NYC Earned Sick Time Act (modified)

 Overview of the NYC Earned Sick Time Act

Effective Day and Accrual:

Effective April 1^st 2014 all employers of 5 or more employees or an employer of 1 domestic worker must provide paid sick time. All other employers must provide unpaid sick leave of up to 40 hours. Part time workers are also covered. Business size will be determined by counting all workers in a business.

Workers will earn 1 hour of sick time for every 30 hours worked, up to 40 hours of sick time a calendar year.  An employee will be entitled to begin using sick time on the 120^th day of employment or on July 31^st 2014 whichever is later.

Eligible Use of Sick Leave:

Under the Act, sick time may be used for an employee’s own health needs or to care for a family member (child, spouse, partner, parent, sibling, grandchild or grandparent, or the child or parent of an employee’s spouse or partner).

Sick time may also be applied when there is a public health emergency.

Type of Paid Leave:

Any type of paid leave – paid time off, vacation, personal days, etc will count for purposes of complying with the law as long as they can be used for sick leave.

Employee Notice & Documentation:

An employer may require reasonable notice of planned use of sick time & may require an employee to provide notice of unforeseeable use of sick time as soon as practicable. A note signed by a licensed health care provider indicating the need for the sick time taken is considered reasonable. An employer may not demand documentation specifying the nature of the employee’s injury, illness or condition.

Employers may disciple employees who attempt to use sick time for improper absences.

The Department of Consumer Affairs is charged with enforcing the Act. Employers are required to retain records documenting their compliance with the act for three years. Employers of between 6 and 19 employees will have a grace period for violations until October 1^st, 2014.

This is modified from the original law that was passed only a few months ago

NYC Mandatory Sick time rules effective 1/1/14

• Beginning April 1, 2014, private sector workers in businesses with 20 or more employees will be
able to earn up to 40 hours of paid sick time a year. Private sector workers in smaller businesses
will receive job protection for up to 40 hours of unpaid sick time a year.
• Beginning October 1, 2015, the business size threshold for paid sick time will be lowered, and
workers in businesses with 15 or more employees will earn up to 40 hours of paid sick time a year.
Workers in smaller businesses will still receive job protection for 40 hours of unpaid sick time.
• Workers will earn one hour of sick time for every 30 hours worked.
• Business size will be determined by counting all workers in a business. In certain chain businesses
and franchises, all workers in the chain or franchise will be counted together in determining if the
business meets the size threshold for paid sick time.
• Paid or unpaid sick time can be used to care for a worker’s own health needs or to care for the
health needs of a worker’s spouse, domestic partner, child, parent, or the child or parent of a
worker’s spouse or domestic partner.
• Workers will begin earning sick time as soon as they are hired but will have to work for 120 days
before they are able to use the time.
• Part-time workers will be covered by the bill and earn paid sick time based on hours worked.
• Domestic workers will receive some paid sick time even if they work for a single employer.
• Any type of paid leave—paid time off, vacation, personal days, etc.—will count for purposes of
complying with the law as long as it can be used for sick leave purposes.
• Workers will be protected against retaliation. The law will be enforced by the Department of
Consumer Affairs, which will have the power to take complaints and assess fines and damages for
violations of the law. Complaints must be filed with the agency within 270 days.
• The bill will not cover independent contractors, work-study students, government employees, and
certain hourly occupational, speech, and physical therapists.
• Certain workers in the manufacturing sector are excluded from the paid sick time requirement, but
they will receive job protection for up to 40 hours of unpaid sick time.
• Collective bargaining agreements (CBAs) in the construction and grocery trades may opt covered
workers out of this law, and other CBAs may opt out if the CBA provides comparable benefits

New minimum wages

On 12/31/13 NYS' minimum wage goes to 8. per hour from 7.25
On 01/01/14 NJS'  minimum wage goes to 8.25 per hour from 7.25
Some more states that are raising up the minimum are RI to 8., CT to 8.70, VT 8.73, FL 7.93
AZ 7.90, MO 7.50, OH 7.95, MT 7.90, OR 9.10, WA 9.32 and CA 9.00

Social Security Wage Base Increases to $117,000. FOR 2014

Beginning 1/1/2014 the wage base for social security will be $117,000. up from $113700 in 2013.
The tax rate remains the same at 6.2%. Only about 6% of workers hit this threshold. Medicare remains 1.45% of all wages. Any wages in excess of $200,000. pay an additional 0.9%on all wages above the 200k.

Oct 1st Deadline

All employers must notify all employees in writing about the new marketplace (exchanges) that will open Oct 1st. There is 1 form if the employer offers insurance and another one if they don't offer insurance. Effective Oct 1st employee's will be able to go on-line and see what insurance policies are available in the marketplace.

Futa Tax Increase for 2012

States that have borrowed money from the federal government to pay their obligations in unemployment and have not yet repaid the money have caused the employers in their states to pay a surcharge. This surcharge was in effect last year for 22 states, this year it's in effect for only 18 states BUT the amount of the surcharge is much higher since it's the second year or even third year for some states. The tax is called Futa Credit reductions. States with an credit reduction of 0.3% (additional $21.00 per ee) include AZ, DE and VT. States with a 0.6% credit reduction i.e. for each employee who earned $7000. per year an additional $42.00 per employee will be owed in the following states, AK, CA, CT, FL, GA, KY, MO, NV, NJ, NY, NC, OH, RI,  and WI. Indiana will have to pay 0.9% since they haven't paid back in 4 years.

NYS MTA Commuter Tax declared unconstitutional

New York's Metropolitan Transportation Authority could lose $1.5 billion of revenue a year after a state court ruled on August 12th that a payroll tax was unconstitutional, partly because it applies to only 12 counties in the state. 

By limiting the tax to Nassau County, New York City, and the ring of suburban counties that lie north of the city, including Dutchess County, the legislature signaled that it was not "a substantial state concern" but instead a special law, Judge Bruce Cozzens, a state Supreme Court judge in Nassau County, said in his ruling.

The legislature was required to enact the law with a home-rule message or with a message of necessity, which requires two-thirds of the Senate and Assembly to approve the measure, Cozzens said. By failing to meet either condition, the legislature enacted the law unconstitutionally, he concluded.

NYS advises all employers to continuing paying this tax as they are appealing this ruling and noted that they have successfully defended the tax 4 other times.