Many of our organizations award employees based on length of service, safety-achievement, productivity goals, employee of the month, employee of the year, continuous improvement metrics, lean six sigma, spot bonuses, etc. What are the tax implications on these employer sponsored awards? Does this impact the employee’s end of the year W-2? How much can we give as an award without impact to taxes? Awarding employees for performance is a great idea, if we do this consistent and fairly. As employers, we need to ensure we follow the IRS guidelines on taxation as well.
Below are 6 requirements for employer related awards:
Employers can deduct a maximum amount for a single employee in a single tax year for both service and safety awards is $400 for an unqualified plan and $1,600 for a qualified plan.
A qualified plan will be established if it is written and if the average combined value of service and safety awards per employee in the given tax year does not exceed $400.
The awards must be defined as “tangible personal property.” Award certificates, cards or credits are not eligible unless they are redeemable only for tangible personal property.
Length of service awards are recognitions that many of our organizations award to employees that work for several years. They may be given tax-free to an employee only on a fifth anniversary and then only once every five years after that; ten, fifteen, twenty, etc. The five-year plan is standard for many organizations.
Safety-achievement awards may be given tax-free to no more than 10 percent of eligible employees in any one years.
Productivity awards are never eligible for tax benefits.
Many other restrictions can and do apply to tax implications related to employer related awards. These are federal IRS guidelines, ensure you review any state and local taxation requirements prior to developing a policy or giving an award. Safety awards, length of service, spot bonuses are great options for organizations. However, if we provide a gift card or award to an employee in March and then it shows up on their taxes at the end of the year, the positive momentum can end quick, if the employee was unaware of the added tax accountabilities during the taxation year. Communicate the tax implications upfront to ensure no confusion or negative feedback. Develop a policy and practice that is consistent throughout the organization. Seek guidance on other questions related to employer related awards, the tax laws can be confusing and complex.
In my 10 years conducting compliance audits, I find posting mistakes in almost every organization, regardless of size, location and type (government, for-profit, not-for-profit). Compliance audits are necessary to ensure compliance, postering requirements change throughout the year. Annual subscription will ensure compliance; I can help with an annual subscription for digital and posters!
Identify Required Posters: Create a comprehensive list of all federal, state, and local labor law posters required for each location. Utilize online resources, legal counsel, or labor law poster compliance services to ensure accuracy.Physical Inspection: Conduct a physical inspection of each workplace to verify that all required posters are displayed in conspicuous locations where employees can easily access and read them. Common locations include break rooms, employee entrances, and near-time clocks.Poster Content Review: Carefully examine each poster to ensure it is the most current version. Labor laws are subject to change, and outdated posters can lead to non-compliance. Check for revision dates or contact the relevant government agency to confirm the poster’s validity.Accessibility Assessment: Evaluate the accessibility of the posters for all employees, including those with disabilities. Ensure that posters are displayed at an appropriate height and are readable. Consider providing posters in multiple languages if a significant portion of the workforce speaks a language other than English.Documentation: Maintain detailed records of the audit, including the date of the audit, the locations inspected, the posters reviewed, and any identified deficiencies. This documentation will be valuable for demonstrating compliance and tracking progress in addressing any issues. Penalty ExamplesOccupational Safety and Health Act (OSHA): Up to a $16,550 maximum fine per violation.Employee Polygraph Protection Act (EPPA): Up to a $26,262 maximum fine per violation.Equal Employment Opportunity is the Law (EEOC): Up to $659 per violation.Family and Medical Leave Act (FMLA): Up to $216 per violation for employers with 50 or more employees. How to stay compliant
Display posters correctly: Post all required federal and state posters in a prominent and easily accessible location where employees can see them, such as a break room or time-clock area.
Keep them updated: Replace posters whenever there is a mandatory change in the law.
Provide for remote employees: If your employees work exclusively remotely, you may be able to provide digital copies. However, many federal statutes require both electronic and hard-copy postings, and you should not rely on electronic notices as a complete substitute unless all employees are remote and have easy access to the digital versions.
Check specific requirements: Pay attention to specific requirements, such as the OSHA poster having a minimum paper size of 8.5 by 14 inches.
NYS Requirements “In addition to the increasing number of posters employers are required to physically display, effective December 16, 2022, New York employers must now furnish all employees with digital copies of all required posters via email or by posting them on the employer’s website.
Section 201 of New York’s Labor Law requires employers to furnish employees with “copies or abstracts” of laws, rules, and orders, that are designated by the New York State Department of Labor (NYDOL) as affecting employees.
Traditionally, this obligation was satisfied by an employer posting the copies and abstracts “in a conspicuous place on each floor of the premises.” Indeed, the NYDOL’s guidance has previously indicated that furnishing required notices electronically only may not be sufficient for employers to satisfy their obligations under Section 201. The physical requirement piece of Section 201 has now been confirmed with the latest amendment.
On December 16, 2022, Governor Kathy Hochul signed into law an amendment to Section 201 that expanded the posting requirements. Employers must now:Furnish digital versions of all copies and abstracts required under New York law or the NYDOL’s regulations to all employees through either the employer’s website or by email;Furnish digital versions of all other documents required to be physically posted in the workplace pursuant to any state or federal law or regulation to all employees through either the employer’s website or by email; andProvide notice to employees that all physically posted notices are available electronically.The amendment language indicates that these new requirements do not substitute an employer’s obligations under New York or federal law to physically display postings in a conspicuous place in the workplace. Instead, the electronic furnishing of postings is an additional requirement for employers to satisfy.
Failure to comply with these new requirements can result in monetary fines. Additionally, non-compliance may be used as evidence to support other alleged workplace violations by an employer. (Fox Rothchild) As many of our organizations have been implementing and utilizing remote worker options, we cannot forget the requirements for labor and employment law posters. Local, State and Federal laws have different requirements and definitions for remote workers.
Broad Definition of Remote Workers:Works at homeDoes not report to a physical job siteIs an employeeOther Considerations:Independent Contractors: Organization is not requiredDigital Nomads: Organization is not requiredGig Workers: Depends on payrolling of the individualTemporary Workers: Depends on payrollingWorkers on site at customer’s office: If the customer’s office has posters, more than likely no, but you do want to work with the customer to ensure compliance.General Posting Requirements:VisibleConspicuous LocationReadableNot DefacedPost Where Employees Report to Work Each DayRemote Workers with Internet Access:Internal website linkConspicuously Displayed: Ensure it is easy to find on your intranet portal and not buried in folders.Ensure workers are aware of how to accessMake remote workers aware of their rightsCan send them their own set of postersElectronic posters = best practiceStill need paper posters at main office and other locationsEEOC: In most cases, electronic posting supplements physical posting but does not itself fulfill the employer’s basic obligation to physically post the required information in its workplaces.
The majority of the agencies, laws and regulations were written prior to the remote work became a popular model for organizations to implement. However, there are a few federal and state laws that have implemented electronic posting language.USERRA Notice: May be posted or distributed in other ways.FMLA Notice: May be distributed electronically if all other requirements are met.EEOC: employers are encouraged to post the electronic notice on their internal websites in a conspicuous locationColorado Paid Leave, Whistleblowing & PPE: Provide through electronic communication, or conspicuous posting in the web-based platformFFCRA: An employer may also directly mail the required notice to any employees who are not able to access information at the worksite, through email, or online.Pennsylvania Mandatory Requirements
The 15 Mandatory Federal Contractor Postings:“National Labor Relations Act (NLRA)Informs employees of their rights under the National Labor Relations Act to form, join, and support a union and to bargain collectively with their employerMust be posted in English and any language common to a significant portion of workers if they are not fluent in EnglishPosting requirement does not apply to contracts of less than $100,000Enforced by the U.S. Department of Labor – Office of Labor-Management Standards and Office of Federal Contract Compliance ProgramsThere has been some confusion recently on whether this is a required poster. The National Labor Relations Board previously required private employers to post a similar notice, but a recent case has put that requirement on hold until further notice. That decision has no impact on federal contractors who are still required to post this poster.Walsh-Healey Public Contracts Act/Service Contract ActNotifies employees of the minimum wage rate, overtime requirements and safety and health requirementsMust be posted by federal contractors and subcontractors with contracts in excess of $10,000 for the manufacturing or furnishing of materials, supplies, and equipment to the federal government or federal contractors who provide services to the federal government using service employees whose contract exceeds $2,500Enforced by the U.S. Department of Labor – Employment Standards Administration – Wage and Hour DivisionAmerican Recovery and Reinvestment Act (ARRA) Whistleblower RightsInforms employees of their whistleblower rights under the American Recovery and Reinvestment ActMust be posted by federal contractors who received funds under the ARRAEnforced by the Recovery Accountability and Transparency BoardDepartment of Defense (DOD) Fraud HotlineInforms employees of the Department of Defense Fraud Hotline number for reporting fraud, waste and abuseMust be posted by federal contractors who have contracts with the Department of Defense that exceed $5,000,000Enforced by the U.S. Department of DefenseDepartment of Defense (DOD) Whistleblower HotlineInforms employees of their whistleblower rightsMust be posted by federal contractors who have contracts with the Department of Defense that exceed $5,000,000Enforced by the U.S. Department of DefenseDepartment of Homeland Security (DHS) Fraud HotlineInforms employees of the Department of Homeland Security Hotline number for reporting suspected criminal violations, misconduct and wasteful activitiesMust be posted by federal contractors who have contracts with the Department of Defense that exceed $5,000,000 and if the DOD contract is funded, in whole or in part, by DHS disaster relief fundsEnforced by the U.S. Department of Homeland Security – Office of the Inspector GeneralNotice to Workers with Disabilities/Special Minimum WageInforms employees the conditions under which special minimum wages may be paidMust be posted by federal contractors who employ disabled employees paid at a special minimum wageEnforced by the U.S. Department of Labor – Employment Standards Administration – Wage and Hour DivisionE-VerifyNotifies applicant and employees of their rights under the E-Verify programMust be posted by federal contractors in English and Spanish and posted near entranceEnforced by the U.S. Department of Homeland SecurityRight to WorkNotifies applicants and employees of their discrimination rights under the E-Verify programMust be posted by federal contractors in English and Spanish and posted near entranceEnforced by the U.S. Department of Homeland Security 2Federal Contractor Minimum WageInforms employees of the federal minimum wage for contractorsMust be posted by federal contractors and subcontractors that have FLSA-covered workers performing work in connection with a covered Service Contract Act or Davis-Bacon Act contract, as well as those with concessions contracts or contracts offering services to federal employees or the public on federal propertyEnforced by the U.S. Department of Labor – Employment Standards Administration – Wage and Hour Division“EEO is the Law” SupplementInforms applicants and employees of federal nondiscrimination laws and procedures for filling complaints with the Office of Federal Contract Compliance ProgramsMust be posted by federal contractors and subcontractors with contracts in excess of $10,000Enforced by the U.S. Department of Labor – Office of Federal Contract Compliance ProgramsPay Transparency Policy StatementInforms applicants and employees of their pay transparency rightsMust be posted by federal contractors and subcontractors with contracts in excess of $10,000Enforced by the U.S. Department of Labor – Office of Federal Contractor Compliance ProgramsFederal Contractor Paid Sick LeaveInforms employees of their paid sick leave rightsMust be posted by federal contractors and subcontractors that have FLSA-covered workers performing work in connection with a covered Service Contract Act or Davis-Bacon Act contract, as well as those with concessions contracts or contracts offering services to federal employees or the public on federal propertyEnforced by the U.S. Department of Labor – Employment Standards AdministrationDavis-Bacon ActNotifies employees of prevailing wage requirements and overtime pay under the Davis-Bacon ActMust be posted by federal contractors and subcontractors performing on federally funded construction projects in excess of $2,000 for the actual construction, alteration/repair of public buildings or public worksEnforced by the U.S. Department of Labor – Employment Standards Administration – Wage and Hour DivisionDepartment of Transportation (DOT) Federal Highway ConstructionInforms employees to report any false statement, false reports or false claims made to the character, quality, quantity, or cost of any work performed on the contractMust be posted by federal contractors who work on federally funded highway construction projectsEnforced by the U.S. Department of Transportation” (Poster Guard)
The clocks will be set back one hour at 2 a.m. on Sunday, November 2, 2025, causing confusion and challenges for employers with nonexempt employees who were working during the time the clocks turned forward. How do we pay employees during this time? What is our legal obligation related to hours worked and paid?
On November 2, 2025, Daylight Saving Time ends in the U.S. and clocks will “fall back” one hour at 2 a.m. local time, which is a requirement under the Fair Labor Standards Act (FLSA) for employers to pay employees for all hours worked. This means employees working an overnight shift that includes this change will work one hour longer than usual and must be compensated for that extra hour, with potential overtime implications if the extra hour puts them over 40 hours for the week.
Daylight Saving Time Change
Date and time: Clocks will be set back one hour at 2 a.m. local time on Sunday, November 2, 2025.
Effect: This will result in one additional hour being worked for those on overnight shifts, and an earlier sunrise.
FLSA and Payroll Considerations
Guaranteed hours: Under the FLSA, employees must be paid for all hours they actually work.
Overnight shifts: Employees on overnight shifts that cross the time change will work an extra hour. This hour must be paid.
Overtime pay: If the extra hour pushes an employee’s total hours for the week over 40, they must be paid overtime for that hour as well.
Employer responsibility: Employers must ensure their payroll systems accurately account for this change and that employees are compensated correctly.
The AI Answer
What Employers Should Do for Daylight Saving Time in November 2025
Employer Considerations:
Adjust Work Schedules:
Since clocks fall back one hour at 2 a.m. on November 2, employees working overnight shifts that span this time will effectively work an extra hour.
Employers should decide how to handle this extra hour—whether to pay for it, treat it as overtime, or adjust schedules accordingly.
Communicate Clearly:
Notify employees ahead of time about the time change and how it affects their work hours.
Remind employees to set their clocks back before going to bed on Saturday, November 1, 2025, to avoid confusion.
Update Systems and Devices:
Many digital devices update automatically, but analog clocks, ovens, and some machinery may need manual adjustment.
Employers should ensure all timekeeping systems, security systems, and scheduling software reflect the time change accurately.
Consider Safety and Productivity:
The time change can affect sleep patterns and alertness. Employers might want to be mindful of potential impacts on employee safety and productivity immediately following the time change
Review Policies:
Check company policies regarding pay and hours worked during DST changes to ensure compliance with labor laws and fairness.
Below are three wage and hour answers, for daylight saving time change(s): Pay and Hours Worked: Employers are required to pay employees for all hours worked. Nonexempt employees working last night at 2:00 a.m. must be paid one additional hour of pay, unless the start/end times of their shifts are adjusted in anticipation of the time change. In essence, such an employee will have worked the hour from 1:00 a.m. to 2:00 a.m. twice.”[i]
Overtime: The one additional hour must be considered into the overtime compensation/calculation for the entire week. If the nonexempt employee is scheduled for 40-hours this week, the additional hour would put the employee at 41-hours, one hour of overtime, at least time and one-half the normal hourly rate.
Overtime Rate: “In addition, employers must take this additional hour of work into account when computing the employee’s regular rate of pay for purposes of calculating the employee’s overtime rate.”[ii]
Additionally, ensure that your payroll systems fall back during the time change on Sunday. I have seen issues with timekeeping and payroll systems not resetting for the one-hour time change, which will cause additional issues when processing payroll.
“Previously, employment law experts told HR Dive that managers should be mindful of giving employees proper break times if shifts encompass daylight saving transitions. So, for example, if supervisors typically rely on computers to automate break times, this would be an instance where manual timekeeping is encouraged. Additionally, HR should look into whether there are any wage and hour provisions in their workers’ collective bargaining agreement that addresses the daylight-saving time change.
Employers should ensure that they are following any provisions in a collective bargaining agreement that addresses wage and hour provisions for time change. Ultimately, the employment attorney who spoke to HR Dive reaffirmed the DOL’s guidance: Timekeeping is about “staying true” to the hours worked.
Another compliance consideration is workplace safety: A 2018 National Safety Council study found that post-daylight saving transition fatigue leads to an annual uptick in accidents, due to “circadian misalignment” or talent fighting to stay awake.” (HR Dive)
FLSA Hours Worked Advisor Daylight Saving Time Most states participate in daylight saving time. Those employees working the graveyard shift when Daylight Saving Time begins work one hour less because the clocks are set ahead one hour. Those employees working the graveyard shift when Daylight Saving Time ends work an extra hour because the clocks are set back one hour at 2:00 a.m.
For example: The scheduled shift starts at 11:00 p.m. and ends at 7:30 a.m. The next day, your employee works an eight- hour shift and receives a 30-minute lunch break.
On Sunday Daylight Saving Time starts at 2:00 a.m., the employee does not work the hours from 2:00 a.m. to 3:00 a.m. because at 2:00 a.m. all of the clocks are turned forward to 3:00 a.m. Thus, on this day the employee only worked 7 hours, even though the schedule was for 8 hours.
On the Sunday that Daylight Saving Time ends at 2:00 a.m., the employee works the hour from 1:00 a.m. to 2:00 a.m. twice because at 2:00 a.m. all of the clocks are turned back to 1:00 a.m. Thus, on this day the employee worked 9 hours, even though the schedule only reflected 8 hours.
The FLSA requires that employees must be credited with all of the hours actually worked. Therefore, if the employee is in a work situation similar to that described in the above example, he or she worked 7 hours on the day that Daylight Saving Time begins and 9 hours on the day that Daylight Saving Time ends. This assumes, of course, that the employee actually worked the scheduled shift as in our example.
That extra hour of work can present several unanticipated challenges, in addition to an unpaid hour:
Breaks. In states requiring that employees take breaks at a certain point in their shifts, workers may not automatically get that time, says Caroline Brown, of counsel at Fisher Phillips. “For that day, back off of relying on the time keeping computer so much,” Brown suggests, and figure out the time manually.
Overtime. If that additional hour puts an employee at more than 40 hours during that workweek, the Fair Labor Standards Act requires the employee be paid overtime. Employees who fall under the “8 and 80” system — or in states that require daily overtime — may be eligible for overtime for that day.
Collective Bargaining Agreements. Employers should ensure that they are following any provisions in a collective bargaining agreement that addresses wage and hour provisions for time change.
Making Adjustments Although appropriate tracking for the seasonal time change is frequently forgotten, it can be easily remedied, says Green.
The best approach is to go back to basics, Brown suggests. “There is a tendency for employers to focus on days and shifts when it comes to wage and hour requirements, when it’s really about staying true to the time of how many hours someone did the work.”
Whether timekeeping is manual or automatic, grab a pen and paper if necessary, and figure out the actual hours for that day, Brown says; “Give that payroll a glance to make sure everything lines up.” The same goes when spring rolls around: an employee working 11 p.m. to 7 a.m. when we turn the clocks forward must be paid for only seven hours of work.
It’s worth noting that not all states and regions observe Daylight Saving Time, but if yours is one that does, be prepared so you — and your employees — can avoid any unpleasant wage and hour surprises.” (HR Dive)
States That Deviate from the Daylight Saving Standard Note that Arizona (with the exception of the Navajo Nation) and Hawaii do not observe daylight saving time. Not to be outdone, Florida and Nevada have passed bills that would ensure that daylight saving time is observed year-round. Though their respective state legislatures approved these bills, and their governors signed them, they are still awaiting federal approval. And, of course, there’s California, which just a few days after the end of daylight-saving time will vote on a proposition to move the state to year-round daylight-saving time as well. Even if that proposition passes, it will require congressional approval for the change to become permanent.” (JDSUPRA)
Additional Considerations
Ensure timeclocks adjusted.
Camera’s need to align with timeclock.
The payroll smartphone app time alignment
Computer system time updates
Communication on pay and policies.
Smart phones, computers, etc.
Additional Legislative Information:
Introduced in House (01/03/2025) Sunshine Protection Act of 2025 This bill makes daylight saving time the new, permanent standard time. States with areas exempt from daylight saving time may choose the standard time for those areas.
As of October 1, 2025, the maximum weekly unemployment benefit in New York will increase from $504 to $869. This is the first increase since 2019, as the state’s unemployment trust fund had a federal debt from the COVID-19 pandemic.
Key details about the unemployment increase:
· Maximum weekly benefit: The cap will be raised to $869, an increase of over 70%.
· Effective date: October 1, 2025.
· Funding and trust fund: The 2025 state budget included using up to $8 billion from rainy-day funds to pay off the federal debt and return the trust fund to solvency.
· Benefit indexing: After the initial increase, the maximum benefit will be indexed annually at 50% of the state’s average weekly wage.
· Employer tax relief: Paying off the federal debt will also eliminate the annual “Interest Assessment Surcharge” for New York businesses.
· Striking workers: The budget agreement reduces the waiting period for striking workers to receive unemployment benefits from three weeks to two.
2023 New York State Unemployment Notice Requirement
Beginning November 13, 2023, the law will require every employer who is obligated to contribute to the unemployment insurance system to notify their employees about their right to apply for unemployment benefits, when applicable.
That statute will now require employers to provide specific notifications to employees regarding their potential eligibility for unemployment benefits.
New York employers have already been expected to provide employees with a Record of Employment upon separation, the law will now require notification in more situations that don’t necessarily involve termination of employment.
When Is the Unemployment Notice Required?
Employers must provide this unemployment notice:
At the time of each permanent or indefinite separation from employment.
During a reduction in hours.
During a temporary separation.
For any other interruption of continued employment resulting in total or partial unemployment.
Unfortunately, the above terms are not specifically defined in the amended statute.
What Should the Unemployment Notice Include?
The required notice must be in writing and should be on a form either furnished or approved by the New York Department of Labor.
The notice must contain:
Employer’s Details: This includes the employer’s name and registration number.
Address for Communication: The notice should specify the address of the employer to which any request for remuneration and employment information regarding the employee should be directed.
Additional Information: Any other information as required by the Department of Labor should also be included.
So far, the DOL has not yet released the required notice form. It is hoped that when it does so, the DOL will better explain the circumstances where notice must be provided short of permanent employment separation.
Implications for Employers
This new unemployment notice provision emphasizes the state’s commitment to ensuring that employees are well-informed about their rights. For employers, it means:
Being Proactive: Employers should be ready with the required forms and processes in place by November 13, 2023.
Training HR Teams: HR teams should be trained to understand the nuances of the new unemployment notice provision and ensure compliance.
Avoiding Penalties: Non-compliance could lead to negative consequences regarding unemployment claims. It’s crucial for employers to adhere to these new unemployment notice requirements diligently. (Horton PLLC)
When Should Employers Contest Unemployment Claims?
Serious Misconduct or Voluntary Quit: Employers should generally only contest claims if the employee was terminated for serious misconduct (such as theft, violence, or repeated policy violations) or if the employee quit without a compelling reason. Contesting claims in other situations can be time-consuming and may not be successful.
Clear Documentation: Only proceed if you have solid documentation supporting your case, such as written warnings, termination letters, or evidence of policy violations.
Why Employers Should Rarely Fight Claims
Cost vs. Benefit: While unjustified claims can increase your unemployment insurance costs, fighting every claim is rarely cost-effective. Most HR experts recommend contesting only in clear-cut cases of misconduct or fraud.
Employee Relations: Aggressively contesting claims can harm your reputation and employee morale. It’s often better to reserve challenges for the most egregious cases.
How to Contest an Unemployment Claim
Respond Promptly: When you receive notice of a claim, respond within the required timeframe and provide all requested information.
Present Evidence: Be prepared to present evidence that the employee was terminated for misconduct or quit without good cause. This may include documentation of the employee’s duties, violations, and any warnings given.
Participate in Hearings: If the claim is appealed, you may need to participate in a hearing. Bring witnesses and documentation to support your case.
Be Honest and Consistent: Ensure all statements and evidence are truthful and consistent with previous records. Inconsistencies can undermine your credibility.
Best Practices
Maintain Thorough Records: Keep detailed records of employee performance, disciplinary actions, and reasons for separation.
Evaluate Each Case Individually: Assess the merits of each claim before deciding to contest. Blanket opposition to all claims is discouraged.
Consult Legal or HR Experts: When in doubt, seek advice from HR professionals or legal counsel to ensure compliance with state laws and best practices.
If the employee is the one asking for time off, though, the requirement is not triggered. This can include a leave of absence, vacation, parental leave, personal leave, or any other type of paid or unpaid leave.
Remote Work Policies With remote and hybrid work becoming more common, updating policies to clearly define expectations, eligibility, and equipment use is essential.
The EEOC is focusing on discrimination claims related to hair texture and style, so grooming and dress code policies should be reviewed and updated accordingly .
Use inclusive language throughout the handbook, such as gender-neutral pronouns (they/them), to foster inclusivity
Employee Classifications and Wage Laws
Review classifications under the Fair Labor Standards Act (FLSA) to ensure proper exemption status.
Stay current with state-specific wage and hour laws, including paid time off and leave policies
Paid Family and Medical Leave
Be aware of state-specific changes, such as Maryland delaying its Paid Family and Medical Leave program contributions until July 1, 2025, with benefits starting July 1, 2026
Pregnancy Accommodations
Update policies to comply with evolving pregnancy accommodation laws and ensure clear procedures for requesting accommodations.
State-Specific Legal Changes
California employers should note changes affecting non-discrimination, leave, and vacation policies effective January 2025.
New York and New Jersey employers must incorporate recent federal and state legal developments into their handbooks .
Company Culture and Compliance Balance
While compliance is critical, also ensure the handbook reflects your organization’s culture and values to engage employees effectively
General Policy Reviews
Regularly review key policies such as leave, attendance, workplace conduct, and disciplinary procedures to maintain compliance and clarity.
New York State Handbook Review & Update Considerations
Paid Family Leave and Paid Sick Leave: New York State has been expanding its paid family leave and paid sick leave laws. Ensure your handbook reflects the latest eligibility, benefits, and procedures for requesting leave under these laws.
Minimum Wage and Overtime Rules: New York State and many localities (e.g., NYC, Long Island) have scheduled minimum wage increases. Confirm that wage policies and overtime eligibility align with the current rates and thresholds effective in 2025-2026.
Anti-Discrimination and Harassment Policies: Updates to reflect any new protected classes or changes in reporting procedures under New York State Human Rights Law and recent case law. Training requirements for harassment prevention may also have changed.
Workplace Safety and COVID-19 Policies: While COVID-19 emergency rules have relaxed, some employers maintain policies on vaccination, testing, or remote work. Review any state or local health guidance that might affect workplace safety protocols.
Employee Classification and Wage Transparency: New York has laws addressing gig workers, independent contractors, and wage transparency. Ensure handbook language clarifies employee status and complies with disclosure requirements.
Leave for Voting, Jury Duty, and Military Service: Confirm that leave policies comply with New York State laws protecting these rights.
Use of Technology and Social Media: Update policies on acceptable use of company devices, data privacy, and social media conduct, reflecting evolving norms and legal standards.
This is a shortlist of potential sections to review and revise in most employee handbooks. Continue to review local and state changes as well, when reviewing and updating employee handbooks. Communication, training and setting the expectations is necessary with any organizational change, including employee handbooks.
“Many states, counties, cities, and towns have their own laws prohibiting discrimination, as well as agencies responsible for enforcing those laws. We call these state and local agencies “Fair Employment Practices Agencies” (FEPAs). Usually the laws enforced by these agencies are similar to those enforced by EEOC.”[i] States and cities (including New York State and New York City) have entered into a work sharing agreement with the EEOC. What does this mean for our organizations? Does it have an impact on how we should operate or how we manage workplace allegations and investigations?
Work Sharing Agreements:
Under these terms, both the EEOC and state authority (NYS Division of Human Rights) or City (NYC) can designate the other as its agent for receipt of charges.
What does this mean? If a charge is received by one partner under the agreement, it is deemed received by the other.
“Moreover, these agreements typically proved that the state entity can waive its rights to process such a charge referred to it by the EEOC, which as the effect of permitting the federal agency to process the charge without waiting for the 60-day period to expire.
Many such agreements have an automatic waiver provision, which means that as soon as the charge is filed with the EEOC, the EEOC can begin processing it without going through the motions of referring it back to the state authority.
It also means that the grievant need not file with the state agency within 240 days of the unlawful practice, but, instead, has a full 300 days within which to take the initial step of filing a charge with the federal agency.”[i]
“You can file your charge with either the EEOC or with a Fair Employment Practices Agency. If the charge is initially filed with EEOC and the charge is also covered by state or local law, EEOC dual files the charge with the state or local FEPA (meaning the FEPA will receive a copy of the charge), but ordinarily retains the charge for processing.
If a FEPA has a contract with EEOC, a Charging Party may request that the EEOC review the determination of the FEPA. EEOC will conduct a review only if the request is submitted in writing within fifteen (15) days of receipt of the FEPA’s determination.”[ii]
Confused yet? To summarize, New York State and New York City have a working agreement with the EEOC, if a charge is filed, it is sent with the state or city, it is sent to the EEOC as well, if it falls within the 300-day requirement, under current federal law. “The EEOC contracts with approximately 90 FEPAs nationwide to process more than 48,000 discrimination charges annually.”[iii]
In summary, New York State and New York City have a working agreement with the EEOC. If a charge is filed, it is shared with both the state or city agency and the EEOC, provided it falls within the 300-day requirement under current federal law. The EEOC contracts with approximately 90 FEPAs nationwide to process more than 48,000 discrimination charges annually.
Implications for Organizations
So, what does all of this mean for organizations operating in areas with work sharing agreements? Here are some key implications:
Awareness of Extended Filing Deadlines: Organizations must be aware that employees have 300 days to file a charge with the EEOC, even if the state or local filing deadline is shorter. This extended timeframe can impact internal investigation timelines and record retention policies.
Potential for Dual Investigations: While the EEOC typically retains the charge for processing, organizations should be prepared for the possibility of parallel investigations by both the EEOC and the relevant FEPA. Coordination with legal counsel is crucial in such situations.
Importance of Thorough Internal Investigations: Given the potential for charges to be filed with either the EEOC or a FEPA, organizations should conduct thorough and impartial internal investigations of any workplace allegations of discrimination or harassment. A well-documented investigation can be a valuable defense in the event of a formal charge.
Review of Policies and Procedures: Organizations should review their anti-discrimination and harassment policies and procedures to ensure they are up-to-date and compliant with both federal and state/local laws. This includes ensuring that employees are aware of their rights and responsibilities under these laws.
Training for Managers and Employees: Regular training for managers and employees on anti-discrimination and harassment laws is essential. This training should cover topics such as recognizing and preventing discrimination, handling complaints, and conducting investigations.
Consistent Application of Policies: It is crucial to apply policies and procedures consistently across the organization. Inconsistent application can lead to claims of discrimination and undermine the organization’s defense in the event of a charge.
Documentation: Maintain thorough and accurate records of all complaints, investigations, and disciplinary actions. This documentation can be critical in defending against discrimination charges.
Legal Counsel: Consult with legal counsel experienced in employment law to ensure compliance with all applicable federal, state, and local laws. Legal counsel can also provide guidance on handling specific charges and investigations.
[i] Joel Wm. Friedman, Examples & Explanations: Employment Discrimination. Third Edition (Wolters Kluwer 2017).
California: Requires employers to include salary ranges in job postings.
Colorado: Enacted the Equal Pay for Equal Work Act, which includes pay transparency requirements.
Connecticut: Requires employers to disclose wage ranges in job postings and prohibits seeking salary history.
Hawaii: Requires employers to disclose salary ranges in job postings.
Illinois: Has pay transparency requirements, with some guidance rolling out in 2025.
Maryland: Requires employers to disclose wage ranges in job postings.
Massachusetts: Requires employers with 100+ employees to submit wage data reports annually.
Minnesota: Has pay transparency requirements, including disclosure of salary ranges.
Nevada: Requires employers to disclose wage or salary ranges.
New Jersey: Has pay transparency requirements.
New York: Requires employers to disclose salary ranges in job postings.
Rhode Island: Requires employers to provide the wage range prior to discussing compensation and upon request.
Vermont: Requires employers to disclose hourly wage or salary, or range, in job postings.
Washington: Requires employers to include salary ranges in job postings.
Washington D.C.: Requires employers to disclose wage ranges in job postings.
Pay Transparency Laws by State: Effective Dates
Below is an at-a-glance list of the states and corresponding effective dates that require disclosure of pay range under certain circumstances. Each law is different, so employers should review each specific jurisdiction’s requirements to ensure compliance:
California – effective Jan. 1, 2023
Colorado – effective Jan. 1, 2021
Connecticut – effective Oct. 1, 2021
District of Columbia – effective June 30, 2024
Hawaii – effective Jan. 1, 2024
Illinois – effective Jan. 1, 2025
Maryland – effective Oct. 1, 2020
Massachusetts – effective Oct. 29, 2025
Minnesota – effective Jan. 1, 2025
New Jersey – statewide law effective June 1, 2025
New York – effective Sept. 17, 2023
Nevada – effective Oct. 1, 2021
Rhode Island – effective Jan. 1, 2023
Vermont – effective July 31, 2025
Washington – effective Jan. 1, 2023
As of this writing, several jurisdictions in the U.S. have some form of a pay transparency law. But more could be on the horizon.
Of course, as with all aspects of employment law, each jurisdiction handles these requirements differently.
Starting at a high level, some states have laws that require employers to disclose the pay range for a position if the applicant asks for it:
California
Colorado
Connecticut
Maryland
Massachusetts – effective as of Oct. 29, 2025
Minnesota
Nevada
Rhode Island
Even among these states, there is some variation in how they implement their pay transparency laws.
Salary History Bans in the United States
Salary history bans are adjacent to pay transparency laws and generally prohibit employers from asking job applicants about their past or current pay.
These laws preclude employers from relying on pay history to set compensation, part of the growing employment law sector related to the #MeToo movement.
Employers can usually ask for pay expectations but not actual pay history.
What states have salary history bans?
States, or jurisdictions within them, that have salary history bans include:
1. Regularly Review and Update Compensation Policies
Conduct regular audits of pay practices to ensure compliance and identify any unjustified pay disparities
Establish clear, documented guidelines for setting and communicating pay ranges.
2. Standardize Job Postings
Include required salary ranges and compensation details in all job postings, especially for roles that could be performed in states with transparency laws.
For multistate employers, consider adopting the strictest applicable standard to streamline compliance
3. Train Managers and HR Staff
Ensure those involved in hiring and compensation decisions understand the requirements and are prepared to answer questions about pay transparency
4. Prepare for Employee Inquiries
Be ready to provide pay scale information to current employees and applicants upon request, as required by law
5. Monitor Legal Developments
Stay informed about new and evolving wage transparency laws, as more states and localities are expected to adopt similar requirements in the coming years
Strategic Opportunities
1. Building Trust and Employer Brand
Transparent pay practices can enhance employee trust, improve retention, and make the organization more attractive to top talent
2. Promoting Pay Equity
Wage transparency helps identify and address pay gaps, supporting diversity, equity, and inclusion goals
2023 New York State Wage Transparency September 17, 2023
“As a reminder, the pay transparency law, which is codified at Section 194-b of the New York Labor Law, will require employers with four or more employees to include the following whenever they “advertise” for a job, promotion, or transfer opportunity:
The compensation or “range of compensation” for the job, promotion, or transfer opportunity.
The job description for the job, promotion, or transfer opportunity, if one exists.
The original legislation did not define the term “advertise.” The amendment adds the following definition:
“[A]dvertise” shall mean to make available to a pool of potential applicants for internal or public viewing, including electronically, a written description of an employment opportunity.
This is a broad definition and will likely encompass internal postings on an intranet or job board, postings in newspapers and “want ads,” as well as electronic postings on the employer’s website or job posting sites such as Indeed.com or ZipRecruiter.” (https://www.hodgsonruss.com/newsroom-publications-14258.html)
“On Dec. 21, 2022, Gov. Kathy Hochul signed the long-anticipated New York State pay transparency bill into law. The bill amends New York State Labor Law by adding a new section 194-b, which takes effect on Sept. 17, 2023. Labor Law § 194-b continues a recent trend toward pay transparency both nationally and locally, including similar laws in New York City, Albany County, Westchester County and Ithaca.
Employers subject to the law are broadly defined to include nearly every entity with four or more employees, as well as agents and recruiters. Only temporary help firms, as defined under New York State Labor Law § 916(5), are exempt.[1]
Similar to other pay transparency laws, Labor Law § 194-b requires employers to disclose an amount or a range of compensation for any open job, promotion or transfer opportunity that can or will be performed, at least in part, in New York State. The law defines “range of compensation” as “the minimum and maximum annual salary or hourly range of compensation . . . that the employer in good faith believes to be accurate at the time of the posting of an advertisement” for the job, promotion or transfer opportunity. Advertisements for jobs, promotions or transfer opportunities that are paid solely on commission must disclose that in writing. Additionally, the law requires employers to post a job description if one exists.
Labor Law § 194-b does not define “advertisement,” so the breadth of the law’s application to activities such as direct recruitment and internal promotion is unclear. Presumably, the Commissioner of Labor will clarify the scope of coverage by regulations, which the law directs the Commissioner to promulgate.
Employers are required to keep and maintain records in connection to the law, including the history of compensation ranges for each job, promotion or transfer opportunity and the job descriptions for these positions, if such job descriptions exist.
Any person claiming to be aggrieved under Labor Law § 194-b may file a complaint with the Department of Labor, which has the authority to impose civil penalties of up to three thousand dollars for violations of the law or forthcoming regulations. Employers are prohibited from refusing to interview, hire, promote, employ or otherwise retaliate against an applicant or current employee for exercising any rights under this new law.
Finally, Labor Law § 194-b contains a provision stating that it shall not be construed or interpreted to supersede or preempt any local law, rules, or regulation. Most of the existing local pay transparency laws in New York failed to predict a parallel state law (despite the fact that one had already passed in the legislature), so employers subject to these laws will have to comply with overlapping obligations unless the local jurisdictions yield. The Westchester County Salary Transparency Law is the outlier and expressly gives way to “substantially similar” state legislation.” (Bond)
May 12, 2022, the Salary Transparency Law was enacted in New York City, which was postponed to the effective date of November 1, 2022.
“In addition to employers, 134-A specifies that employment agencies, and employees or agents thereof, must also include a salary range or hourly wage range in each advertised position, promotion, or transfer opportunity. Job advertisements for “temporary employment at temporary help firms” are still exempted from the law. Temporary help firms are defined as businesses that recruit and hire their own employees and assign those employees to perform work at or perform services for other organizations or businesses.” (Littler)
“The civil penalty for the first violation will be $0 if the employer cures the violation within 30 days of receipt of a complaint. The proof of cure may be submitted either electronically or in person and is deemed an admission of liability by the employer.
In line with the recent CCHR guidance (which has now been updated), the law would apply to job listings for both salaried and hourly positions, and would not apply to any position “that cannot or will not be performed, at least in part, in the city of New York.”
While an individual may only file a lawsuit based on a violation arising from an advertisement by their current employer, any aggrieved person may file a complaint with the Commission, regardless of whether the alleged violator is the grievant’s current employer.” (Bond)
New York Wage Transparency Law
As assumed, on June 3, 2022, New York State passed a similar law on wage transparency.
“The new law would require covered employers to disclose compensation or a range of compensation to applicants and employees upon issuing an employment opportunity for internal or public viewing, or upon employee request. The Bill is intended to enhance transparency around compensation and reducing any existing wage disparities among employees.
The Bill defines a covered employer as: (i) “any person, corporation, limited liability company, association, labor organization or entity employing four or more employees in any occupation, industry, trade, business or service, or any agent thereof;” and (ii) “any person, corporation, limited liability company, association or entity acting as an employment agent or recruiter, or otherwise connecting applicants with employers, provided that “employer” shall not include a temporary help firm” as the term is defined under New York Labor Law Section 916 (5).
The Bill requires covered employers to disclose the following information in job postings, including for promotions and transfer opportunities, that can or will be performed at least in part in the State of New York:
The compensation or a range of compensation for such job, promotion, or transfer opportunity; and
The job description for such job, promotion, or transfer opportunity, if such description exists.
For positions that are paid solely on commission, compliance with the law’s compensation disclosure requirements can be achieved by providing a written general statement that compensation shall be based on commission.
Additionally, the new law would prohibit employers from refusing to interview, hire, promote, employ or otherwise retaliating against an applicant or current employee for exercising their rights under new Section 194-b. The law would allow individuals aggrieved by a violation to file a complaint with the NYS Department of Labor (NYSDOL). Violations of the any of the requirements of the new law or any subsequently published regulations could result in a civil penalty pursuant to NY Labor Law Section 218 which generally provides civil monetary penalties for non-wage related violations ranging from $1,000 to $3,000, to be assessed by the NYSDOL.
Under the new law, covered employers would also be required to maintain records of compliance, including but not limited to the history of compensation ranges for each job, promotion or transfer opportunity as well as the job descriptions for such positions (if applicable).” (Bond)
If enacted, the proposed bill would take effect 270 days after it becomes law.
These are simple changes to make when posting for openings and recruiting. Ensure that you are communicating the anticipated changes throughout your organization. Continue to monitor for any upcoming changes or modifications to the proposed legislation. These changes are a trend nationally.
Ithaca New York Pay Transparency Law Effective September 1, 2022: “The City of Ithaca will require employers to disclose the minimum and maximum pay in every job posting, starting September 1. The new city ordinance applies to any employer with more than three permanent workers based in Ithaca. That could also include employers of certain Ithaca-based remote workers.”
In light of recent unfortunate events at a Coldplay Concert, when a CEO and HR Director were caught on a camera moment, ducking and hiding away from the media. Dating in the workplace is common, every organization should have parameters in place to ensure expectation is set, consequences and clear ethical guidelines are in place. We have all seen the fallout from the recent events at the Coldplay Concert, the CEO resigns, the HR Director is under investigation and internal workplace ethical credibility is gone. Ethics starts at the top of the organization, if we don’t follow the mission, vision, values and code of ethics in the organization, why should we expect the workforce to follow anything? Setting the tone at the top helps drive, culture, communication, internal equity, transparency, trust and open communication throughout the organization.
Dating in the workplace is a common occurrence, given how much time employees spend together. However, it brings unique challenges and risks that employers must address to maintain a professional, safe, and productive environment.
1. Clear Policies and Guidelines Employers are increasingly expected to have clear, written policies regarding workplace relationships. These policies typically outline:
Disclosure Requirements: Many employers require employees to disclose romantic relationships, especially if there is a reporting relationship or potential conflict of interest. Disclosure allows the employer to manage risks, such as favoritism or conflicts, and to make adjustments if necessary (e.g., changing reporting lines).
Prohibited Relationships: Most policies explicitly prohibit relationships between managers and their direct reports to avoid power imbalances and perceptions of favoritism or coercion.
Consensual Relationships: Employers emphasize that all relationships must be consensual and free from any form of harassment or coercion. Some require both parties to sign a consensual relationship agreement.
2. Professional Conduct Employers expect employees to maintain professionalism at all times, which includes:
No Public Displays of Affection (PDA): Employees are expected to refrain from PDA or any behavior that could make colleagues uncomfortable.
No Favoritism: Employees should avoid any actions that could be perceived as favoritism or bias due to their relationship.
Maintaining Boundaries: Personal issues should not spill over into the workplace. If a relationship ends, both parties are expected to remain professional and not disrupt the work environment.
3. Anti-Harassment and Complaint Procedures Employers are required to have robust anti-harassment policies and complaint procedures:
Sexual Harassment Training: Regular training is expected, especially for supervisors, to ensure everyone understands what constitutes harassment and how to report it.
Multiple Reporting Channels: Employees should have several avenues to report inappropriate conduct, not just through their direct supervisor.
Prompt Investigation: Employers are expected to investigate complaints thoroughly and impartially, taking corrective action if necessary.
4. Confidentiality and Non-Retaliation
Confidentiality: Employers stress the importance of keeping personal relationships and related information confidential to protect privacy and prevent gossip.
Non-Retaliation: Employees must be protected from retaliation if they report concerns or end a relationship.
5. Consequences for Policy Violations Violating workplace dating policies can result in disciplinary action, including reassignment or termination, depending on the severity of the infraction.
Key Takeaways for Employees
Know Your Company’s Policy: Always check your employee handbook or consult HR before starting a workplace relationship.
Disclose When Required: If your company requires disclosure, do so promptly to avoid potential disciplinary action.
Maintain Professionalism: Keep your relationship separate from your work life, avoid PDA, and treat your partner and colleagues equally.
Understand the Risks: Be aware that workplace relationships can lead to gossip, perceptions of favoritism, and complications if the relationship ends.
Seek Support if Needed: If you experience harassment or retaliation, use the reporting channels provided by your employer.
What Are Love Contracts? A love contract—also known as a consensual relationship agreement—is a voluntary document signed by two employees who are in a romantic relationship at work. The contract typically acknowledges that the relationship is voluntary and consensual, and it often outlines expectations for professional conduct in the workplace
Why Employers Use Love Contracts
Legal Protection: Love contracts are primarily used to protect employers from potential legal claims, especially those related to sexual harassment or favoritism. By having both parties acknowledge the consensual nature of the relationship, employers can reduce the risk of later claims that the relationship was unwelcome or coerced
Clarifying Boundaries: These agreements help clarify how the romantic relationship will (and will not) affect the working relationship, which can be especially important if one party supervises the other
Managing Breakups: In the event of a breakup, a love contract can help smooth the transition and set expectations for continued professionalism
When Are Love Contracts Used? Love contracts are most commonly used when a workplace romance involves a manager and a subordinate, as this dynamic poses the greatest risk for claims of harassment or favoritism. Most companies do not require love contracts for relationships between employees at the same level.
Ethics in the Workplace Leadership ethics in the workplace refers to the practice of leaders making decisions and guiding their teams based on moral principles and values, rather than just focusing on profits or personal gain. Ethical leadership is about doing the right thing for the common good, considering the needs of employees, customers, communities, and the organization as a whole.
Core Principles of Ethical Leadership Ethical leadership is built on several foundational principles:
Respect: Ethical leaders value the skills and contributions of others, fostering mutual respect rather than demanding it one-way. This creates healthier workplace relationships and a positive environment
Accountability: Leaders hold themselves responsible for their actions, lead by example, and communicate openly about challenges without shifting blame
Service: Ethical leaders prioritize the well-being of employees, customers, and the community, often engaging in charitable activities and encouraging their teams to do the same
Honesty and Transparency: Open and honest communication builds trust within the organization and with customers, even when addressing difficult or unpopular issues
Justice and Fairness: Ethical leaders ensure fair treatment for everyone, striving for equity and inclusion in decision-making
Community: They view the organization as a community, considering the impact of decisions on all stakeholders and promoting collaboration
A helpful framework for remembering these principles is the acronym FATHER: Fairness, Accountability, Trust, Honesty, Equality, and Respect.
Why Leadership Ethics Matter
Ethical leadership has significant benefits for organizations:
Improved Workplace Culture: Ethical leaders inspire trust, psychological safety, and a sense of belonging, leading to higher employee morale and engagement
Attracting and Retaining Talent: Employees, especially younger generations like Gen Z, are drawn to organizations with strong ethical values and are more likely to stay with such companies
Customer Loyalty: Consumers increasingly prefer to support businesses that demonstrate ethical practices and social responsibility
Long-Term Success: Ethical leadership helps prevent scandals and fosters sustainable growth by building loyal partnerships, customers, and employees
What Should Employers Consider?
Reporting Requirements: Love contracts usually require employees to report their relationship to HR, and also to notify HR if the relationship ends
Favoritism Concerns: Even with a love contract, employers must be vigilant about potential claims of favoritism or discrimination from other employees.
Policy Integration: Love contracts should be part of a broader workplace romance policy that addresses reporting, confidentiality, and professional conduct.
As we all know and understand, workplace burnout can be a significant issue in any of our organizations and throughout the workforce. How do we help solve this common problem? What opportunities can we offer to employees to reduce workplace burnout? Lead by example and set the tone at the top of the organization to counter workplace burnout, while ensuring employee commitment and engagement.
My 6 recommendations on countering workplace burnout:
Prioritize Your Health: This is a challenge for all of us, with long workdays and challenging work schedules (electronic responses late night). Look for opportunities to reduce stress and recognize when it is time to turn it off. Eat healthy, exercise regularly (I work out at 5am most mornings, it is a great way to start the day), get a full night’s sleep (turn the TV off and other technology early) and meditate or find alternatives to reduce stress. Developing disciplined and healthy habits will help you develop a routine; health should be a priority for all of us; I learned this the hard way.
Compassion: We all have different workstyles and how we personally handle stress and burnout. Recognize your own signs when work and life are too much, know that it is okay to take a break and rejuvenate for a few days. Know when employees in the organization are burning out and ask them to take a break. Burnout isn’t a personal failure, its simply time for a break. Make the break a priority.
Set the Tone at the Top: Some of you have seen emails from me at 3am (or earlier), this is an area where I need to heed my own advice. Set a good example as leaders in the organization and know when a break is needed and when to turn off the technology. Encourage employees to take downtime and focus on life, not work.
The Why: Have a true understanding of the reasons your organization or you personally are having workplace burnout. Is there anything we need to change as an organization? Is there anything I need to change? Can we do 4-day work weeks in the summer? Ask for feedback from the workforce and actively listen. Make the necessary changes to avoid burnout within yourself and your workforce.
Vacation & PTO Days: We have vacation and PTO days as a benefit in most organizations for a reason. Use the days granted by the organization and understand the value of using vacation and PTO days. Encourage subordinates to use these days as well and enforce the no technology usage on vacation policy. It is necessary to unplug, I still have not learned this.
Learn to Unplug: I will call myself a hypocrite with this recommendation. I have not learned how to unplug as of yet, but I am working on it! Technology controls the way we communicate and how we run our organizations. We have the ability to have instant access to information and need it to make effective and sound decisions. Turning off the technology is not a bad thing; it provides the break we all need. Learn how to unplug, even if it is only checking messages once a day on vacation (let’s see how well I am following my own advice). I was in Yellowstone National Park, so cellphone service was sporadic at best, which helped me turn off the technology for a while.
These are a just a few thoughts I have had as I reflect back on a busy first half of 2025 and recognize areas I need to personally improve on work-life balance, while learning to unplug. We all work differently, find the balance between life and work that is effective for you and your organizations. Taking a break is not failing, it is recognizing your mind, body and spirit need to do something different or do nothing at all for a few days. Enjoy the summer.
Strategies to Address and Prevent Burnout
Foster a Culture of Wellbeing:
Make employee wellbeing a core part of organizational culture, not just an HR initiative.
Encourage work-life balance by promoting reasonable hours, flexible schedules, and the use of vacation time
Equip Managers to Support Employees:
Train managers to set clear expectations, provide regular feedback, and remove barriers to success.
Encourage open communication and regular check-ins to identify stressors early
Promote Mental Health Awareness:
Offer mental health resources, such as confidential counseling or workshops on stress management.
Normalize discussions about mental health to reduce stigma
Recognize and Reward Employees:
Provide rewards that show appreciation for employees as individuals, not just for their performance. This could include gift cards, extra time off, or public recognition
Improve Workload Management:
Use tools to optimize scheduling and ensure adequate staffing levels.
Avoid last-minute changes that create unnecessary stress
Leverage Technology for Insights:
Tools like Deloitte’s “Vitals” dashboard can help monitor employee workloads and identify early signs of burnout. Such systems enable proactive interventions
Create a Positive Work Environment:
Encourage collaboration, fairness, and respect among team members.
Adjust environmental factors like noise levels, lighting, and seating arrangements to enhance comfort (You.com)
NYC ESSTA Rules Incorporating Prenatal Leave
The New York City Department of Consumer and Worker Protection issued amended rules on May 30, 2025, formally incorporating the state prenatal leave requirement into ESSTA. Changes and obligations related to prenatal leave, which are effective July 2, 2025, include:
Policy Requirements
The obligation to promulgate and distribute a policy related to ESSTA is expanded to require that such policy address paid prenatal leave entitlements. Under the rules, employers must distribute their written safe and sick time and paid prenatal leave policies to employees personally upon hire and within 14 days of the effective date of any policy changes and upon an employee’s request.
In essence, all NYC employers have an obligation to modify their current policy and reissue the revised policy to current employees.
Employee Notice of Rights, Posting
The Department also issued an updated Notice of Employee Rights that includes paid prenatal leave. The updated notice must be provided to new hires and to current employees when rights change (which is the case here), and employers must maintain a record of receipt by the employee. The notice also must be posted.
All NYC employers have an obligation to modify the notice required for new hires and reissue the notice to current employees.
Paystub Requirement
For each pay period in which an employee uses prenatal leave, the following information must be clearly documented on pay stubs or other documentation provided to the employee, such as a pay statement:
The amount of paid prenatal leave used during the pay period; and
Total balance of remaining paid prenatal leave available for use in the 52-week period.
Takeaways
Changes to NYC’s paid prenatal leave requirement take effect 07.02.25.
They incorporate and enhance NYS prenatal leave protections that went into effect at the beginning of this year.
NYC employers should understand their obligations and implement the changes to policies, notices, and recordkeeping.
Since Jan. 1, 2025, all private-sector employers in New York have been required to provide up to 20 hours of paid prenatal leave in a 52-week period to eligible employees, regardless of company size. The 52-week leave period starts on the first day the prenatal leave is used.
The prenatal leave entitlement is in addition to the statutory sick leave entitlement and other paid time off benefits provided by company policy or applicable law, and it applies only to employees receiving prenatal healthcare services, such as medical exams, fertility treatments, and end-of-pregnancy appointments. Spouses, partners, or support persons are not eligible to use prenatal leave.
Employment Practices Liability Insurance (EPLI) is evolving rapidly in 2025, driven by technological advancements, regulatory changes, and shifting workplace dynamics. Below are the key trends shaping the EPLI landscape this year:
1. Increased Focus on Artificial Intelligence (AI) in Hiring
The use of AI in hiring processes is a double-edged sword. While AI can streamline recruitment, it also introduces risks of bias and discrimination. For example:
The Equal Employment Opportunity Commission (EEOC) settled its first AI-related discrimination case in 2023, where an employer’s AI system rejected older applicants, resulting in a $365,000 settlement
States like New York and Colorado have enacted laws requiring employers to audit AI tools for bias, and federal frameworks like the Department of Labor’s AI & Inclusive Hiring Framework are guiding employers on mitigating algorithmic discrimination risks
In 2025, businesses using AI must implement safeguards, such as regular bias audits and human oversight, to avoid litigation and EPL claims
2. Stricter Workplace Harassment Regulations
The EEOC’s updated workplace harassment guidance, effective since April 2024, has expanded protections for employees. Key updates include:
Broader definitions of sexual harassment to include LGBTQI+ workers and pregnancy-related conditions.
Recognition of online harassment in remote work environments, such as inappropriate comments during video meetings or offensive imagery visible in virtual settings
Clarifications on balancing religious expression with protections for other employees
These changes mean employers must update their anti-harassment policies and training programs to remain compliant and reduce EPL risks
3. Pay Transparency and Wage Equity
Pay transparency laws are gaining momentum, requiring employers to disclose salary ranges in job postings and provide wage data to employees. This trend aims to address pay inequality and promote fairness:
Colorado pioneered pay transparency laws in 2019, and many states have followed suit, with more legislation expected in 2025
The EEOC has included equal pay initiatives in its Strategic Enforcement Plan for 2024-28, signaling heightened scrutiny on wage practices
Employers must ensure compliance with these laws to avoid claims related to wage discrimination and inequity
4. Rising EPL Claims and Settlements
Recent high-profile settlements highlight the growing financial risks of EPL claims:
Mastercard settled a $26 million lawsuit in January 2025 over allegations of systemic underpayment of women and minorities
Social inflation is driving higher court awards, making EPLI coverage more critical for businesses of all sizes
Employers should review their EPLI policies to ensure adequate coverage for emerging risks, including retaliation claims and wage-and-hour disputes
5. Regulatory and Legislative Changes
New laws and executive orders are reshaping the EPLI landscape:
The Pregnant Workers Fairness Act (PWFA) and expanded protections for contractors and vendors are increasing employer liability
Restrictions on Diversity, Equity, and Inclusion (DEI) programs within federal agencies and contractors are creating compliance challenges
Employers must stay informed about these changes and work with legal counsel to navigate the evolving regulatory environment
Conclusion
In 2025, employment liability protection insurance is more critical than ever as businesses face new risks from AI, stricter harassment laws, pay transparency requirements, and rising claims. Employers should:
Conduct regular audits of workplace policies and AI tools.
Update anti-harassment and pay equity practices.
Secure robust EPLI coverage to mitigate financial and reputational risks.
By staying proactive, businesses can navigate these challenges and foster a compliant, equitable workplace. (You.com)
Burr’s- 4 Need to Knows of Employment Practice Liability Insurance (EPLI)- What is it EPLI?
There are a variety of insurance policies and coverage on the market today for organizations, worker’s compensation, business, employee’s, vehicles, etc. You can insure just about anything (within reason). What about business insurance for a what if situation related to discrimination? Does insurance like this exist? What is employment practice liability insurance (EPLI)? EPLI is a specialized insurance designed for organizations to protect against losses incurred in litigating and settling wrongful employment practice liability claims. This insurance provides protection against a what if scenario; discrimination, breach of contract and wrongful discharge lawsuits. Many times, these lawsuits are not covered under general business liability insurance. EPLI is generally structured as gap insurance for the organization. “Directors’ and officers’ liability insurance only protects the individual and not the company itself. EPLI is most commonly designed to fill this gap in coverage. It generally provides reimbursement for the costs incurred in defending a lawsuit but does not cover reimbursement for any penalties suffered.” [i]
The four factors of employment practice liability insurance:
Cost of EPLI: This will be dependent upon the size of the organization, type of industry/business and other risk factors; previous issues, employment practices, etc.
Relevancy to Organizations: EPLI continues to grow in popularity as employment lawsuits have also grown in popularity and filing charges with agencies has become much easier with the advent of the Internet and through social media communications. Organizations are not prepared to absorb the risk of loss from such lawsuits, claims and settlements.Don’t assume, “this can never happen to our organization.”
Evaluation of Policies: Organizations should work with current insurance providers to review the scope of coverage and adequacy of limits. “They should understand who controls the claims handling process-the insured or insurer. Selection of an appropriate policy for your company’s needs can be difficult and should be carefully considered.”[i] Do your homework and be prepared to ask questions and fully understand the EPLI policy and processes involved, if a claim is filed. Your organization will be paying the premium, you need to fully understand what you are paying for and how this insurance will impact the organization in relation to a what if scenario.
What Will Insurance Companies Look For: Many insurance companies will not insure a company unless there are basic and sound employment practices in place. “Employee handbooks, post-incident investigation practices, and arbitration or mediation policies are some of the major items that insurance companies expect an employer to have when applying for an EPLI policy. You should be prepared for the insurance company to scrutinize all of the HR functions. Also, recent employment lawsuits, size of company, geographic location, and type of business or industry all affect the availability and cost of insurance.”[ii]
Insurance is there, in the event we have a need or a claim. Is it worth taking a risk and not having Employment Practice Liability Insurance? Our goal as leaders should be to eliminate the need for the EPLI. This does not mean not purchasing an insurance policy; simply put, we need sound employment practices and consistency throughout the organizations. Do your research and fully understand what your organization needs in EPLI coverage. Look at more than one insurance provider and seek out multiple quotes. Work with a team and/or board of directors to ensure the best decision is made. If you have questions, seek guidance. Insurance is complex and employment lawsuits/settlements can have a major impact on organizations of any size.
Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Businessowners Policy (BOP). An endorsement changes the terms and conditions of the policy. Other companies offer EPLI as a stand-alone coverage.
EPLI provides protection against many kinds of employee lawsuits, including claims of:
Sexual harassment
Discrimination
Wrongful termination
Breach of employment contract
Negligent evaluation
Failure to employ or promote
Wrongful discipline
Deprivation of career opportunity
Wrongful infliction of emotional distress
Mismanagement of employee benefit plans
I highly recommend a thorough review of any employment practices liability insurance as the organization evolves.
10 Important Facts about Employment Practices Liability Insurance
Wrongful acts (as defined by the policy) are typically included for coverage. Intentional acts are generally excluded from EPLI coverage.
Wage and hour damages are excluded from EPLI unless they are explicitly endorsed for inclusion. Even so, there is a sub-limit for defense cost coverage for wage and hour claims, which is usually not more than $100,000.
Punitive damages, which generally exceed simple compensation and is awarded to punish the defendant, can be considered as part of optional coverage under EPLI. However, it is important to note that coverage of punitive damages is subject to state law. In states such as California, for example, EPLI insurance does not typically cover punitive damages. It is important to review the exact policy wording to be used.
The insurance company is usually responsible for selecting the attorney who will defend the lawsuit on behalf of the employer. The attorney is typically chosen from a pre-selected panel of approved attorneys, all of whom specialize in employment law, specifically liability insurance (EPLI). In some cases, the employer’s counsel may be selected if the choice of counsel was approved by the carrier beforehand.
EPLI policies typically include self-insured retention (SIR) instead of a deductible. A SIR is an amount that the policyholder will have to pay out-of-pocket for defense costs and losses during the early stages of an employment liability insurance claim before the insurer is required to pay anything. The SIR differs from the deductible. A deductible is subtracted by the insurer from its total claim payment, which then becomes the responsibility of the policyholder.
An EPLI claim is usually initiated by a written demand for relief, or when charges are brought before an agency such as the EEOC. Claims may also be initiated by the serving of a summons or a lawsuit, or as part of a regulatory investigation. If a claim is not reported when it is first initiated–or within the time frame specified in the policy–there may be a denial of the claim for coverage.
Employment practices liability insurance policies often include a provision known as a “hammer clause”. This clause states that if the insured does not agree to the first settlement opportunity recommended by the carrier, the carrier’s liability may be capped at the amount for which the claim could have been settled. The defense costs up to the date of the settlement opportunity will also be included in the liability.
Breach of contract is usually excluded from coverage unless it is related to other allegations. The reason for this is that there is an assumption that the terms will be carried out if and when the insured enters into a contract. If the terms are not carried out, the assumption is that the company violated the contract intentionally.
The policy form will indicate “claims made” instead of “occurrence”. This means that the policyholder is only eligible to receive benefits if they are covered at the time the claim is filed with the insurance carrier.
It is advisable to notify the carrier of any facts that have surfaced that may require the filing of a future practices liability insurance (EPLI) claim, but for which no claim currently exists. Putting the carrier on notice of an unrealized possibility of a claim does not typically affect the cost of the policy renewal. However, such a notice can secure important protections under the policy in the event that an employment practices liability insurance (EPLI) claim is made at a future date. (Vantreo)
Consideration 1: Risk Management
In determining whether or not to procure an EPLI policy, an employer should initially focus on its internal policies and procedures to assess its risk. An employer should audit its policies and practices; assess the quantity and quality of its training programs; review its claims history and recordkeeping; and consider the history and number of plaintiffs’ verdicts, the size of the awards, the jury climate, and the risk of punitive damages. Having strong anti-harassment, anti-discrimination, and accommodation policies and procedures, an established complaint and investigative procedure, and an employee handbook describing the at-will employment relationship, are essential steps prior to considering or obtaining an EPLI policy. Employment claims may be dramatically decreased or significantly controlled through careful policy development and decision-making, thereby reducing or eliminating the need for EPLI.
Consideration 2: Policy Coverage
EPLI policies differ significantly with respect to policy definitions, exclusions, conditions, and limitations on coverage. Employers must understand what the policy covers, including the insureds, claims covered, and policy exclusions. For example, many policies will not pay for punitive damages, severance, or claims arising from a violation of the Fair Labor Standards Act (“FLSA”), the National Labor Relations Act (“NLRA”), the Occupational Safety and Health Act (“OSHA”), the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Employee Retirement Income Security Act (“ERISA”), the Worker Adjustment and Retraining Notification Act (WARN”), state wage payment statutes, and class actions. Likewise, some policies do not cover front pay, liquidated damages, or retaliation claims. Nor does EPLI typically cover legal advice related to the activities that ultimately may lead to the litigation. Unfortunately, many employers do not scrutinize these coverage issues until after a claim is presented and are surprised to learn they do not have the coverage they thought they purchased.
Consideration 3: Case Control and Selection of Counsel
EPLI policies vary greatly with regard to who has the right to select legal counsel and the duty to defend. When EPLI is involved, an employer’s management may no longer have the final determination about how a claim will be handled; the insurance company often retains the right to select defense counsel and make defense decisions. The legal counsel selected by the insurance company may or may not have experience litigating employment cases. The policy may preclude the employer from using a law firm or attorney of the employer’s choice. As most employers know, retaining the right to have experienced employment attorneys who are familiar with the employer is crucial in potential or realized litigation. Prior to entering into a specific policy, therefore, an employer should negotiate for its right to choose counsel and then ensure that such counsel is approved to defend claims under the policy for the duration of the policy. The ability to negotiate choice of counsel after a policy is in place is almost non-existent.
In some cases, the insurance company may retain the right to determine whether a settlement is appropriate. An employer can negotiate as part of its EPLI policy that the insurer will not settle without the consent of the insured. However, many policies include a “hammer clause,” which caps the insurer’s coverage when the insured refuses to consent to settlement.
Another concern with an insurer having significant control over settlement is when a terminated employee agrees to accept less in terms of a monetary settlement in exchange for being reinstated. Understandably, insurance companies prefer to settle cases for as little as possible (although some understand that reinstating a terminated employee may lead to additional claims at a later date). Therefore, an employer considering EPLI should be certain to retain control over the reinstatement decision.
An additional consideration arises when there is a high deductible. The insurer may push for a quick resolution, thereby decreasing its coverage responsibility even though the employer may prefer to proceed with litigation. Similarly, while high deductibles ensure coverage of substantial losses, they leave an employer practically uncovered against smaller claims.
Consideration 4: Protection
The major advantage of EPLI is the protection it affords (assuming the policy limits are sufficiently high) against what could otherwise be a catastrophic claim that results in an employer’s bankruptcy. Fortunately for all involved, those claims are far more rare than the media suggests. The level of exposure varies from state to state. Organizations with employees in California, New York, Texas, Illinois, or other highly-populated states, or in highly-litigious states, may face increased odds of suffering a catastrophic claim. However, the converse is also true in less populous or less litigious states where an employer may be better served focusing its resources on improving its ability to prevent claims.
Ultimately, companies exploring EPLI should conduct a thorough cost-benefit analysis based on all of the factors outlined herein. Employers should also carefully assess: 1) the deductible level and whether the deductible is per claim or per policy period; 2) the limits of liability that the insurance company is obligated to pay during a given period for any claim or suit; 3) whether there is an aggregated limit over a given time period; 4) whether the EPLI policy provides reimbursement of defense costs only at the end of litigation, leaving the employer with a considerable cash flow obligation throughout the case; and 5) whether the policy is a self-liquidating or “burning limits” policy (i.e., every dollar spent on defense reduces the amount available to settle or otherwise resolve the claim by one dollar).
Identify Required Posters: Create a comprehensive list of all federal, state, and local labor law posters required for each location. Utilize online resources, legal counsel, or labor law poster compliance services to ensure accuracy.Physical Inspection: Conduct a physical inspection of each workplace to verify that all required posters are displayed in conspicuous locations where employees can easily access and read them. Common locations include break rooms, employee entrances, and near-time clocks.Poster Content Review: Carefully examine each poster to ensure it is the most current version. Labor laws are subject to change, and outdated posters can lead to non-compliance. Check for revision dates or contact the relevant government agency to confirm the poster’s validity.Accessibility Assessment: Evaluate the accessibility of the posters for all employees, including those with disabilities. Ensure that posters are displayed at an appropriate height and are readable. Consider providing posters in multiple languages if a significant portion of the workforce speaks a language other than English.Documentation: Maintain detailed records of the audit, including the date of the audit, the locations inspected, the posters reviewed, and any identified deficiencies. This documentation will be valuable for demonstrating compliance and tracking progress in addressing any issues. 
BURR CONSULTING, LLC 