Follow-Up Audit Report on the Department of Consumer and Worker Protection’s Enforcement of the New York City Earned Sick Time Act

Audit Finding and Conclusion:

The objective of this audit was to determine the extent to which the 21 recommendations issued in the 2019 audit report have been implemented.

This follow-up audit assessed the implementation of recommendations made in the Audit Report on the Department of Consumer and Worker Protection’s Enforcement of the New York City Earned Sick Time Act (Audit # ME18-070A), issued on June 28, 2019. That audit was conducted to determine whether the Department of Consumer and Worker Protection (DCWP) had adequate controls in place to effectively enforce the Earned Safe and Sick Time Act (ESSTA).^[1] That audit found weaknesses in DCWP’s monitoring of restitution and fine payments and in its intake, investigative, and litigation processes, and that DCWP lacked a process for obtaining complainant feedback.

DCWP enforces key consumer protection licensing, workplace laws, and other related business laws. In that role, DCWP implements, administers, and enforces ESSTA. The goal of ESSTA is to enable all eligible employees to use safe and sick leave to care for themselves or ailing family members (including spouses, children, grandchildren, grandparents, and siblings) without threatening their economic security. Employers with five or more employees who work the prescribed number of hours must provide paid safe and sick leave, while employers with one to four employees who work that many hours must provide unpaid safe and sick leave. ESSTA also includes provisions prohibiting employer retaliation for employees’ use of safe and sick leave or for filing a DCWP complaint alleging ESSTA Violations.

This follow-up audit found that DCWP improved its monitoring of restitution and fine payments and its intake, investigative, and litigation processes relating to the enforcement of the City’s Paid Sick Leave Law. Specifically, of the 21 recommendations made in the initial audit, this follow-up audit found that 19 have been implemented and two are no longer applicable. This follow-up audit makes no new recommendations to DCWP.

Agency Response

In its response, DCWP agreed with the audit’s findings and stated that it appreciated the Comptroller’s Office’s acknowledgement of its efforts to improve enforcement of ESSTA.

[1] ESSTA is set forth in Title 20, Chapter 8, of the New York City Administrative Code and went into effect on April 1, 2014.