New York state and New York City (NYC) continue to advance an
extensive and evolving framework of workplace regulations. Several
new statutory and regulatory developments will impact employers
across industries in 2026. These changes reflect the ongoing focus
on worker protections, workplace transparency, and compliance
enforcement. This client alert highlights notable updates, outlines
key obligations for employers, and identifies action items to help
organizations prepare for the year ahead.
Minimum Wage Rate Increases
New York’s minimum wage increases to US$17.00/hour for
employees in NYC, Long Island, and Westchester County, and to
US$16.00/hour elsewhere in the state. Other adjustments include
higher rates for overtime, tipped food-service workers’ cash
wages, overtime for tipped employees, and tip credits. Both the
minimum wage and cash wage for tipped food-service workers have
also increased in New York.
NYC, Long Island, and Westchester
County
New Rate: Effective 1 Jan. 2026
Minimum Wage
US$17.00
Minimum Overtime Rate
US$25.50
Cash Wage to Tipped Food-Service Workers
US$11.35
Tip Credit for Food-Service Workers
US$5.65
Cash Wage to Service Employees
US$14.15
Tip Credit for Service Employees
US$2.85
Remainder of New York State
New Rate: Effective 1 Jan. 2026
Minimum Wage
US$16.00
Minimum Overtime Rate
US$24.00
Cash Wage to Tipped Food-Service Workers
US$10.70
Tip Credit for Food-Service Workers
US$5.30
Cash Wage to Service Employees
US$13.30
Tip Credit for Service Employees
US$2.70
Changes to the Exempt Salary Threshold
Certain employees may be exempt from the minimum wage and
overtime provisions under applicable law, subject to satisfying job
duties and salary requirements. Common exemptions include
executive, managerial, and administrative positions. In addition to
satisfying requirements under the Fair Labor Standards Act
(FLSA),1employees in New York must earn at least a
specified minimum weekly salary to qualify as exempt.
Effective 1 January 2026, the salary threshold for exempt status
increased as follows:
For NYC, Long Island, and Westchester County, the weekly
minimum increased from US$1,237.70 (US$64,350 per year) to
US$1,275.50 (US$66,300 per year); and
For the rest of New York state, the weekly minimum increased
from US$1,161.65 (US$60,405.80 per year) to US$1,199.10
(US$62,353.20 per year).
Note that an employee’s salary alone does not determine
exemption from overtime, and employers must also meet a job-duties
test under federal and state law. Exempt classification cannot be
based only on weekly pay.
Increase to the Uniform Allowance
In New York, if employees are required to wear uniforms,
employers must either maintain the uniforms or provide weekly
Uniform Maintenance Pay2based on hours worked. A
“required uniform” is work-specific clothing that cannot
be worn outside of work, such as branded items, chef’s coats,
or aprons. Some employers, including those covered by the Farm
Workers Minimum Wage Order3and certain nonprofits, are
exempt from the Uniform Maintenance Pay regulations. Below are the
updated 2026 weekly Uniform Maintenance Pay.
NYC, Long Island, and Westchester
County
New Rate: Effective 1 Jan. 2026
Workweek: More than 30 Hours
US$21.10
Workweek: 20–30 Hours
US$16.75
Workweek: 20 Hours or Fewer
US$10.10
Remainder of New York State
New Rate: Effective 1 Jan. 2026
Workweek: More than 30 Hours
US$19.85
Workweek: 20–30 Hours
US$15.80
Workweek: 20 Hours or Fewer
US$9.55
Antiretaliation for Accommodation Requests
Effective 5 December 2025, New York state now prohibits
employers from retaliating against individuals who request a
reasonable accommodation. Previously, employers were only barred
from retaliating or discriminating against individuals who opposed
practices prohibited under the New York State Human Rights Law
§ 296, or who filed a complaint, testified, or assisted in
proceedings pursuant to that section. With this change, the New
York State Human Rights Law now aligns with the federal Americans
with Disabilities Act and NYC law, which also prohibit retaliation
against persons requesting reasonable accommodations.
Ban on Credit History in Employment Decisions
Beginning 18 April 2026, New York state will prohibit employers
from requesting or using an applicant’s or employee’s
consumer credit history4for employment-related purposes,
including decisions related to hiring, compensation, and other
terms of employment unless exempted from coverage. Additionally,
employers may not discriminate in hiring, pay, or other terms and
conditions of employment based on that individual’s consumer
credit history.
Despite the new prohibition, reliance on consumer credit history
remains permissible for New York employers in the following
instances:
Employers required by law or regulations to use consumer credit
history for employment;
Applicants or employees who are peace officers, police
officers, or have law enforcement or investigative roles;
Positions subject to a background check by a state agency may
utilize credit history for employment purposes only in roles where
the commission has determined a high degree of public trust is
required;
Employees required to be bonded by law;
Employees needing security clearance under federal or state
law;
Nonclerical staff with regular access to trade secrets,
intelligence, or national security information;
Employees with signatory authority over third-party funds or
assets of US$10,000 or more or having fiduciary responsibility to
the employer with authority to enter financial agreements of
US$10,000 or more; and
Roles with duties that allow the employee to modify
digital-security systems protecting employer or client networks or
databases.
As a result of this amendment, New York state law is now
consistent with NYC law.5 New York state exemptions
largely mirror NYC’s law, therefore NYC employers should
continue to follow whichever law—state or city—provides
more employee protection. Because NYC law is already strict, most
local employers will see little change from the new state law.
Trapped at Work Act (S4070)
Effective 19 December 2025, S4070 prohibited employers from
requiring workers (including employees, contractors, or job
applicants) to sign “stay or pay agreements”—also
known as employment promissory notes6—as a
condition of employment. In doing so, New York joins California in
limiting the use of repayment agreements for
employees.7These agreements, which are broadly defined
by S4070, typically require workers to repay a specified amount to
the employer (or their agent/assignee) if they voluntarily
terminate their employment before completing a defined retention
period. As enacted, S4070 also applies to any contract, instrument,
or clause requiring workers to reimburse the employer for training
costs provided by the employer or a third party (commonly referred
to as training repayment agreement provisions).
S4070 does not extend to any agreement between an employee and
employer that:
Requires the employee to repay to the employer any sums
advanced to such employee by the employer, unless such sums were
used to pay for training related to the employee’s employment
with the employer;
Requires the employee to pay the employer for any property it
has sold or leased to such employee;
Requires educational personnel to comply with any terms or
conditions of sabbatical leaves granted by their employers; or
Is entered into as part of a program agreed to by the employer
and its employees’ collective-bargaining representative.
While S4070 does not provide for a private right of action,
employers who violate S4070 may face fines ranging from US$1,000 to
US$5,000 per offense. Further, employees that successfully bring an
action against their employer under S4070, may recover their
lawyers’ fees.
On 6 January 2026, the New York State Assembly proposed
amendments to S4070 to address the scope of the law, delay the
effective date, and provide clarity on its applicability to
employment agreements. As S4070 is currently in effect, employers
should review any agreements requiring repayment by an employee or
contractor for compliance with the new law while also monitoring
the pending amendments.
Expanded Earned Safe and Sick Time Act in NYC
Effective 25 October 2025, NYC has amended its Expanded Earned Safe and Sick
Time Act (ESSTA), broadening the scope of qualifying reasons
for employees to utilize paid safe and sick time. Employers are now
required to provide safe and sick leave for the following
additional circumstances:
Employees designated as “caregivers”8may
use safe and sick time to care for a minor child or a “care
recipient.”9
Employees may take leave to address situations involving
workplace violence affecting themselves or their family
members.
In the event of a “public
disaster,”10employees are entitled to take leave
for:
Workplace closures;
Caring for a child whose school or childcare provider is closed
or has restricted in-person operations; and
Compliance with directives from public officials to remain
indoors or avoid travel.
Employees may use leave to attend or prepare for legal
proceedings, or to take necessary actions related to applying for,
maintaining, or reinstating subsistence benefits or housing for
themselves, a family member, or a care recipient.
Introduction of 32 Hours of Unpaid Safe and Sick Time
Additionally, under the latest ESSTA amendment, NYC employers
must now provide employees with 32 hours of unpaid safe and sick
time annually, that is available to eligible employees for
immediate use. Previously, the NYC Temporary Schedule Change Act
required employers to grant up to two temporary schedule changes
per year for employees to use for attendance at personal events.
These schedule changes are now incorporated into the unpaid safe-
and sick-time requirement.
Employers may set a minimum-usage increment of up to four hours
per day and must separately track and report both paid- and
unpaid-time balances to comply with ESSTA’s notice and
recordkeeping obligations.
When requesting safe and sick time, employees must specify
whether they are seeking paid or unpaid leave. If not specified,
employers are required to assume the request is for available paid
safe and sick time.
NYC Transparency Pay-Data Reporting
Continuing its focus on wage transparency,11 on 4
December 2025, the NYC Council passed two bills over then Mayor
Eric Adams’ veto—Int. 982-A and Int.
984-A—requiring large private employers to report pay data
and establishing a city agency to analyze reported information.
With the passage of these bills, NYC joins other jurisdictions that
require employers to report wage and demographic data to a unit of
government12in an effort to address pay disparities and
promote wage transparency.
Int. 982-A requires private employers with at least 200
employees in NYC to submit anonymous pay-data reports to a
specified city agency, including details about employee
demographics and work locations. Under Int. 984-A, a city
agency—working with the New York City Commission on Gender
Equity and other relevant agencies—must conduct a yearly
study of pay equity among large private employers. This study will
look for differences in pay based on gender, race, or ethnicity
using the submitted data. Findings from the study must be reported
to the mayor and council speaker, and the agency must also publish
the information contained in the submitted employer reports.
The legislation became effective immediately; however, employers
are not required to submit pay data reports until the designated
city agency establishes the necessary reporting framework. The
legislation outlines a phased implementation schedule:
The mayor must appoint a responsible city agency by 4 December
2026.
Upon designation, the agency is allotted up to 12 months to
develop a standardized reporting format and submission
procedures.
Employers will subsequently be required to begin reporting
within 12 months following publication of the standardized form,
with annual submissions required thereafter.
Upcoming Legislation
Ban on Noncompetes (S4641A):13 This legislation
proposes an amendment to New York Labor Law Section 191-d, which
would prohibit the enforcement of most noncompete agreements.
Exceptions would be permitted only for highly compensated
individuals earning over US$500,000 annually and in cases involving
the sale of a business. S4641A would grant covered individuals a
private right of action. As the enforceability of restrictive
covenants is primarily based on state law, New York employers
should monitor this legislation to ensure compliance with
postemployment obligations.
Next Steps
Employers should carefully review their employment agreements,
policies, and practices to ensure compliance with these new
requirements. Our lawyers in the Labor, Employment, and Workplace
Safety practice will continue to monitor for implementing rules,
additional amendments, and other updates.
Footnotes
To be classified as exempt under the FLSA, employees must
earn a weekly salary of at least US$684 (US$35,568 per year) and
satisfy the job duties for a particular exemption.
2 Where an employer fails to wash or maintain required
uniforms for any employee, they shall pay such employee in addition
to minimum wage, based on the number of hours worked, i.e.,
“Uniform Maintenance Pay.”
3 The Farm Workers Minimum Wage Order provides that all
workers, with certain exceptions, receive the Minimum Wage required
per New York law.The Farm Workers Minimum Wage Order applies only
to farm workers employed on farms where the total compensation paid
all persons employed on the farm exceeded $3,000 in the previous
calendar year.
4 The term “consumer credit history” is defined
as an individual’s credit worthiness, credit standing, credit
capacity, or payment history as indicated by: (1) a consumer credit
report; (2) credit score; or (3) information an employer obtains
directly from the individual regarding (a) details about credit
accounts, including the individual’s number of credit accounts,
late or missed payments, charged-off debts, items in collections,
credit limit, or prior credit-report inquiries, or (b)
bankruptcies, judgments, or liens.
5 NYC Admin. Code § 8-107(24).
6 The term “employment promissory note” is
defined as any instrument, agreement, or contract provision that
requires a worker to pay the employer, or the employer’s agent
or assignee, a sum of money if the worker leaves such employment
before the passage of a stated period of time. An “employment
promissory note” also includes any such instrument, agreement,
or contract provision that states such payment of moneys
constitutes reimbursement for training provided to the worker by
the employer or by a third party.
7 See K&L Gates Legal Alert, The Essentials
California Employment Law Update for 2026, Nov. 17, 2025, https://www.klgates.com/The-EssentialsCalifornia-Employment-Law-Update-for-2026-11-17-2025.
8 “Caregiver” is defined as a person who
provides direct and ongoing care for a minor child or a care
recipient.
9 Care recipient” is defined as a person with a
disability, including a temporary disability, who (1) is the
caregiver’s family member or resides in the caregiver’s
household, and (2) relies on the caregiver for medical care or to
meet the needs of daily living.
10 “Public disaster” is defined as an event
such as fire, explosion, terrorist attack, severe weather
conditions, or other catastrophe that is declared a public
emergency or disaster by the president of the United States, the
governor of the state of New York, or the mayor of the city of New
York.
11 See K&L Gates Legal Alert, Help Wanted:
What Employers Need to Know About Pay Transparency, Oct. 28, 2022,
https://www.klgates.com/Help-Wanted-What-Employers-Need-to-Know-About-Pay-Transparency-Requirements-in-Job-Postings-10-28-2022.
12 See K&L Gates Legal Alert, California Pay
Transparency Act Considerations for Employers, Mar. 28, 2023, https://www.klgates.com/California-Pay-Transparency-Act-Considerations-for-Employers-3-28-2023;
See K&L Gates Legal Alert, Illinois Employment Law
Developments, Feb. 21, 2022, https://www.klgates.com/Illinois-Employment-Law-Developments-2-21-2022.
13 S4641A has only passed the Senate and is pending
before the Assembly.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.