For employers who are situated along the Connecticut-New York state line, keeping updated on the employment developments in both states is a challenging endeavor. This is particularly true if the company’s sales force or business is dependent on servicing both areas.
Connecticut employers with New York employees, should be aware of a number of recent amendments to New York Labor and Executive Laws. These include:
(1) the requirement of a written agreement with commissioned salespersons;
(2) a change in the wage threshold for certain exempt employees;
(3) increased monetary fines for meal and rest period violations;
(4) leave for blood donors; and,
(5) narrowed criminal conviction inquiry.
My fellow EBG colleagues have prepared an excellent summary of these changes in an alert posted yesterday.
For many employers, the new law on commissioned employees will be the most significant. The provision applies to all salespersons whose earnings are based, in whole or in part, on commissions from merchandise, real estate, insurance, securities, and other products or services. As my colleagues have stated, the new law now states:
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The employer and the commission salesperson must enter into a written document describing the terms of employment.
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The document must be signed by both the employer and the employee.
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The written document must describe how the wages, salary, commissions, draw-against commissions, if any, and all other monies earned and payable are calculated.
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The frequency of reconciliation should also be included, if the agreement provides for a recoverable draw.
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The document must also describe how commissions are paid upon termination of employment.
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The document must also be kept on file by the employer for at least three years.
It is easy to confuse the differences between the two states’ laws. For human resources professionals, its best to keep a running list of the applicable laws that may apply for certain issues.