Welcome to Issue #21 of The Compliance Brief. Every Tuesday I break down the HR and labor law updates that actually matter to small businesses — in plain English, no legal jargon.

New York Just Gave Every Employee the Right to Their Personnel File

Governor Hochul signed a new law making New York the 20th state to require employers to give workers access to their own personnel records — and unlike many state laws, this one applies to every employer, with no small-business exemption.

Starting November 8, if a current or former employee submits a written request, you'll have five business days to provide a free copy of their personnel file. Employees get at least two reviews per year, and if you place negative information in someone's file, you must notify them within 10 days and allow a written rebuttal. Records have to be retained for three years after separation — and the definition of "personnel record" is broad enough to include files held by third-party vendors on your behalf, like a payroll or benefits provider.

Action step: If you have New York employees, start building a simple process now: who receives these requests, how you'll pull a complete file (including vendor-held records), and how you'll track the five-business-day clock.

1. Three New DOL Opinion Letters Clarify Everyday Wage Questions

The DOL released guidance confirming that managers who meet the executive duties test can't share in tip pools — even when they also work tipped shifts. Separately, a 60-minute unpaid meal period stays unpaid even if employees spend a few minutes walking to a break area, and exempt nonprofit employees can volunteer for their own employer outside work hours, as long as it's genuinely voluntary and different from their normal job duties.

2. A New W-2 Reporting Requirement Is Coming for Overtime

Starting this year, qualified overtime pay must be reported separately on Form W-2 so employees can claim the new "no tax on overtime" deduction. If your payroll system doesn't already separate this out, now's the time to loop in your provider before year-end filing.

3. Butterball Pays $230K Over an Inflexible Attendance Policy

The EEOC settled with Butterball after a long-time employee was fired for violating a no-fault attendance policy while undergoing chemotherapy. The lesson: attendance policies that don't allow for individualized ADA accommodations — even "neutral" ones — can create real liability.

✅ Start building a personnel-records request process for New York employees ahead of November 8

✅ Confirm tip-pool practices exclude anyone who meets the executive duties test

✅ Check with your payroll provider on separate W-2 reporting for qualified overtime

✅ Review your attendance policy for a documented ADA accommodation process

New York State's guidance on the new personnel records law outlines request procedures and retention requirements: dol.ny.gov

That's it for this week. Short, actionable, no fluff.

If this was useful, forward it to another small business owner who could use it.

See you next Tuesday.

The Compliance Brief thecompliancebriefhq.com

This is for informational purposes only and does not constitute legal advice.