City Launches Investigation into Businesses with No Sick Days Under Mamdani
In a significant move under Mayor Zohran Mamdani, the Department of Consumer and Worker Protection (DCWP) is initiating new compliance checks for businesses concerning the city’s updated paid time off laws. Starting Friday, these checks will ensure that employers adhere to regulations regarding employee sick leave. If payroll records reveal that fewer than 50% of employees utilized any paid sick leave in the last year, the agency will mark that business for potential “systemic” violations.
Understanding the Compliance Checks
Elizabeth Wagoner, the DCWP policy director, explained that the compliance benchmark will differ by industry and size. This 50% threshold stems from analysis conducted by the U.S. Centers for Disease Control and Prevention (CDC), which indicated that around half of private sector employees with paid sick leave miss at least one workday annually due to illness, injury, or disability. The agency will also investigate violations spurred by worker complaints.
Background on Paid Time Off Law
- Approximately 3 million New Yorkers are protected under the revamped Protected Time Off Law.
- The law provides a minimum of 32 hours of unpaid time off yearly, alongside 40 hours of paid time off.
- Since 2014, New York has mandated time off for personal health emergencies.
Wagoner highlighted that the initiative aims to offer clarity to both judges and business owners. “If sick time usage rates fall below this benchmark, it highlights a compliance issue that needs addressing,” she stated. Many employers argue that low sick leave usage results from workers opting not to take advantage of their benefits. However, investigations revealed that unlawful obstacles often prevent employees from using their entitled sick time.
Barriers Facing Workers
Workers may lack adequate notification of their rights or may experience managerial discouragement in taking time off. Additionally, some are expected to find replacements for their shifts, practices that contravene the law.
Implementation of Self-Auditing Tools
The DCWP has been assessing paid time off compliance for roughly a year. As a result, they are introducing a new self-auditing tool that allows employers to determine their adherence to the law. This tool will help businesses navigate the guidelines and identify areas needing improvement. Importantly, the data collected will not be shared with the agency.
Experts have commended this approach, viewing it as a sensible step toward transparency. Terri Gerstein of the NYU Wagner Labor Initiative stated, “A company with fewer than half of its employees taking even one sick day likely indicates they aren’t availing themselves of sick leave.”
Consequences for Non-Compliance
For businesses that do not comply with these regulations, severe consequences await. Employers must compensate each affected employee at least $500 annually, in addition to an equal civil penalty. For instance, a non-compliant business with 100 employees could owe $300,000 after three years, half payable to employees and the rest as a penalty. Additional compensation may be available for retaliation cases.
This initiative emphasizes the need for clear guidelines, ultimately benefiting both employees and employers in New York City.
