New York Requires ERs to Disclose More Information to New Hires and Terminated EEs
Under Section 195 of the New York Labor Law, employers are required to notify employees, upon hire, of their rate of pay and their regular pay day. Effective October 26, 2009, all such notification must be in writing and include, for non-exempt employees, both their regular and their overtime rates of pay. Further, employees will be required to sign an acknowledgement of receipt of this information.
New York state law also requires that employers provide to terminated employees, within five days of their termination date, a letter specifying the exact termination date as well as the exact date of the termination of benefits. Failure to comply with this statute may result in fines, penalties, and you may be responsible for continuing payment of benefits beyond the normal termination date specified by Company policy.
All employers of commissioned sales people in New York State must have written commission agreements in place with all commissioned employees. The agreements must be signed by the employer and employee, be retained for three (3) years and contain information concerning the calculation methodology of wages, salary, draw on commissions and all other amounts earned and payable; the amount, duration and reconciliation provisions of draws and earned commissions, where the agreement provides for a recoverable draw; and dispute resolution procedures and details regarding payment of wages, salary, draw, commission and all other monies earned and payable upon termination of employment by either party. If the commissioned employee is an “at will” employee, an “at will” disclaimer should be included in the commission agreement.