A proposed ordinance has been introduced before the New York City Council to generally prohibit private employers from terminating employees without “just cause” or a “bona fide economic reason.” If enacted, this proposal effectively eliminates the longstanding principle of at-will employment in New York City. The proposed ordinance also would limit the use of electronic monitoring in disciplining or discharging employees.

Most Private Employees Covered With Limited Exceptions

By way of background, presently for fast food employers only the NYC Fair Workweek Law provides, among other things, that such employers cannot terminate or reduce the hours of a fast food worker by more than 15% without “just cause” or a “bona fide economic reason.” The proposed ordinance would expand these protections to employees outside of the fast industry to nearly all private employers and employees in NYC.

Certain exceptions, however, would apply. Employees within a “probation period” not to exceed 30 days from the first date of work would be excluded from the proposed law’s protections. Other exclusions would include construction industry employees; employees covered by a valid collective bargaining agreement that waives rights under the ordinance and provides comparable terms and conditions for the discharge of employees; and employees in a short-term position of no longer than six months (or three years, for a short-term educational position) discharged at the end of the contract of...

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