEOC & FEPA Sexual Harassment Charges

2019 Sexual Harassment Charges FEPA
Fiscal Year Data as Reported by U.S. Equal Employment Opportunity Commission

An Ongoing Concern

With or without these statistics, it’s clear that workplace sexual harassment remains a problem and an area of focus for regulators. Many states are reviewing their sexual harassment laws and requirements regarding initiatives like policies and training. New York, for example, dramatically relaxed the burden of proof on employees in all workplace harassment cases through 2019 legislation (after imposing mandatory annual sexual harassment training for all employees the year before). The EEOC reports a 5.3% increase in sexual harassment complaints in New York in FY 2019 (including FEPA data).

No one wants their business to become part of these statistics. However, policies and training sessions can be only part of the solution. Employers must respond promptly and thoroughly to all allegations of harassment in the workplace. This includes addressing problematic behavior that has not reached the level of a formal complaint. Waiting to see if a situation gets is destined to be a failed strategy.