How to Terminate an Employee in New York State
Published: 07.16.2020 / Updated: 01.16.2024
Employee termination is the process of ending an employee’s contract or relationship with a company. Employers with New York employees are required to take specific steps when employees depart, regardless of whether the termination is voluntarily or involuntarily.It is important brokers and employer clients are aware of these requirements to maintain compliance. Below you will find an outline of some of these important employer requirements.
Required Notices When Terminating an Employee in New York
Notice Upon Separation – Notice and Record-keeping Requirements
Employers must provide a notice upon separation to all employees who depart from employment within five business days of actual termination. The notice must state the effective date of termination and the date when benefits will cease. From a practical standpoint, employers who initiate termination should consider providing the notice at the time of termination.New York State Labor Law §195(6)
Notice Upon Separation – Unemployment Insurance Availability
On April 4, 2020, the NYS Dept. of Labor published a bulletin reminding employers of its notice requirements. Regardless of whether the employee’s departure does not qualify for unemployment benefits, the form still must be provided. Employers may use Form IA 12.3 to satisfy this requirement.New York State Law 12 NYCCR §472.8
Wages
Final Paychecks
Final paychecks must be issued by the next regular payday.Commissions are included as wages; all commissions earned at the time of termination must be paid with all other wages. New York requires commission agreements to be in writing and must address how they will be paid when the employment relationship ends such when the commissions have not yet been earned at the time of termination.
New York State Law §191
Vacation Pay
Unless the employer maintains a written policy stating that vacation pay is forfeited upon termination, any accrued and unused paid vacation is required to be paid. Employers of New York employees should review their vacation policies and craft clear provisions specifying any vacation caps or forfeiture policies they wish to enforce.New York Labor Law §191
Closures and Layoffs
The New York State Worker Adjustment and Retraining Notification (WARN) Act requires businesses with 50 or more full-time employees in New York State to provide early warnings of closures and layoffs to all affected. Employers must provide at least 90 calendar days advanced notice prior to the following:- Plant closing
- Mass layoff
- Relocation
- Other covered reduction in work hours
For other details and information, visit the following resources:
- New York State, Department of Labor, Notice and Record-Keeping Requirements – §195(6)
- New York State, Department of Labor, Unemployment Insurance – 12 NYCCR §472.8
- New York State, Department of Labor, Unemployment Insurance Division, Form IA 12.3
- New York State, Department of Labor – §191 Frequency of Payments
- NYS Department of Labor: Bulletin – Immediate Action Required
