Author: Frank V

A new consumer protection law has gone into effect on February 11, 2024. This new law will amend and clarify New York’s existing credit card surcharge law. The.

The law, signed by Governor Hochul on December 13, 2023, provides: Limiting credit card surcharges to the amount charged to the business by the credit card company; and

• Requiring businesses to post before checkout:
  • the total price of an item or service inclusive of the credit card surcharge; or
  • a two-tiered pricing option, which requires the credit card price to be posted alongside the cash price.

The following practices and examples comply with the law’s credit card surcharge notice requirements. See the Department’s Credit Card Surcharge Guidance Document and educational video for additional examples:

DO:

• The business lists the higher credit card price next to a lower cash price.
• The business lists the credit card price for items and services, then lets customers know they will receive a discount for using cash.
• The business changes all prices to the credit card price.

DON’T:

• The business posts a sign on the door and at the register stating an additional 3.9 percent surcharge will apply for credit card purchases.
• “This business has a 4 percent cash discount incentive built into all pricing. Any purchases made with a credit or debit card will not receive the cash discount and an adjustment in cost will be displayed on your receipt.”
• A convenience fee, service fee, administration fee, non-cash adjustment, technology fee, processing fee, etc., is charged to credit card users and added as a separate line item on a customer receipt.
• The price tag of an item shows “$10.00, + 4 percent if paying with a credit card.”

NOTE: This law does not apply to debit cards.

New York City Mayor Eric Adams, New York City Police Department (NYPD) Commissioner Edward A. Caban, New York City Department of Small Business Services (SBS) Commissioner Kevin D. Kim, and New York City Office of Nightlife (ONL) Executive Director Jeffrey Garcia have announced the launch of “Coordinating a United Resolution with Establishments” (CURE) – a new process for NYPD, SBS, and ONL to improve public safety responses to nightlife establishments and more equitably engage with nightlife business owners.

The new CURE process replaces the NYPD’s “Multi-Agency Response to Community Hotspots” (MARCH) The new CURE process requires precincts to establish direct, in-person communication with business owners and managers in conjunction with ONL, making them aware of potential violations and conditions of concern, and providing multiple opportunities for local business owners to correct issues before enforcement actions are taken.

In cases involving complaints from local residents, ONL’s Mediating Establishment and Neighborhood Disputes NYC free mediation program will be engaged to help improve neighborhood relations through the support of neutral, third-party mediation. The program is administered in partnership with the New York City Office of Administrative Trials and Hearings.

As part of the new procedure, NYPD will not initiate city or state interagency inspections outside of the new CURE process. Only agencies relevant to issues observed at CURE-involved establishments may be included in joint-inspection operations with the NYPD, and only on an “as-needed” basis. This procedure does not limit NYPD from any necessary real-time response to address immediate public safety concerns. Furthermore, agencies that have previously participated in MARCH operations, such as the FDNY, DOB, DOHMH, DEP, and SLA will continue to maintain their regular independent inspection processes to maintain compliance and ensure safety.

For more information, go to https://nyc-business.nyc.gov/nycbusiness/business-services/legal-assistance/mediating-establishment-and-neighbor-disputes-mend-nyc

NY DOL has finalized new rates for minimum wage, tip credit, meal credit, uniform maintenance pay and exempt employee salary thresholds, effective with the start of the new year. The new rates are summarized  by Fox Rothchild at
https://www.foxrothschild.com/publications/ny-dol-issues-proposed-adjustments-to-the-tip-credit-in-accordance-with-the-upcoming-increase-in-minimum-wage

Timothy A. Gumaer, Glenn S. Grindlinger and Carolyn D. Richmond from that firm
https://www.foxrothschild.com/publications/ny-dol-finalizes-changes-to-tip-credit-meal-credit-uniform-maintenance-pay-and-exempt-employee-salary-thresholds report that “For non-exempt (i.e., hourly) employees, employers should prepare new rate of pay forms that accurately reflect the new minimum wage and any changes to the tip credit and/or meal credit, where applicable.

“Employers must also be aware of the changes to uniform maintenance pay and be ready to comply with those new rates where necessary. Employers should also work with their payroll providers to ensure that their pay stubs accurately reflect these changes.For exempt (i.e., salaried) employees, employers should review these new salary requirements and ensure that those employees are being paid at least the new minimum weekly amount. However, as a reminder, the salary threshold is only one part in determining whether an employee is properly categorized as exempt from overtime requirements; these employees must also perform particular duties to also be exempt from overtime, depending on their position.

“Employers should thus take the time to review those duties performed by their exempt employees to ensure that they are appropriately categorized as being exempt from overtime requirements.”