New York Requires Written Separation Notice for Terminated Employees

What Changed

On September 14, 2023, New York Governor Hochul signed Assembly Bill A00398A / Senate Bill S04878A, amending Section 590 of the New York Labor Law. The new law requires employers to provide written notice to any employee whose employment is terminated, informing them of their right to apply for unemployment insurance benefits.

Additionally, employers must provide a completed record of employment to each worker who is:

• Permanently, indefinitely, or temporarily laid off

• Discharged

• Quits

• Has their hours reduced to 30 or fewer per week

The notice must be provided at the time of separation.

Who Is Affected

All New York employers, regardless of size, are subject to this requirement. The obligation applies to every employee separation event, including voluntary resignations, involuntary terminations, layoffs, and hour reductions.

Where It Applies

New York statewide.

When It Takes Effect

November 13, 2023. Employers should already be providing this notice.

Why It Matters

New York previously required employers to notify terminated employees about unemployment benefits, but the new law expands the scope and specificity of the requirement. The inclusion of hour-reduction scenarios and the requirement for a completed record of employment are new elements that may catch employers off guard.

Failure to provide the required notice could expose employers to penalties under New York Labor Law and could complicate unemployment insurance proceedings.

The Humareso Take

This is a straightforward administrative requirement, but it has teeth. If your offboarding process does not already include a written unemployment benefits notice, it needs to now. The hour-reduction trigger is the piece most employers miss — if you cut someone from full-time to part-time (30 hours or fewer), that qualifies. Build this into your separation checklist and your hour-reduction workflow so it does not fall through the cracks.

Recommended Action Steps

1. Update your offboarding checklist to include the required written notice of unemployment benefits eligibility for all separation events.

2. Create or obtain the required notice form — the New York Department of Labor provides a template (Form IA 12.3).

3. Train managers and HR staff on the expanded notice requirement, including the trigger for hour reductions to 30 or fewer per week.

4. Document delivery of the notice in each employee's personnel file as proof of compliance.

5. Contact your Humareso representative if you need help integrating this requirement into your separation and offboarding procedures.