NYC Fast Food Employment Laws Go into Effect July 2021

Keeping Clients Apprised of New Employment Laws

Several NYC fast food employment laws that the New York legislature passed go into effect on July 4, 2021.

Such changes going into effect are significant for the fast food industry. The new laws favor employees rather than employers. At will employment no longer applies, which means employers lose the ability to fire an employee for any reason at all. (Note: illegal reasons, such as discrimination are prohibited under at will employment.) From this point forward, the fast food employer must show “just cause” to fire an employee, reduce their hours by 15% of their regular schedule or any work week schedule. They also cannot suspend employees indefinitely.

How Does the New Employment Law Affect Business Policies?

Employers must adopt the following policies:

  • Policies for conduct
  • A discipline policy that covers minor infractions
  • A program that provides adequate training on the employer’s standards
  • Fair and objective investigations for job misconduct and job performance
  • Written explanations for job termination with precise reasons

Layoffs due to economic reasons would require laying off senior employees, also referred to as reverse seniority, before terminating newer employees. Employees could file for arbitration to dispute whether the employer had established “just cause” for the layoff.

What Employers Qualify as Fast Food Industry?

The law applies to all New York City fast food employers. The law defines fast food as establishments where:

  • The main purpose is serving drink or food items
  • Patrons select items and pay before eating and they consume items on the premises
  • The business is part of a chain or is one of 30 or more national establishments

Even though a franchise may be only one of two establishments in NYC, it can still fall under the definition of fast food employer if the chain has more than 30 franchises nationwide.

Under the new law, employers must use a progressive discipline policy. A progressive discipline policy, as the name implies, would have disciplinary measures that range from mild to more severe. The more severe discipline would only occur after milder forms of discipline had been used to correct the employee. Job termination would be the most severe form of discipline.

Do You Have Questions about Fast Food Employment Laws?

Stephen D. Hans & Associates, P.C. can provide you with experienced legal guidance. We are glad to answer your questions and explain how laws apply to the fast food industry in New York City. Call (718) 275-6500 to arrange an appointment.