Hiring New Employees in New York: Legal Guidelines for Employers
Hiring employees in New York requires compliance with specific state laws that go beyond federal requirements. New York employers must navigate distinctive wage and hour laws, paid family leave provisions, anti-discrimination protections, and specific documentation requirements that are more comprehensive than many other states.
New York has some of the most employee-friendly laws in the nation, with strict penalties for non-compliance. Employers should establish proper hiring procedures before bringing on new staff to avoid potential legal issues and financial penalties.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Employee Handbook
A comprehensive document outlining company policies, procedures, work rules, benefits, and expectations. Provides important information to new employees and serves as a reference for all staff.
Employment Application Form
A standardized form for collecting information from job applicants including work history, education, skills, and references. This helps employers make informed hiring decisions and serves as documentation of the hiring process.
Employment Contract
A comprehensive legal agreement between employer and employee detailing all terms and conditions of employment including duties, compensation, benefits, termination procedures, and confidentiality requirements.
Employment Offer Letter
A formal document outlining the terms of employment including position, salary, benefits, start date, and other conditions. This establishes clear expectations and serves as evidence of the employment agreement.
Non-Compete Agreement
A contract that restricts an employee from working for competitors or starting a competing business for a specified period after employment ends. Enforceability varies significantly by state.
Non-Disclosure Agreement
Protects your confidential information, trade secrets, and intellectual property that you may need to share with the manufacturer during the course of your relationship. This should be signed before detailed discussions begin.
Relevant Laws
New York State Human Rights Law
Prohibits employment discrimination based on age, race, creed, color, national origin, sexual orientation, gender identity or expression, military status, sex, disability, predisposing genetic characteristics, familial status, marital status, or domestic violence victim status. Employers must ensure their hiring practices comply with these anti-discrimination provisions.
New York Labor Law § 195 - Wage Notice Requirements
Requires employers to provide new hires with written notice of their rate of pay, regular pay day, and other information about compensation. This notice must be provided at the time of hiring, and the employee must sign an acknowledgment of receipt.
New York City Fair Chance Act
For employers in NYC, this law restricts when employers can ask about criminal history during the hiring process. Employers generally cannot inquire about criminal history until after extending a conditional offer of employment, and must follow specific procedures if they want to withdraw an offer based on criminal history.
New York State Paid Sick Leave Law
Employers must provide sick leave to employees, with the amount depending on employer size. New hires begin accruing sick leave immediately upon employment, though employers may restrict use until after 120 days of employment.
New York Employment Eligibility Verification (I-9) Requirements
In accordance with federal law, employers must verify the identity and employment authorization of each person hired by completing Form I-9 within three business days of the date of hire.
New York State Worker's Compensation Insurance
Employers must maintain workers' compensation insurance coverage for all employees, including new hires. This insurance provides benefits to workers who are injured or become ill as a direct result of their job.
Regional Variances
New York City
New York City has additional employment requirements beyond state law. Employers must comply with the NYC Fair Chance Act (restricting when criminal background checks can be conducted), NYC Paid Safe and Sick Leave Law (more generous than state requirements), and NYC salary transparency laws requiring job postings to list salary ranges. NYC also has a higher minimum wage than the rest of the state and stricter anti-discrimination protections under the NYC Human Rights Law.
Westchester County
Westchester County has its own Safe Time Leave Law requiring employers to provide up to 40 hours of paid leave for employees who are victims of domestic violence or human trafficking. The county also has a Ban the Box law (Safe Hiring law) that prohibits employers from asking about criminal history on initial job applications.
Suffolk County
Suffolk County has enacted the Restrict Information Regarding Salary and Earnings (RISE) Act, which prohibits employers from inquiring about salary history during the hiring process. The county also has its own Human Rights Law that may provide additional protections beyond state law.
Albany County
Albany County has a Local Hiring Law that requires certain employers with county contracts to make good faith efforts to hire county residents. The county also has its own Human Rights Law that may provide additional protections in employment.
Suggested Compliance Checklist
Prepare job description and posting
1 days after startingCreate a clear job description that complies with New York employment laws. Ensure the posting doesn't contain discriminatory language and includes essential job functions. New York City employers must include salary ranges in job postings under the NYC Pay Transparency Law.
Create Employment Application Form
3 days after startingDevelop an application form that complies with New York laws. Remember that in New York, employers cannot ask about salary history, criminal history on initial applications (under 'Ban the Box' laws in NYC), or include questions that could be discriminatory based on protected characteristics.
Conduct interviews and select candidate
14 days after startingWhen interviewing, avoid questions about protected characteristics (age, race, religion, disability, etc.). In New York City, employers must follow the Fair Chance Act which restricts when and how criminal background information can be considered.
Prepare Employment Offer Letter
16 days after startingDraft an offer letter that includes position details, compensation, start date, and employment conditions. In New York, clearly state if employment is at-will. If the position is in NYC, ensure compliance with the Earned Safe and Sick Time Act by mentioning sick leave policies.
Draft Employment Contract
18 days after startingIf using a formal employment contract beyond an offer letter, ensure it complies with New York labor laws. Include details about compensation, benefits, duties, termination conditions, and any restrictive covenants. Note that New York has specific requirements for enforceable non-compete and non-solicitation provisions.
Prepare Non-Disclosure Agreement
19 days after startingCreate an NDA that protects company confidential information. In New York, NDAs must be reasonable in scope and duration to be enforceable. Note that New York law limits the use of NDAs in sexual harassment settlements and claims.
Prepare Non-Compete Agreement
20 days after startingIf applicable, draft a non-compete that complies with New York law. Non-competes in New York must be reasonable in geographic scope, duration, and business interest protected. Be aware that New York courts generally disfavor non-competes and scrutinize them carefully, especially for lower-wage workers.
Conduct background check
21 days after startingObtain written authorization before conducting background checks. In New York City, employers must follow the Fair Chance Act which requires a conditional offer before criminal background checks and a specific process if adverse action is taken based on criminal history.
Prepare Background Check Authorization Form
22 days after startingCreate a form that complies with the Fair Credit Reporting Act (FCRA) and New York law. In NYC, this should be provided after a conditional offer of employment. The form must clearly disclose that a background check will be conducted and obtain the applicant's authorization.
Complete Form I-9 Employment Eligibility Verification
25 days after startingFederal law requires completion of Form I-9 within 3 business days of the employee's first day of work. The employee must complete Section 1 on or before their first day, and the employer must complete Section 2 within 3 business days after the employee begins work.
Complete Form W-4 Employee's Withholding Certificate
25 days after startingHave the employee complete the federal W-4 form to determine federal income tax withholding. This must be completed before the first payroll processing.
Complete State Tax Withholding Form (IT-2104)
25 days after startingHave the employee complete New York's IT-2104 form for state income tax withholding. This form determines the amount of New York State, New York City, and Yonkers taxes to withhold from the employee's pay.
Set up Direct Deposit Authorization
26 days after startingIf the employee wants direct deposit, have them complete an authorization form. In New York, employers cannot require direct deposit for most employees; it must be voluntary unless the employee is in an executive, administrative, or professional capacity earning over $900 per week.
File New Hire Reporting Form
27 days after startingNew York employers must report all newly hired employees to the New York State Department of Taxation and Finance within 20 days of their hire date. This can be done online through the NY New Hire Online Reporting Center.
Provide required notices to new employee
28 days after startingNew York requires several notices be provided to new employees, including: Wage Theft Prevention Act notice (within 10 days of hire), notice of pay rate and payday, unemployment insurance information, workers' compensation information, and NY Paid Family Leave information.
Collect Emergency Contact Information
29 days after startingHave the employee provide emergency contact information. While not legally required, this is a best practice for workplace safety and emergency situations.
Enroll employee in benefits programs
30 days after startingIf applicable, provide information about and enroll the employee in company benefit programs such as health insurance, retirement plans, etc. Under New York law, employers must provide disability benefits insurance and Paid Family Leave coverage.
Provide Employee Handbook
31 days after startingGive the employee a copy of the company handbook and obtain signed acknowledgment. The handbook should include policies on harassment, discrimination, paid sick leave (required in NYC and statewide), and other workplace policies that comply with New York and federal laws.
Display required workplace posters
32 days after startingEnsure all required federal and New York State workplace posters are displayed in a prominent location. These include minimum wage information, workplace safety (OSHA), employee rights, paid family leave, and anti-discrimination notices.
Schedule sexual harassment prevention training
45 days after startingNew York State law requires all employers to provide sexual harassment prevention training to all employees annually. New employees should receive this training as soon as possible after hiring.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Prepare job description and posting | Create a clear job description that complies with New York employment laws. Ensure the posting doesn't contain discriminatory language and includes essential job functions. New York City employers must include salary ranges in job postings under the NYC Pay Transparency Law. | - | 1 |
| Create Employment Application Form | Develop an application form that complies with New York laws. Remember that in New York, employers cannot ask about salary history, criminal history on initial applications (under 'Ban the Box' laws in NYC), or include questions that could be discriminatory based on protected characteristics. | Employment Application Form | 3 |
| Conduct interviews and select candidate | When interviewing, avoid questions about protected characteristics (age, race, religion, disability, etc.). In New York City, employers must follow the Fair Chance Act which restricts when and how criminal background information can be considered. | - | 14 |
| Prepare Employment Offer Letter | Draft an offer letter that includes position details, compensation, start date, and employment conditions. In New York, clearly state if employment is at-will. If the position is in NYC, ensure compliance with the Earned Safe and Sick Time Act by mentioning sick leave policies. | Employment Offer Letter | 16 |
| Draft Employment Contract | If using a formal employment contract beyond an offer letter, ensure it complies with New York labor laws. Include details about compensation, benefits, duties, termination conditions, and any restrictive covenants. Note that New York has specific requirements for enforceable non-compete and non-solicitation provisions. | Employment Contract | 18 |
| Prepare Non-Disclosure Agreement | Create an NDA that protects company confidential information. In New York, NDAs must be reasonable in scope and duration to be enforceable. Note that New York law limits the use of NDAs in sexual harassment settlements and claims. | Non-Disclosure Agreement | 19 |
| Prepare Non-Compete Agreement | If applicable, draft a non-compete that complies with New York law. Non-competes in New York must be reasonable in geographic scope, duration, and business interest protected. Be aware that New York courts generally disfavor non-competes and scrutinize them carefully, especially for lower-wage workers. | Non-Compete Agreement | 20 |
| Conduct background check | Obtain written authorization before conducting background checks. In New York City, employers must follow the Fair Chance Act which requires a conditional offer before criminal background checks and a specific process if adverse action is taken based on criminal history. | - | 21 |
| Prepare Background Check Authorization Form | Create a form that complies with the Fair Credit Reporting Act (FCRA) and New York law. In NYC, this should be provided after a conditional offer of employment. The form must clearly disclose that a background check will be conducted and obtain the applicant's authorization. | Background Check Authorization Form | 22 |
| Complete Form I-9 Employment Eligibility Verification | Federal law requires completion of Form I-9 within 3 business days of the employee's first day of work. The employee must complete Section 1 on or before their first day, and the employer must complete Section 2 within 3 business days after the employee begins work. | Form I-9 Employment Eligibility Verification | 25 |
| Complete Form W-4 Employee's Withholding Certificate | Have the employee complete the federal W-4 form to determine federal income tax withholding. This must be completed before the first payroll processing. | Form W-4 Employee's Withholding Certificate | 25 |
| Complete State Tax Withholding Form (IT-2104) | Have the employee complete New York's IT-2104 form for state income tax withholding. This form determines the amount of New York State, New York City, and Yonkers taxes to withhold from the employee's pay. | State Tax Withholding Form | 25 |
| Set up Direct Deposit Authorization | If the employee wants direct deposit, have them complete an authorization form. In New York, employers cannot require direct deposit for most employees; it must be voluntary unless the employee is in an executive, administrative, or professional capacity earning over $900 per week. | Direct Deposit Authorization Form | 26 |
| File New Hire Reporting Form | New York employers must report all newly hired employees to the New York State Department of Taxation and Finance within 20 days of their hire date. This can be done online through the NY New Hire Online Reporting Center. | New Hire Reporting Form | 27 |
| Provide required notices to new employee | New York requires several notices be provided to new employees, including: Wage Theft Prevention Act notice (within 10 days of hire), notice of pay rate and payday, unemployment insurance information, workers' compensation information, and NY Paid Family Leave information. | - | 28 |
| Collect Emergency Contact Information | Have the employee provide emergency contact information. While not legally required, this is a best practice for workplace safety and emergency situations. | Emergency Contact Information Form | 29 |
| Enroll employee in benefits programs | If applicable, provide information about and enroll the employee in company benefit programs such as health insurance, retirement plans, etc. Under New York law, employers must provide disability benefits insurance and Paid Family Leave coverage. | Benefits Enrollment Forms | 30 |
| Provide Employee Handbook | Give the employee a copy of the company handbook and obtain signed acknowledgment. The handbook should include policies on harassment, discrimination, paid sick leave (required in NYC and statewide), and other workplace policies that comply with New York and federal laws. | Employee Handbook | 31 |
| Display required workplace posters | Ensure all required federal and New York State workplace posters are displayed in a prominent location. These include minimum wage information, workplace safety (OSHA), employee rights, paid family leave, and anti-discrimination notices. | - | 32 |
| Schedule sexual harassment prevention training | New York State law requires all employers to provide sexual harassment prevention training to all employees annually. New employees should receive this training as soon as possible after hiring. | - | 45 |
Frequently Asked Questions
As of December 31, 2023, the minimum wage in New York State is $15.00 per hour for most employers. In New York City, Long Island, and Westchester County, the minimum wage is $16.00 per hour. The minimum wage is scheduled to increase annually based on inflation. Fast food workers and tipped employees may have different minimum wage requirements, so be sure to check the specific requirements for your industry.
While New York law doesn't explicitly require a written offer letter, it's highly recommended as a best practice. However, New York does require employers to provide new hires with a written notice of their pay rate, regular payday, and other wage information at the time of hiring. This is required under the New York Wage Theft Prevention Act.
New employees in New York must complete federal I-9 (employment eligibility verification) and W-4 (tax withholding) forms. New York State requires an IT-2104 form (state tax withholding). You must also report new hires to the New York State Department of Taxation and Finance within 20 days of their hire date. Additionally, employers must provide a wage notice form under the Wage Theft Prevention Act.
Yes, New York is generally an at-will employment state, meaning either the employer or employee can terminate the employment relationship at any time, with or without cause. However, there are important exceptions, including terminations that violate anti-discrimination laws, retaliation for protected activities, or terminations that violate an employment contract.
New York law requires employers to provide meal breaks to employees. For shifts of more than 6 hours that extend over the noon hour (11:00 a.m. to 2:00 p.m.), employees must receive at least 30 minutes for lunch. For shifts starting before 11:00 a.m. and continuing past 7:00 p.m., employees must receive an additional 20-minute meal break between 5:00 p.m. and 7:00 p.m. Factory workers are entitled to a 60-minute lunch break. New York does not require employers to provide shorter rest breaks.
New York follows the federal Fair Labor Standards Act (FLSA) for overtime requirements. Non-exempt employees must be paid 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. Some occupations are exempt from overtime requirements, including certain executive, administrative, and professional employees who meet specific salary and duty requirements.
Under New York State law, employers must provide paid sick leave to employees. The amount depends on employer size: employers with 4 or fewer employees and a net income of $1 million or less must provide up to 40 hours of unpaid sick leave; employers with 4 or fewer employees and a net income greater than $1 million must provide up to 40 hours of paid sick leave; employers with 5-99 employees must provide up to 40 hours of paid sick leave; and employers with 100+ employees must provide up to 56 hours of paid sick leave annually.
New York doesn't generally mandate background checks for all employees, but certain industries (like healthcare, education, and childcare) have specific requirements. New York City and several other localities have 'Ban the Box' laws that restrict when employers can ask about criminal history. Additionally, New York State prohibits employers from asking about salary history and has restrictions on credit checks through the New York Fair Credit Reporting Act.
While New York doesn't legally require employers to have an employee handbook, it's highly recommended. If you do create one, certain policies are strongly advised, including anti-harassment policies (required for all NY employers), paid sick leave policies, and paid family leave policies. New York City employers with 4+ employees must include their sexual harassment prevention policy and complaint procedure in their handbook.
New York has a Paid Family Leave (PFL) program that provides job-protected, paid time off for employees to bond with a new child, care for a family member with a serious health condition, or assist when a family member is deployed abroad on active military service. As of 2023, eligible employees can take up to 12 weeks of PFL at 67% of their average weekly wage, up to a cap. The program is funded through employee payroll deductions.