In a move aimed at strengthening the rights of workers in the state, Governor Kathy Hochul recently signed a bill modifying Section 590 of the New York Labor Law. This amendment, effective from November 13, 2023, mandates that employers give their workers a formal notice of their entitlement 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, expands existing employer obligations regarding the issuance of a Record of Employment form. Previously, this form was required only when workers 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 resulting in "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. At the time of writing, the NYDOL has not yet released the official form that employers can use to comply with this new requirement.

While awaiting the official form, it is essential for employers to continue meeting their existing obligations by offering the Record of Employment form during standard offboarding procedures. Additionally, employers should carefully examine their separation documents to ensure compliance with the new requirement of informing separated workers 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 to uphold worker rights and foster a more equitable workplace.