Understanding the 2026 Employment Law Landscape in New York
For employers, these changes create new compliance obligations. Failing to adapt could result in costly penalties, employee lawsuits, and regulatory enforcement actions. For employees, these laws provide enhanced protections and benefits that you should understand and, when necessary, enforce.
This comprehensive guide breaks down every major employment law change taking effect in 2026, organized by effective date. We explain what each law requires, how it affects both employers and employees, and what steps each side should take. If you have questions about your rights or obligations under these new laws, a New York City employment attorney can help you understand your options.
Employment Laws That Took Effect in December 2025
Before addressing what takes effect throughout 2026, two significant laws became effective in December 2025. Both expand employee protections and impose new restrictions on employers.
The “Trapped at Work” Act: Banning Stay-or-Pay Agreements
On December 19, 2025, Governor Hochul signed the Trapped at Work Act into law, making New York the second state in the nation (after California) to ban “stay or pay” clauses in employment. This law took effect immediately upon signing.
The law prohibits “employment promissory notes,” which the statute defines as any agreement requiring a worker to pay the employer money if they leave before a stated period of time. This includes training repayment agreement provisions (often called TRAPs) that require employees to reimburse training costs if they resign within a certain timeframe.
What this means for employees: If you signed an agreement requiring you to repay training costs or other amounts if you leave your job early, that agreement may no longer be enforceable. You have the right to leave your job without being trapped by repayment obligations. If your employer attempts to enforce such an agreement or deduct money from your final paycheck, you may have a legal claim.
What this means for employers: Review all employment contracts, offer letters, and onboarding documents immediately. Any provisions requiring repayment upon early departure must be removed. Continuing to enforce such agreements violates New York law and could expose your business to liability.
Disparate Impact Discrimination Now Codified in State Law
Also effective December 19, 2025, New York formally codified the doctrine of disparate impact discrimination into the Executive Law. This means employers can now be held liable for policies that have a discriminatory effect, even without discriminatory intent.
What this means for employees: If a workplace policy disproportionately affects you because of your race, gender, age, disability, or other protected characteristic, you may have a discrimination claim even if your employer did not intend to discriminate. Examples include physical fitness tests that disproportionately screen out women, scheduling policies that disadvantage employees with caregiving responsibilities, or educational requirements that disproportionately exclude certain racial groups.
What this means for employers: Audit your neutral workplace policies to identify any that could have an unintended disparate impact on protected groups. Be prepared to demonstrate that such policies are job-related and consistent with business necessity.
Minimum Wage, Overtime, and Airport Worker Changes Effective January 1, 2026
The new year brought immediate changes to wage requirements across New York State that affect virtually every workplace, along with significant updates for airport workers.
New York Minimum Wage Increases
As of January 1, 2026, minimum wage rates increased throughout the state. In New York City, Long Island (Nassau and Suffolk Counties), and Westchester County, the minimum wage is now $17.00 per hour. In the remainder of New York State, the minimum wage is $16.00 per hour.
This marks the final year of predetermined minimum wage increases under current law. Beginning in 2027, future minimum wage adjustments will be tied to inflation through the Consumer Price Index.
What this means for employees: Check your pay stubs to confirm you are receiving at least the new minimum wage. If you work in NYC, Long Island, or Westchester and earn less than $17.00 per hour, or elsewhere in New York and earn less than $16.00 per hour, your employer may be violating the law. You have the right to recover unpaid wages plus damages.
What this means for employers: Update payroll systems immediately to reflect the new rates. Ensure all employees, including part-time and temporary workers, receive at least the applicable minimum wage.
Salary Thresholds for Overtime Exemptions
New York’s salary thresholds for the executive and administrative exemptions from overtime also increased on January 1, 2026. To be classified as exempt (not entitled to overtime pay), employees in New York City, Nassau, Suffolk, and Westchester counties must earn at least $1,275 per week ($66,300 annually). Employees in the rest of the state must earn at least $1,199.10 per week ($62,353.20 annually).
These thresholds significantly exceed the federal minimum of $684 per week ($35,568 annually). New York City’s threshold is nearly double the federal standard.
What this means for employees: If you are classified as “exempt” and do not receive overtime pay, verify that your salary meets the New York threshold (not just the lower federal threshold). If you earn less than $66,300 in the NYC metro area or $62,353.20 elsewhere in New York, you may be entitled to overtime pay for hours worked beyond 40 per week, regardless of your job title.
What this means for employers: Review all exempt employee classifications. Relying on the federal threshold when classifying employees in New York creates significant liability for unpaid overtime.
Tip Credit and Cash Wage Updates
Tipped employees in the hospitality industry should note new cash wage and tip credit amounts. For food service workers (wait staff, bartenders, captains, bussing personnel) in NYC, Long Island, and Westchester, the minimum cash wage is now $11.35 per hour with a tip credit of $5.65. In the rest of the state, food service workers must receive at least $10.70 per hour in cash wages with a $5.30 tip credit.
For other tipped service employees, the cash wage in NYC, Long Island, and Westchester is $14.15 per hour with a $2.85 tip credit. In the remainder of New York, these employees must receive $13.30 per hour with a $2.70 tip credit.
What this means for employees: If you work for tips, ensure your employer is paying you at least the minimum cash wage. Your tips combined with your cash wage must equal at least the full minimum wage for every hour worked. If they do not, your employer must make up the difference.
Healthy Terminals Act: New Protections for Airport Workers
Also effective January 1, 2026, significant amendments to the Healthy Terminals Act took effect. These changes reshape wage and benefit obligations for workers at JFK and LaGuardia airports, bringing an estimated 15,000 additional workers under the law’s protections.
The amended law ties wage, benefit, and leave obligations to the federal Service Contract Act (SCA) framework through annual designation by the New York State Department of Labor. Covered employers must now pay the higher of the Port Authority minimum wage or SCA rates. The amendments also expand coverage to include part-time workers who spend at least 50% of their work week at a covered airport location.
What this means for employees: If you work at JFK or LaGuardia in roles such as ramp work, cargo handling, concessions, retail, or other airport services, you may now be covered by enhanced wage and benefit protections. Covered workers are entitled to paid holidays and paid vacation days ranging from two to five weeks depending on seniority.
What this means for employers: Employers operating at JFK and LaGuardia must determine whether they are covered by the amended Healthy Terminals Act. Covered employers must display the required poster and ensure compliance with the new wage, benefit, and paid leave requirements. Small employers with 10 or fewer employees may qualify for an exemption.
Paid Family Leave and Additional January 2026 Updates
Beyond wages, January 2026 brought changes to New York’s Paid Family Leave program that affect both the benefits employees receive and the contributions they pay.
New York Paid Family Leave Adjustments
The New York Paid Family Leave program provides eligible employees up to 12 weeks of job-protected leave to bond with a new child, care for a family member with a serious health condition, or assist when a family member is deployed on active military service.
For 2026, the maximum weekly benefit increased to $1,228.53 (up from $1,177.32 in 2025). Employees taking Paid Family Leave receive 67% of their average weekly wage, capped at 67% of the New York State Average Weekly Wage. The employee contribution rate increased to 0.432% of gross wages, with a maximum annual contribution of $411.91.
What this means for employees: You have access to meaningful wage replacement when you need to take leave for family reasons. If you need to bond with a new child or care for a seriously ill family member, you can take up to 12 weeks of job-protected leave while receiving partial wage replacement. Your employer cannot retaliate against you for using this benefit.
What this means for employers: Update payroll systems to deduct the correct contribution amount from employee wages. Ensure your PFL policy and employee notices reflect the current benefit amounts.
Meal Credits and Uniform Maintenance Allowances
Employers who provide meals or require uniforms should note updated allowances. In NYC, Long Island, and Westchester, employers may deduct up to $4.05 per meal for food service workers, $4.75 for service employees, and $5.80 for non-service employees.
When employers require uniforms but do not launder them, they must pay a uniform maintenance allowance. In NYC, Long Island, and Westchester, this ranges from $10.10 to $21.10 per week depending on hours worked.
What this means for employees: If you are required to wear a uniform and your employer does not launder it, you should receive a uniform maintenance allowance. Check your pay stubs to confirm you are receiving this payment if applicable.
Major Changes to NYC’s Earned Safe and Sick Time Act in February 2026
New York City workers and employers face significant changes when amendments to the Earned Safe and Sick Time Act (ESSTA) take effect on February 22, 2026. These changes substantially expand leave entitlements.
New 32-Hour Unpaid Leave Requirement
The amendments require NYC employers to provide employees with at least 32 hours of unpaid safe and sick time in addition to existing paid leave requirements. This unpaid leave must be available immediately upon hire and replenished at the start of each calendar year.
What this means for employees: Starting February 22, 2026, you are entitled to an additional 32 hours of unpaid leave on top of your paid sick time. This provides additional flexibility when you need time off for health or safety reasons but have exhausted your paid leave.
Expanded Reasons for Using Leave
The amendments expand the permissible reasons for using safe and sick time. Employees may now use leave for public disasters that trigger business closures, school or child care closures, directives to remain indoors that prevent employees from reporting to work, workplace violence situations, care for a minor child or care recipient, and attendance at certain legal or administrative proceedings.
What this means for employees: You have more flexibility to use your leave for a wider range of circumstances. If a public emergency closes your child’s school or requires you to shelter in place, you can use your safe and sick time without fear of discipline.
Codification of 20-Hour Paid Prenatal Leave
The ESSTA amendments formally codify and align with New York State’s paid prenatal leave requirements that took effect statewide on January 1, 2025. Under this requirement, employees are entitled to 20 hours of paid leave per 52-week period for prenatal healthcare services, including doctor appointments, medical procedures, monitoring, testing, and discussions with healthcare providers related to pregnancy. This paid prenatal leave is in addition to existing paid sick and safe time.
What this means for employees: If you are pregnant and work in New York, you are entitled to 20 hours of paid leave specifically for prenatal care. This leave is available immediately upon hire and is separate from your regular sick leave. Your employer cannot require you to use other leave types for prenatal appointments.
What this means for employers: Update your leave policies, employee handbooks, and ESSTA notices before February 22, 2026. You must track the new unpaid leave bank separately and ensure compliance with prenatal leave requirements. The separate Temporary Schedule Change Act (TSCA) has been consolidated into ESSTA, so remove any standalone TSCA policies. Employers must set a minimum usage increment of one hour for prenatal leave and comply with all notice and recordkeeping requirements.
Mandatory Retirement Savings Program Registration in March 2026
Beginning in March 2026, the New York State Secure Choice Savings Program will require participation from many employers who do not currently offer retirement benefits.
Which Employers Must Participate
The Secure Choice program applies to private employers who meet all three criteria: the business has been operating for at least two years, the employer had 10 or more employees in New York during the prior calendar year, and the employer does not already offer a qualified retirement plan. Employers meeting these criteria must either register for the program or certify their exemption through the program website. Deadlines for registration or certification vary based on employer size.
How the Program Works
Secure Choice operates as an automatic-enrollment Roth IRA for employees who lack access to an employer-sponsored retirement plan. Employees age 18 and older are automatically enrolled when their employer participates, though employees may opt out at any time. There are no fees for employers. Employees pay a modest annual fee of $28.
What this means for employees: If your employer does not offer a 401(k) or other retirement plan, you may soon be automatically enrolled in a state-sponsored retirement savings program. This makes it easier to save for retirement through payroll deductions. You can opt out if you prefer not to participate.
What this means for employers: Determine whether your business must register. If you already offer a retirement plan, certify your exemption. If you do not, prepare to facilitate employee enrollment and process payroll deductions.
New Restrictions on Credit Checks for Employment Effective April 2026
On April 18, 2026, New York State will significantly restrict employers from using consumer credit history in employment decisions. This extends protections similar to those that have existed in New York City statewide.
What the Law Prohibits
Under the new law, most employers will be barred from requesting, using, or making employment decisions based on an applicant’s or employee’s consumer credit history. The law defines consumer credit history broadly to include information from credit reports, credit scores, or information obtained directly from applicants about credit accounts, bankruptcies, liens, or judgments. Improper use of credit reports will constitute an unlawful discriminatory practice under the New York State Human Rights Law.
What this means for employees: Your credit history should not determine whether you get hired, promoted, or retained in most jobs. If you have struggled financially due to medical bills, student loans, or other circumstances, employers generally cannot hold that against you. If an employer denies you a job or takes adverse action based on your credit history after April 18, 2026, you may have a discrimination claim.
Narrow Exemptions
The law provides limited exemptions for certain positions: those required by state or federal law to use credit history, peace officers and police officers, positions with law enforcement or investigative functions, non-clerical positions with regular access to trade secrets or national security information, and positions with duties to modify digital security systems.
What this means for employers: Audit your hiring practices before April 18, 2026. If you currently use credit checks, determine whether the positions genuinely qualify for an exemption. Update job applications, background check authorizations, and train hiring personnel on the new restrictions.
Healthcare Workplace Violence Prevention Requirements Effective September 2026
On December 12, 2025, Governor Hochul signed into law a bill requiring hospitals and nursing homes to implement comprehensive workplace violence prevention programs. This law takes effect in September 2026 (280 days after signing).
What Healthcare Facilities Must Do
Covered facilities must establish a written workplace violence prevention plan to protect healthcare workers, patients, residents, and visitors from violence and verbal or physical abuse. Facilities must conduct an initial workplace safety and security assessment, develop a safety plan addressing identified threats, and update this assessment annually.
The law requires employee involvement in developing the safety plan. Facilities must seek input from employees and union representatives and share a detailed written summary of the plan with all affected workers. Staff must receive adequate training on safety policies and procedures, including handling disruptive or violent situations.
Additionally, emergency departments of general hospitals in cities or counties with a population of one million or more must have at least one security personnel present at all times.
What this means for employees: If you work in a hospital or nursing home, your employer must develop and share a workplace violence prevention plan with you. You have the right to participate in developing this plan and to receive training on safety procedures. If your facility fails to implement required protections, you may have recourse through regulatory complaints.
What this means for employers: General hospitals and nursing homes must begin developing comprehensive workplace violence prevention programs now to meet the September 2026 deadline. This includes conducting facility assessments, creating written plans, training staff, and ensuring adequate security personnel in high-risk areas.
NYC Pay Data Reporting: Requirements on the Horizon
On December 4, 2025, the New York City Council overrode Mayor Adams’ vetoes and enacted new pay data reporting requirements that will affect large employers in the coming years.
What the Law Requires
Private employers with 200 or more employees working in New York City will be required to submit annual pay data reports including employee salaries and rates of pay broken down by job title, sex, and race/ethnicity. The city will use this data to conduct pay equity analyses identifying compensation disparities based on gender, race, and ethnicity.
All workers count toward the 200-employee threshold, including full-time, part-time, and temporary employees. Where headcount fluctuates, the threshold is measured by the highest number of employees concurrently employed at any point during the reporting year.
Implementation Timeline
The mayor has until December 4, 2026 to designate a city agency to oversee the new requirements. That agency then has up to one year to develop the reporting system and forms. Once finalized, employers will have one year to submit their initial reports. This means the earliest reporting obligations would begin in late 2028, though employers should prepare now by auditing their compensation practices.
What this means for employees: While reporting requirements are not yet active, this law signals increased focus on pay equity in New York City. If you believe you are being paid less than colleagues doing similar work due to your gender, race, or ethnicity, you may already have legal claims under existing discrimination laws.
What this means for employers: Begin auditing compensation practices now to identify and address any pay disparities before reporting becomes mandatory. Ensure job titles accurately reflect roles and responsibilities, and document legitimate, non-discriminatory reasons for any pay differences between employees in similar positions.
Continuing Obligations: Freelance Worker Protections
Beyond the new laws taking effect in 2026, employers and employees should remain aware of significant employment laws that became effective in recent years.
Freelance Isn’t Free Act
Since August 28, 2024, New York’s Freelance Isn’t Free Act has provided statewide protections for independent contractors. For any engagement valued at $800 or more, the hiring party must provide a written contract. Payment must be made within 30 days of work completion unless the contract specifies otherwise.
What this means for freelancers: You have the right to a written contract and timely payment. If a client fails to pay you on time or in full, you can recover double the amount owed. Retaliation for asserting your rights is prohibited.
What this means for businesses hiring freelancers: Ensure you provide written contracts for all freelance engagements of $800 or more and pay freelancers within the agreed timeframe. Violations carry significant penalties.
What Should You Do Next?
The 2026 employment law changes create both new obligations and new protections. Here is what each side should prioritize.
For Employees: Know and Protect Your Rights
Review your pay stubs to confirm you are receiving at least the current minimum wage and, if applicable, the correct tip credit. If you are classified as exempt from overtime, verify your salary meets New York’s threshold, not just the lower federal standard. Keep records of your hours worked.
Understand your leave rights. NYC employees gain significant new benefits in February 2026, including additional unpaid leave and expanded reasons to use leave. If you are pregnant, remember you have 20 hours of paid prenatal leave available statewide. If your employer denies you leave you are entitled to or retaliates against you for using it, that may violate the law.
If you believe your employer has violated your rights, whether by underpaying you, misclassifying you, denying you leave, or discriminating against you, document the situation and consult with an attorney promptly. Many employment claims have deadlines for filing.
For Employers: Audit and Update Your Practices
Review employment agreements for prohibited stay-or-pay clauses. Update payroll systems for new wage rates and PFL contributions. Reclassify any exempt employees who no longer meet salary thresholds. If you operate at JFK or LaGuardia, verify compliance with Healthy Terminals Act amendments.
Before February 22, 2026, NYC employers must revise ESSTA policies to add the 32-hour unpaid leave bank and ensure prenatal leave compliance. By March 2026, determine Secure Choice obligations. Before April 18, 2026, audit and update hiring practices regarding credit checks. Healthcare facilities should begin workplace violence prevention planning now for the September 2026 deadline.
Employment law in New York changes frequently. Reviewing policies quarterly and working with experienced employment counsel helps ensure ongoing compliance and reduces litigation risk.
Get Help with Your Employment Law Questions
The employment law changes taking effect in 2026 represent some of the most significant updates New York has seen in recent years. Whether you are an employer trying to stay compliant or an employee whose rights may have been violated, understanding these laws is essential.
At Lipsky Lowe LLP, our attorneys bring over 40 years of combined experience in employment law to help both businesses and workers navigate these complex requirements. Founded by attorneys from one of the nation’s premier labor and employment firms, we understand the employment relationship from both sides. Doug Lipsky has been recognized as a New York Super Lawyer every year since 2011, and our team has recovered millions of dollars for employees in discrimination, harassment, retaliation, and wage cases.
Whether you are an employer who needs to update policies and agreements, or an employee who believes your rights have been violated, we can help. Contact Lipsky Lowe LLP today to schedule a free consultation.