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NYC fast-food employers digest new ‘just cause’ firing law

January 2021 employment law letter
Authors: 
Paul J. Sweeney and Angelo D. Catalano, Coughlin & Gerhart, LLP

New York is still considered to be an “employment at will” state. Subject to various federal, state, and local antidiscrimination laws, an employer is lawfully able to hire and fire an employee with or without a reason. That basic management right, however, is now very much in doubt. In early January, New York City (NYC) Mayor Bill de Blasio signed two new laws that will prohibit a fast-food worker from being fired without “just cause” or for a bone fide economic reason and provides the fired worker with the right to arbitrate the decisions. Based on earlier trends, we expect New York State—with a newly elected Democratic majority in both the Senate and Assembly—will jump on the bandwagon. Read on to understand how the new laws may affect your business in the future.

Background

On December 17, 2020, the NYC Council passed a pair of bills to bolster fast-food workers’ rights. The bills were signed into law on January 5, 2021, and most parts go into effect 180 days after signing, or on July 4. The bills apply to fast-food restaurants with more than 30 locations. They also update NYC’s Fair Workweek laws by incorporating the new wrongful discharge provisions into the existing scheduling and access-to-hours hiring protections for fast-food workers.

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