New York City Mayor Considers New Legislation Allowing Civil Lawsuits for Violations of Paid Sick Leave
New York City Mayor Eric Adams has until January 19, 2024, to decide on a new piece of legislation that could significantly impact employers’ obligations regarding paid sick leave. If approved, the legislation would allow eligible employees to file a civil lawsuit against their employers for violations of the Earned Safe and Sick Time Act (ESSTA), in addition to filing a complaint with the Department of Consumer and Worker Protection (DCWP). The legislation aims to give employees more legal avenues to seek recourse if they believe their rights under ESSTA have been violated.
Under the current version of ESSTA, employees can only file a complaint with the DCWP if they believe their employers have violated the act. However, the proposed legislation, passed by the New York City Council on December 20, 2023, would grant employees the right to file a civil action within two years of becoming aware of the alleged violation, without the prerequisite of filing a complaint with the DCWP first. This new provision would not affect the DCWP’s authority to initiate investigations.
The legislation also expands the potential penalties that employers may face. If a civil action is initiated, employers could be subject to compensatory damages, injunctive and declaratory relief, attorney fees, and any other relief deemed appropriate by the court. Compensatory damages under the proposed private right of action would include certain forms of relief available during a DCWP investigation.
Furthermore, the legislation broadens the scope of civil penalties that may be imposed on employers facing a DCWP investigation. Currently, ESSTA enables the imposition of civil penalties ranging from $500 to $1,000 per employee. The new legislation would allow these penalties to be imposed on a per employee, per instance basis.
The proposed amendments to ESSTA intend to enhance employees’ rights and ensure employers are held accountable for any violations. However, employers are understandably concerned about the potential legal and financial implications of the new legislation. Some worry that the expansion of penalties and the inclusion of a private right of action may lead to an increase in lawsuits against employers.
Mayor Adams has until January 19, 2024, to either sign, veto, or take no action on the legislation. If he does not veto the bill by that date, it will become law and go into effect within 60 days, no later than March 19, 2024.
As the deadline approaches, employers, employees, and legal experts are closely monitoring the situation. The outcome of this legislation could have significant implications for the paid sick leave landscape in New York City. Employers are advised to stay informed and ensure compliance with existing ESSTA provisions while considering the potential impact of the proposed amendments.
Please note that all information is subject to change pending Mayor Adams’ decision on the legislation. Updates and further developments will be reported as they arise.
