In a surprising but welcome development for New York state employers, the New York State Department of Labor (“DOL”) announced that it will not implement new employee scheduling rules, otherwise known as the DOL’s “call-in pay” regulation.

As employers may remember, the DOL published proposed regulations in late 2017 that would have required employers to pay additional wages to employees who “call-in” for their work schedule or have “on call” work schedules. The proposed regulations were met with fierce opposition from the business community across the state.

A year later—in late 2018—the DOL revised its proposed regulations after reviewing feedback received during the public comment period. The revised 2018 proposal addressed some of the questions raised by the DOL’s 2017 proposal, but remained problematic for employers across various industries. Still, most employers anticipated final rules would be enacted this year.

On February 27, 2019, however, the DOL stated that it will not move forward with implementing the proposed rules. The DOL statement noted that “it was clear the Department’s initial intent to support workers while being fair to businesses was viewed as a one-size-fits-all approach that was not appropriate for every industry. Revised rules, issued in late 2018, were praised by opponents and criticized by supporters.”

The DOL indicated that it will allow the proposed regulations to expire but will “re-evaluate” the rules in the future. While it is unclear what future action DOL may undertake on this topic, the DOL’s February 27 announcement is good news for the many employers that voiced serious concerns with the DOL’s proposal.

This alert does not purport to be a substitute for advice of counsel on specific matters.

Harris Beach has offices throughout New York State, including Albany, Buffalo, Ithaca, Melville, New York City, Rochester, Saratoga Springs, Syracuse, Uniondale and White Plains, as well as New Haven, Connecticut and Newark, New Jersey.