New York Employers: What You Need to Know About Employment Law Changes in 2026

New York employers entering 2026 face a growing list of employment law changes that demand attention. Some rules are already in effect, while others are set to roll out throughout the year. From wages to leave policies and workplace practices, staying ahead is key to avoiding penalties and ensuring a fair, compliant workplace.

Here’s a breakdown of the updates that matter most and practical steps you can take now.

Changes Already in Effect

1. Minimum Wage Increases (January 1, 2026)

New York raised minimum wages at the start of the year. Employees in New York City, Long Island, and Westchester now earn $17 per hour, and in the rest of the state, the rate is $16 per hour.

Salary thresholds for executive and administrative exemptions also increased. In New York City and Nassau, Suffolk, and Westchester counties, the weekly minimum salary is $1,275 (about $66,300 annually). In the rest of the state, it’s $1,199.10 per week (around $62,350 annually).

2. Trapped at Work Act (December 23, 2025)

This law generally prohibits requiring employees, contractors, interns, and volunteers to repay the cost of job-related training. Enforcement of promissory notes that violate the law can result in civil penalties of $1,000 to $5,000 per violation. Notably, the law does not contain a private right of action for workers, but workers can recover attorneys' fees if sued to enforce such agreements. Moreover, it does not prohibit promissory notes for sums advanced to workers that are not used for training like for the repayment of sign-on bonuses etc.

3. Disparate Impact Claims (December 19, 2025)

New York State now explicitly allows disparate impact claims under the Human Rights Law. Policies that disproportionately affect a protected group can be unlawful, even without discriminatory intent. Employers must show policies are job-related and necessary, or liability may still apply.

Coming Changes in 2026

1. Expansion of NYC Safe and Sick Time (February 22, 2026)

Currently, NYC employers must provide 40-56 hours of paid sick leave annually depending on company size, or 40 hours unpaid for smaller employers. The February expansion significantly broadens both the amount and reasons for leave:

• 32 Hours of Additional Unpaid Leave: Available immediately upon hire, renewed each calendar year.

• Expanded Reasons for Leave: Includes caregiving for a minor or care recipient, school or childcare closures due to public disasters, workplace violence, and legal proceedings related to housing or subsistence benefits.

• 20 Hours Paid Prenatal Leave: Aligns with New York State prenatal leave law.

• Temporary Schedule Change Act Simplification: Employers can now satisfy schedule change requests by allowing employees to use their ESSTA leave instead of managing a separate temporary schedule change process. Employees retain the right to request schedule changes and remain protected from retaliation.

2. Statewide Ban on Credit Checks (April 18, 2026)

Most employers will be prohibited from requesting or using applicants' or employees' credit history for employment decisions. Exemptions apply only in specific situations: positions legally required to undergo credit checks, law enforcement roles, jobs requiring security clearances, and certain non-clerical positions involving trade secrets or national security.

3. NYC Pay Data Reporting (Pending Guidance)

Employers with 200+ employees in NYC will need to submit annual pay data reports, including demographic information. This is designed to identify potential pay disparities based on race and gender.

Staying Ahead Matters

2026 brings one of the most significant waves of employment law updates in recent years. Employers who act now can:

• Ensure compliance with minimum wage and exempt salary thresholds

• Update leave policies and timekeeping systems

• Protect against potential liability under new laws like the Trapped at Work Act and disparate impact claims

• Prepare for reporting requirements and expanded employee rights

  
  

By staying proactive, you reduce risk, avoid penalties, and foster a workplace that is fair and transparent for all employees.

How I Can Help

Navigating employment law changes can be overwhelming. I help employers review policies, implement compliance strategies, and train HR staff so your business stays ahead of evolving obligations.

Click here to schedule a complimentary 15-minute consultation and make sure your workplace is prepared for all 2026 employment law changes.