Employment and labor laws comprise some of the most complex and extensive laws, not only in New York but in other states as well. Therefore, it is very critical for you, as an employer, to be cognizant of what laws, whether local or federal, apply to specific employment issues and jurisdictions, especially owing to the ubiquity of an explosion in lawsuits in the U.S., which has been coherent with a public obsession for litigation, a growing lawyer population, and the enactment of new laws and amendments of others.

Under this context, this blog reviews some of the requirements concerning recordkeeping and record retention for employers under the New York Unemployment Insurance Law (NYUIL), a major employment law in New York. Accordingly, some of the key elements discussed include applicable statutes under this law, including types of records required to be retained by employers and other relevant information for employers concerning compliance with requirements for recordkeeping and the retention of records.

However, it is crucial to mention that the information provided herein does not address requirements for the retention of records when a complaint or charge has been filed by an employee under the NYUIL. Nonetheless, although the requirements may apply to both public and private employers, the information is intended for the latter.

Types of Records that Must be Retained Pursuant to the New York Unemployment Insurance Law (NYUIL)

Every New York employer is required by the NYUIL to keep accurate and true records, which must indicate the date of employment and daily enumeration for (1) every employee, (2) each payroll period, and (3) all employers required to make unemployment contributions. Pursuant to N.Y. Lab. Law § 575(1), records for every employee should indicate name, address, social security number, sum total of remuneration paid, including whether paid by cash, money equivalents, and tips, and any other information that the Commissioner may request as per the regulations and provisions of the NYUIL.

Further, pursuant to N.Y. Comp. Codes R. & Regs. tit. 12, § 472.2(a)(1), records for each payroll period must indicate the starting and ending dates, the total amount of remuneration paid, and total compensation due to paid in terms of unemployment contributions.

Finally, all employers required to make unemployment contributions must maintain copies of all payroll reports, which are (1) pursuant to N.Y. Comp. Codes R. & Regs. tit. 12, § 472.4, supposed to be submitted in relation to the earnings of individual employees and (2) N.Y. Comp. Codes R. & Regs. tit. 12, § 472.3, in relation to the employer’s payroll to the New York Department of Labor.

Duration of Retention Requirements Pursuant to the New York Unemployment Insurance Law (NYUIL)

Pursuant to N.Y. Comp. Codes R. & Regs. tit. 12, § 472.2(a), (b), employers in New York are required to retain such accurate and true records, indicating the date of employment and daily enumeration for (1) every employee, (2) each payroll period, and (3) all employers required to make unemployment contributions for a duration of not less than 3 years.

Penalties and/or Citations Following Failure to Comply with the New York Unemployment Insurance Law (NYUIL)

Pursuant to N.Y. Lab. Law §§ 630, 634, any employer who may deny or refuse to provide access to such records, information, or documents to the Commissioner or his/her appointed representative(s) for inspection or review is guilty of a misdemeanor under the NYUIL and would be required to serve up to 12 months in prison, pay a fine of up to $500, or both, in addition to any other penalties as provided under the New York Labor Law.

Additionally, if the Commissioner inspects records and finds no good cause for an employer’s noncompliance or if the employer is found to have failed to provide accurate and complete payroll records or documents as per the provisions and requirements of N.Y. Tax Law § 674(a)(4), such an employer is liable to pay a fine of 1 dollar up to 1000 dollars for each employee omitted and for every calendar quarter in any 8 consecutive calendar quarters. Additionally, pursuant to N.Y. Lab. Law § 575-a(2), an employer shall be charged $25 for every employee in connection to individual benefit claim(s) when the discovery of noncompliance is made.

Other Key Information for Compliance

In this regard, all employers should, pursuant to N.Y. Lab. Law § 575(1), ensure that such records mentioned above are accurate, true, complete, and readily available and accessible for inspection by the Commissioner or his/her representative(s) for the verification of the count of employees, the payroll periods of employment, and the total sum of remuneration for all employees.

As usual, in case you need further clarification regarding the information shared in this blog post, we, the authoritative force in Employment & Labor Law, serving as primary counsel or cumis counsel and providing diverse legal services in both a traditional and online, web-based environment, whether it be for small or large-scale businesses on a panel or a case-by-case basis, are just a call or email away!

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Isaac T.,

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