New York Labor Law Update: Revisions to Unemployment Notice

In a move aimed at bolstering the rights of employees in the state, Governor Kathy Hochul recently signed a bill amending Section 590 of the New York Labor Law. This amendment, which takes effect on November 13, 2023, mandates that employers provide their employees with a formal notice of their right to file for unemployment benefits with the New York Department of Labor (NYDOL) upon separation from the company.

The revision, outlined in Assembly Bill (A) 00398A and Senate Bill (S) 04878A, builds upon existing employer obligations concerning the issuance of a Record of Employment form. Previously, this form was required only when employees quit, were laid off, or were discharged. However, the recent amendment broadens the scope of this obligation to include instances of a "reduction in hours" or any other situation leading to "total or partial unemployment."

Notably, this notice must be provided in writing on a form provided or approved by the NYDOL and must contain specific details, including the employer's name and registration number, the employer's address for further employment information requests, and any other information deemed necessary by the NYDOL commissioner. The NYDOL has not yet released the official form that employers can utilize to adhere to this new requirement.

While awaiting the official form, it is crucial for employers to continue fulfilling their existing obligations by offering the Record of Employment form during the standard offboarding procedures. Additionally, employers should thoroughly examine their separation documents to ensure compliance with the new requirement of informing separated employees about their eligibility to apply for unemployment benefits, effective as of November 13, 2023.

As the NYDOL is expected to release further guidelines and resources in the near future, employers are encouraged to stay updated and remain vigilant about adhering to the evolving regulations.