The New Year Brings Minimum Wage Increase and Sick Leave Benefits for New York Employees

Minimum Wage Increase

The New Year ushered in changes for New York workers. These changes include an increase in the minimum wage and new sick leave law. New York is one of several states that guarantee pay for workers recovering from an illness, caring for a sick family member, or seeking treatment for a variety of issues, including domestic violence or stalking. This is in addition to benefits offered by FMLA.

According to Governor Cuomo, there were approximately 1.3 million New York workers without paid sick leave before the law. About a quarter of all workers report termination or threats of termination for taking time off due to sickness.

The new law is especially pertinent amidst the COVID-19 pandemic. Lt. Governor Kathy Hochul explained that the state doesn’t want anyone choosing between being at work when they are ill or are caring for a sick loved one and not getting paid. She points out this is especially important during the pandemic, but should apply at all times.

Who Qualifies for Sick Time Benefits?

Now, due to the law, most unemployed people in New York can begin using sick days immediately, as long as they’ve accrued enough time to do so. The law allowed workers to begin accruing one hour for every 30 hours worked beginning this past September. Employees carry over all unused sick leave into the following year.

Larger companies are entitled to up to 56 hours of paid sick time under the new law. Companies with fewer than 100 employees must provide 40 hours of paid sick time per year. Smaller companies with fewer than four employees and limited net income must provide up to 40 hours of leave.

Minimum Wage Increases throughout New York

In addition to the implementation of mandatory sick time, the city also implemented minimum wage increases. The hourly minimum wage is now $14 per hour in Westchester and Long Island. The minimum wage throughout the rest of the state increased to $12.50. The increase is part of a plan to phase in a statewide $15 increase. New York City completed its phase-in in 2019. The next statewide increase is due by October 1st.

Most financial experts do not anticipate the increase harming the state’s recovery from the response to the COVID-19 pandemic. Unemployment rates in the state are down from their April 2020 peak and that trend is expected to continue as more people receive the vaccine and restrictions lift.

People also point out that before the pandemic, the state reached record-low unemployment rates amidst minimum wage increases.

The increase is good news for New York workers struggling with an unpredictable financial market and pandemic concerns. Although some people believe the increase comes at a bad time and could negatively affect the overall recovery, others say it’s another tool for helping New Yorkers get through a very difficult time.

If you have questions about the implementation of sick leave benefits or the increase in the minimum wage, or you are concerned that your employer is not providing you with the benefits or wages to which you are entitled, we can help. Contact Borrelli & Associates, P.L.L.C. to learn more.