When a licensed employee leaves your New York agency
New York sets deadlines for final pay and notice. The client handoff is up to you.
When an employee leaves a New York agency, pay final wages by the regular payday for that pay period (Labor Law § 191). Give written notice of the termination date and when benefits end within five working days (Labor Law § 195(6)). If you end a licensed person's employment for cause, Insurance Law § 2112(d) requires a statement to DFS within 30 days. Then end carrier access, AMS logins and hand off their accounts.
What New York law requires
| Requirement | Deadline | Law |
|---|---|---|
| Final wages | By the regular payday for the pay period when employment ended | Labor Law § 191(3) |
| Written notice of termination date and end of benefits | Within 5 working days | Labor Law § 195(6) |
| Statement to DFS, if terminated for cause | Within 30 days; copy to the person within 15 days after | Insurance Law § 2112(d) |
The agency checklist
Day one
- Close system access: AMS, email, carrier portals, rating tools and phones.
- Tell each carrier so their producer codes and logins are closed.
- Reassign every account to a named person.
First week
- Send the written notice of termination date and benefit end dates.
- Walk the open items: renewals in the next 90 days, pending endorsements, open quotes and claims follow-ups.
- Tell key clients who their new contact is.
By payday
- Pay final wages, including any earned commission owed under your pay plan.
- File the DFS statement within 30 days if the termination was for cause.
Free tool: plan an offboarding with a step-by-step handoff for their book. About 4 minutes.
The part the law doesn't cover
The legal steps take an afternoon. The handoff takes longer. Renewals, notes in someone's head and half-finished endorsements are where clients slip. See how to keep client knowledge when staff leave.
Where Humai fits
Humai matches U.S.-licensed agents who hold New York licenses, checked in NIPR, to pick up the desk in your AMS under your agency's name. Per task, part-time or full-time, while you hire or decide you don't need to.
Questions agency owners ask
When is a final paycheck due in New York?
No later than the regular payday for the pay period in which the employment ended. If the employee asks, it must be mailed.
Do I have to give written notice when someone leaves?
Yes. Labor Law § 195(6) requires written notice of the exact termination date and the date benefits end, no more than five working days after the termination.
Do I have to tell DFS when a licensed employee leaves?
If you end the relationship for cause, Insurance Law § 2112(d) requires a statement of the facts to DFS within 30 days, and a copy to the person within 15 days after that.
What about their carrier appointments?
Tell each carrier the person has left so their access and producer codes can be closed.
How do I keep their clients from slipping?
Assign every account to a named person on day one, and walk the open items: renewals, pending endorsements and quotes in progress.
Sources
- NY Labor Law § 191 (payment of wages)
- NY Labor Law § 195 (notice and record-keeping)
- NY Insurance Law § 2112 (appointments and terminations)
Licensing rules differ by state. This article is general information, not legal advice. Check with your state's department of insurance.