Embarking on an expansion journey to New York presents lucrative prospects, but success hinges on a strategic approach to hiring and ongoing compliance management. As a worldwide hub of professionals, New York is full of potential resources and advantages for companies. However, companies looking to make the most of this state, particularly managers and HR managers, should understand that the nuances of hiring in New York are paramount to ensure a safe and effective transition.
In order to help you consider your options in the best possible way, this guide provides a comprehensive overview of what you need to know when expanding and hiring in New York. Expansion can complex, so we offer insights and actionable steps to navigate the complex landscape of New York employment in 2024.
New York Legal Codes Relating to Employment
Like in many US states, the legal system surrounding labor in New York is a mix of state laws and federal laws. New York has a robust legal framework of state laws governing employment practices. The New York Labor Law and the New York Human Rights Law form the basis of the system used to ensure fair treatment and prevent discrimination in the workplace. A full list of New York Labor Law articles can be found here.
It’s always a good idea to familiarize yourself with these statutes before expanding to New York to navigate the legal landscape effectively. Errors in this area can lead to serious problems or penalties. For instance, when hiring in New York, Human Rights Law prohibits discrimination based on various characteristics, such as race, gender, and disability. Those who are found to be not obeying these rules can be made subject to fines or restrictions on trading.
New York Recruitment & Hiring
Successfully hiring in New York means being aware of and adhering to equal employment opportunity (EEO) principles. The state requires that the process of hiring in New York should be free from bias or discrimination and done in the most transparent manner possible.
Because of the complex relationship between city and state, it’s also essential to be aware of city-specific regulations. For example, New York City’s Fair Chance Act restricts the timing of criminal background checks during hiring to after a job has already been offered. While background checks may be an essential part of a company’s hiring process, when considering an expansion to New York, it may be necessary to adjust internal processes like this to comply with local regulations.
Wage and Hour Laws in New York
Navigating New York’s wage and hour laws is crucial to maintaining legal compliance and operating as efficiently as possible.
Currently, New York as a whole uses separate minimum wages, depending on the location. In 2024, the minimum hourly wage in New York City, Westchester, and Long Island will be $16. For the rest of New York State, the minimum wage will remain at $15.
Workplace Health and Safety in New York
Creating a safe work environment means aligning your practices with the New York Safety and Health Division of the Worker Protection Bureau. However, additional safety standards and industry-specific safety regulations may apply, so always adjust your safety protocols accordingly. Private company employees are also covered by federal OSHA regulations.
Many companies in New York offer regular training sessions to employees in order to avoid potential safety issues. The New York Department of Labor also offers support to employers to help improve workplace safety.
Employee Leave and Benefits in New York
Understanding and implementing New York State Paid Family Leave (PFL) is essential. In 2024, eligible employees can take up to 12 weeks of job-protected, paid time off to take care of or bond with their children. Additionally, offering competitive benefits such as additional paid time off, health insurance, and retirement plans enhances your appeal as an employer.
New York State requires employers to enroll in mandatory insurance programs for workers’ compensation, short-term disability, and paid family leave insurance benefits.
Tax and Social Security in New York
Federal income taxes and other required deductions from an employee’s salary are complicated in the US, with New York being no exception. Understanding the web of requirements that employers must manage can be tough, but registering with the New York State Department of Taxation and Finance is an essential step for employers when hiring in New York.
Employees in New York must pay federal, state, and (possibly) local income taxes. The exact amounts depend on the location and income level of the employee. However, New York State income tax brackets range from 4-10.9%. There may also be additional surcharges required in some areas.
Employers are expected to withhold income tax from an employee’s salary as part of the payroll process.
Additionally, employers are required to withhold and manage FICA contributions as part of the regular payroll process.
Amounts that employers have to pay include:
– Social Security and Medicare (6.2%)
– Unemployment Insurance (2.1-9.9%, based on how long the company has been running, among other things)
– The Re-Employment Service Fund (0.075%)
In addition to making their own contributions, companies must also make deductions for their employees, including 0.5% for the State Disability Insurance Tax and 0.04555% for the Paid Family Leave Tax.
What You Need to Know about Employee Termination in New York
An unfortunate reality of expanding your business or hiring in New York is that you may have to deal with employee termination at some point. Meanwhile, New York is an at-will employment state, meaning that terminating an employment contract is possible at any time as long as the reason for doing so is legal. However, ending a contract either as an employer or employee in New York still demands adherence to specific regulations.
That’s why it’s best to familiarize yourself with the state’s laws on employee termination to ensure you aren’t going to have legal problems going forward.
Employers are prohibited from terminating employees based on the following:
– protected characteristics such as race, color, national origin, sex, religion, age, disability, or sexual orientation
– engaging in protected activities, such as filing a discrimination complaint, reporting workplace safety violations, or participating in a legal investigation
New York also practices its own version of the WARN (Worker Adjustment and Retraining Notification) Act, which requires employers to provide advance notice in the event of mass layoffs.
When terminating an employee’s contract, employers must provide all the information that the employee requires in order to apply for unemployment benefits or other benefits.
Finally, severance pay is generally not required unless it has been offered as part of the contract, but the employee’s last payment must be provided on the next standard payday.
Master Compliance, Payroll, and Hiring in New York with INS Global’s Professional Employment Outsourcing Solution
It takes knowledge and commitment to navigate New York’s complex labyrinth of employment rules. Working with an Employer of Record (EOR) in New York, like INS Global, is quicker and easier, regardless of whether you’re working in another state or country.
With the aid of an Employer of Record, you can start hiring in New York and doing business without the requirement for a new corporate entity, navigate regulatory hoops, and hire and manage staff legally in a fraction of the time it normally takes. This is because an EOR in New York can handle all necessary HR tasks on your behalf and become your employees’ legal employer.
INS Global can provide the expert support that comes from more than 15 years of experience to help simplify and streamline your expansion into New York. Our global expansion advisors and payroll outsourcing solutions can ensure legal compliance, expedite the process of hiring in New York, and concentrate on what really matters—the expansion and success of your company.
Speak with our team of knowledgeable consultants today to learn how to quickly and safely establish a successful presence in New York.
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