On September 14, 2023, New York Governor Kathy Hochul signed amendments to Section 590 of the New York Labor Law. That statute will now require employers to provide specific notifications to employees regarding their potential eligibility for unemployment benefits. While the new unemployment notice requirements aim to enhance transparency for employees, they also underscore the importance for businesses to stay updated and adapt to the evolving regulatory landscape to avoid violations and penalties through the Unemployment Insurance process.
What’s New?
Beginning November 13, 2023, the law will require every employer who is obligated to contribute to the unemployment insurance system to notify their employees about their right to apply for unemployment benefits, when applicable.
Although New York employers have already been expected to provide employees with a Record of Employment upon separation, the law will now require notification in more situations that don’t necessarily involve termination of employment.
When Is the Unemployment Notice Required?
Employers must provide this unemployment notice:
- At the time of each permanent or indefinite separation from employment.
- During a reduction in hours.
- During a temporary separation.
- For any other interruption of continued employment resulting in total or partial unemployment.
Unfortunately, the above terms are not specifically defined in the amended statute.
What Should the Unemployment Notice Include?
The required notice must be in writing and should be on a form either furnished or approved by the New York Department of Labor.
The notice must contain:
- Employer’s Details: This includes the employer’s name and registration number.
- Address for Communication: The notice should specify the address of the employer to which any request for remuneration and employment information regarding the employee should be directed.
- Additional Information: Any other information as required by the Department of Labor should also be included.
The DOL has updated the Record of Notice form in response to this law. It is available here. Unfortunately, to date, the DOL has not provided further clarification of the circumstances where notice must be provided short of permanent employment separation.
Implications for Employers
This new unemployment notice provision emphasizes the state’s commitment to ensuring that employees are well-informed about their rights. For employers, it means:
- Being Proactive: Employers should be ready with the required forms and processes in place by November 13, 2023.
- Training HR Teams: HR teams should be trained to understand the nuances of the new unemployment notice provision and ensure compliance.
- Avoiding Penalties: Non-compliance could lead to negative consequences regarding unemployment claims. It’s crucial for employers to adhere to these new unemployment notice requirements diligently.
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