A PEO (Professional Employer Organization) is an excellent solution for small businesses in New York to manage HR, payroll, and compliance with the state's complex labor laws.
New York has some of the most stringent regulations around minimum wage, overtime, paid sick leave, and employee classification, which can be overwhelming for small businesses without dedicated HR resources.
Here’s a brief overview of some key laws and regulations specific to New York.
PEOs in New York assist businesses in adhering to various labor laws, including:
- Minimum Wage:
- New York City, Long Island, and Westchester County: $16.00 per hour (effective January 1, 2024).
- All Other New York State Counties: $15.00 per hour (effective January 1, 2024).
- Overtime: Overtime applies in New York for hours worked over 40 in a workweek at a rate of 1.5 times the employee's regular hourly wage.
- Sick Leave: Employers must provide paid sick leave. Employees are entitled to accrue up to 40 hours of paid sick leave per year.
- Meal and Rest Breaks: New York law requires employers to provide meal breaks to employees working more than 6 hours, typically a 30-minute unpaid break.
PEOs in New York provide access to competitive employee benefits such as:
- Health Insurance: Leveraging the PEO’s group purchasing power, small businesses can access health insurance plans at lower rates than they could independently.
- Retirement Plans: PEOs often offer retirement options like 401(k) plans, which can be beneficial for small businesses looking to provide a retirement savings option without significant administrative burden.