New York state and New York City (NYC) continue to advance an
\nextensive and evolving framework of workplace regulations. Several
\nnew statutory and regulatory developments will impact employers
\nacross industries in 2026. These changes reflect the ongoing focus
\non worker protections, workplace transparency, and compliance
\nenforcement. This client alert highlights notable updates, outlines
\nkey obligations for employers, and identifies action items to help
\norganizations prepare for the year ahead.<\/p>\n
Minimum Wage Rate Increases<\/p>\n
New York’s minimum wage increases to US$17.00\/hour for
\nemployees in NYC, Long Island, and Westchester County, and to
\nUS$16.00\/hour elsewhere in the state. Other adjustments include
\nhigher rates for overtime, tipped food-service workers’ cash
\nwages, overtime for tipped employees, and tip credits. Both the
\nminimum wage and cash wage for tipped food-service workers have
\nalso increased in New York.<\/p>\n
\n
\n
\nNYC, Long Island, and Westchester
\nCounty
\n
\n
\n
\n
\nNew Rate: Effective 1 Jan. 2026
\n
\n
\n
\nMinimum Wage
\nUS$17.00
\n
\n
\n
\nMinimum Overtime Rate
\nUS$25.50
\n
\n
\n
\nCash Wage to Tipped Food-Service Workers
\nUS$11.35
\n
\n
\n
\nTip Credit for Food-Service Workers
\nUS$5.65
\n
\n
\n
\nCash Wage to Service Employees
\nUS$14.15
\n
\n
\n
\nTip Credit for Service Employees
\nUS$2.85
\n
\n
<\/p>\n
\n
\n
\nRemainder of New York State
\n
\n
\n
\n
\nNew Rate: Effective 1 Jan. 2026
\n
\n
\n
\nMinimum Wage
\nUS$16.00
\n
\n
\n
\nMinimum Overtime Rate
\nUS$24.00
\n
\n
\n
\nCash Wage to Tipped Food-Service Workers
\nUS$10.70
\n
\n
\n
\nTip Credit for Food-Service Workers
\nUS$5.30
\n
\n
\n
\nCash Wage to Service Employees
\nUS$13.30
\n
\n
\n
\nTip Credit for Service Employees
\nUS$2.70
\n
\n
<\/p>\n
Changes to the Exempt Salary Threshold<\/p>\n
Certain employees may be exempt from the minimum wage and
\novertime provisions under applicable law, subject to satisfying job
\nduties and salary requirements. Common exemptions include
\nexecutive, managerial, and administrative positions. In addition to
\nsatisfying requirements under the Fair Labor Standards Act
\n(FLSA),1employees in New York must earn at least a
\nspecified minimum weekly salary to qualify as exempt.<\/p>\n
Effective 1 January 2026, the salary threshold for exempt status
\nincreased as follows:<\/p>\n
\nFor NYC, Long Island, and Westchester County, the weekly
\nminimum increased from US$1,237.70 (US$64,350 per year) to
\nUS$1,275.50 (US$66,300 per year); and
\n
\nFor the rest of New York state, the weekly minimum increased
\nfrom US$1,161.65 (US$60,405.80 per year) to US$1,199.10
\n(US$62,353.20 per year).
<\/p>\n
Note that an employee’s salary alone does not determine
\nexemption from overtime, and employers must also meet a job-duties
\ntest under federal and state law. Exempt classification cannot be
\nbased only on weekly pay.<\/p>\n
Increase to the Uniform Allowance<\/p>\n
In New York, if employees are required to wear uniforms,
\nemployers must either maintain the uniforms or provide weekly
\nUniform Maintenance Pay2based on hours worked. A
\n“required uniform” is work-specific clothing that cannot
\nbe worn outside of work, such as branded items, chef’s coats,
\nor aprons. Some employers, including those covered by the Farm
\nWorkers Minimum Wage Order3and certain nonprofits, are
\nexempt from the Uniform Maintenance Pay regulations. Below are the
\nupdated 2026 weekly Uniform Maintenance Pay.<\/p>\n
\n
\n
\nNYC, Long Island, and Westchester
\nCounty
\n
\n
\n
\n
\nNew Rate: Effective 1 Jan. 2026
\n
\n
\n
\nWorkweek: More than 30 Hours
\nUS$21.10
\n
\n
\n
\nWorkweek: 20\u201330 Hours
\nUS$16.75
\n
\n
\n
\nWorkweek: 20 Hours or Fewer
\nUS$10.10
\n
\n
<\/p>\n
\n
\n
\nRemainder of New York State
\n
\n
\n
\n
\nNew Rate: Effective 1 Jan. 2026
\n
\n
\n
\nWorkweek: More than 30 Hours
\nUS$19.85
\n
\n
\n
\nWorkweek: 20\u201330 Hours
\nUS$15.80
\n
\n
\n
\nWorkweek: 20 Hours or Fewer
\nUS$9.55
\n
\n
<\/p>\n
Antiretaliation for Accommodation Requests<\/p>\n
Effective 5 December 2025, New York state now prohibits
\nemployers from retaliating against individuals who request a
\nreasonable accommodation. Previously, employers were only barred
\nfrom retaliating or discriminating against individuals who opposed
\npractices prohibited under the New York State Human Rights Law
\n\u00a7 296, or who filed a complaint, testified, or assisted in
\nproceedings pursuant to that section. With this change, the New
\nYork State Human Rights Law now aligns with the federal Americans
\nwith Disabilities Act and NYC law, which also prohibit retaliation
\nagainst persons requesting reasonable accommodations.<\/p>\n
Ban on Credit History in Employment Decisions<\/p>\n
Beginning 18 April 2026, New York state will prohibit employers
\nfrom requesting or using an applicant’s or employee’s
\nconsumer credit history4for employment-related purposes,
\nincluding decisions related to hiring, compensation, and other
\nterms of employment unless exempted from coverage. Additionally,
\nemployers may not discriminate in hiring, pay, or other terms and
\nconditions of employment based on that individual’s consumer
\ncredit history.<\/p>\n
Despite the new prohibition, reliance on consumer credit history
\nremains permissible for New York employers in the following
\ninstances:<\/p>\n
\nEmployers required by law or regulations to use consumer credit
\nhistory for employment;
\n
\nApplicants or employees who are peace officers, police
\nofficers, or have law enforcement or investigative roles;
\n
\nPositions subject to a background check by a state agency may
\nutilize credit history for employment purposes only in roles where
\nthe commission has determined a high degree of public trust is
\nrequired;
\n
\nEmployees required to be bonded by law;
\n
\nEmployees needing security clearance under federal or state
\nlaw;
\n
\nNonclerical staff with regular access to trade secrets,
\nintelligence, or national security information;
\n
\nEmployees with signatory authority over third-party funds or
\nassets of US$10,000 or more or having fiduciary responsibility to
\nthe employer with authority to enter financial agreements of
\nUS$10,000 or more; and
\n
\nRoles with duties that allow the employee to modify
\ndigital-security systems protecting employer or client networks or
\ndatabases.
<\/p>\n
As a result of this amendment, New York state law is now
\nconsistent with NYC law.5 New York state exemptions
\nlargely mirror NYC’s law, therefore NYC employers should
\ncontinue to follow whichever law\u2014state or city\u2014provides
\nmore employee protection. Because NYC law is already strict, most
\nlocal employers will see little change from the new state law.<\/p>\n
Trapped at Work Act (S4070)<\/p>\n
Effective 19 December 2025, S4070 prohibited employers from
\nrequiring workers (including employees, contractors, or job
\napplicants) to sign “stay or pay agreements”\u2014also
\nknown as employment promissory notes6\u2014as a
\ncondition of employment. In doing so, New York joins California in
\nlimiting the use of repayment agreements for
\nemployees.7These agreements, which are broadly defined
\nby S4070, typically require workers to repay a specified amount to
\nthe employer (or their agent\/assignee) if they voluntarily
\nterminate their employment before completing a defined retention
\nperiod. As enacted, S4070 also applies to any contract, instrument,
\nor clause requiring workers to reimburse the employer for training
\ncosts provided by the employer or a third party (commonly referred
\nto as training repayment agreement provisions).<\/p>\n
S4070 does not extend to any agreement between an employee and
\nemployer that:<\/p>\n
\nRequires the employee to repay to the employer any sums
\nadvanced to such employee by the employer, unless such sums were
\nused to pay for training related to the employee’s employment
\nwith the employer;
\n
\nRequires the employee to pay the employer for any property it
\nhas sold or leased to such employee;
\n
\nRequires educational personnel to comply with any terms or
\nconditions of sabbatical leaves granted by their employers; or
\n
\nIs entered into as part of a program agreed to by the employer
\nand its employees’ collective-bargaining representative.
<\/p>\n
While S4070 does not provide for a private right of action,
\nemployers who violate S4070 may face fines ranging from US$1,000 to
\nUS$5,000 per offense. Further, employees that successfully bring an
\naction against their employer under S4070, may recover their
\nlawyers’ fees.<\/p>\n
On 6 January 2026, the New York State Assembly proposed
\namendments to S4070 to address the scope of the law, delay the
\neffective date, and provide clarity on its applicability to
\nemployment agreements. As S4070 is currently in effect, employers
\nshould review any agreements requiring repayment by an employee or
\ncontractor for compliance with the new law while also monitoring
\nthe pending amendments.<\/p>\n
Expanded Earned Safe and Sick Time Act in NYC<\/p>\n
Effective 25 October 2025, NYC has amended its Expanded Earned Safe and Sick
Introduction of 32 Hours of Unpaid Safe and Sick Time<\/p>\n Additionally, under the latest ESSTA amendment, NYC employers
Employers may set a minimum-usage increment of up to four hours
When requesting safe and sick time, employees must specify
NYC Transparency Pay-Data Reporting<\/p>\n Continuing its focus on wage transparency,11 on 4
Int. 982-A requires private employers with at least 200
The legislation became effective immediately; however, employers
Employers will subsequently be required to begin reporting
Upcoming Legislation<\/p>\n Ban on Noncompetes (S4641A<\/a>):13 This legislation
Next Steps<\/p>\n Employers should carefully review their employment agreements,
Footnotes<\/p>\n To be classified as exempt under the FLSA, employees must
2 Where an employer fails to wash or maintain required
3 The Farm Workers Minimum Wage Order provides that all
4 The term “consumer credit history” is defined
5 NYC Admin. Code \u00a7 8-107(24).<\/p>\n 6 The term “employment promissory note” is
7 See K&L Gates Legal Alert, The Essentials
8 “Caregiver” is defined as a person who
9 Care recipient” is defined as a person with a
10 “Public disaster” is defined as an event
11 See K&L Gates Legal Alert, Help Wanted:
12 See K&L Gates Legal Alert, California Pay
13 S4641A has only passed the Senate and is pending
The content of this article is intended to provide a general
\nTime Act (ESSTA<\/a>), broadening the scope of qualifying reasons
\nfor employees to utilize paid safe and sick time. Employers are now
\nrequired to provide safe and sick leave for the following
\nadditional circumstances:<\/p>\n
\nEmployees designated as “caregivers”8may
\nuse safe and sick time to care for a minor child or a “care
\nrecipient.”9
\n
\nEmployees may take leave to address situations involving
\nworkplace violence affecting themselves or their family
\nmembers.
\n
\nIn the event of a “public
\ndisaster,”10employees are entitled to take leave
\nfor:
\n
\n
\nWorkplace closures;
\n
\nCaring for a child whose school or childcare provider is closed
\nor has restricted in-person operations; and
\n
\nCompliance with directives from public officials to remain
\nindoors or avoid travel.
\n
\n
\n
\nEmployees may use leave to attend or prepare for legal
\nproceedings, or to take necessary actions related to applying for,
\nmaintaining, or reinstating subsistence benefits or housing for
\nthemselves, a family member, or a care recipient.
<\/p>\n
\nmust now provide employees with 32 hours of unpaid safe and sick
\ntime annually, that is available to eligible employees for
\nimmediate use. Previously, the NYC Temporary Schedule Change Act
\nrequired employers to grant up to two temporary schedule changes
\nper year for employees to use for attendance at personal events.
\nThese schedule changes are now incorporated into the unpaid safe-
\nand sick-time requirement.<\/p>\n
\nper day and must separately track and report both paid- and
\nunpaid-time balances to comply with ESSTA’s notice and
\nrecordkeeping obligations.<\/p>\n
\nwhether they are seeking paid or unpaid leave. If not specified,
\nemployers are required to assume the request is for available paid
\nsafe and sick time.<\/p>\n
\nDecember 2025, the NYC Council passed two bills over then Mayor
\nEric Adams’ veto\u2014Int. 982-A and Int.
\n984-A\u2014requiring large private employers to report pay data
\nand establishing a city agency to analyze reported information.
\nWith the passage of these bills, NYC joins other jurisdictions that
\nrequire employers to report wage and demographic data to a unit of
\ngovernment12in an effort to address pay disparities and
\npromote wage transparency.<\/p>\n
\nemployees in NYC to submit anonymous pay-data reports to a
\nspecified city agency, including details about employee
\ndemographics and work locations. Under Int. 984-A, a city
\nagency\u2014working with the New York City Commission on Gender
\nEquity and other relevant agencies\u2014must conduct a yearly
\nstudy of pay equity among large private employers. This study will
\nlook for differences in pay based on gender, race, or ethnicity
\nusing the submitted data. Findings from the study must be reported
\nto the mayor and council speaker, and the agency must also publish
\nthe information contained in the submitted employer reports.<\/p>\n
\nare not required to submit pay data reports until the designated
\ncity agency establishes the necessary reporting framework. The
\nlegislation outlines a phased implementation schedule:<\/p>\n
\nThe mayor must appoint a responsible city agency by 4 December
\n2026.
\n
\nUpon designation, the agency is allotted up to 12 months to
\ndevelop a standardized reporting format and submission
\nprocedures.
<\/p>\n
\nwithin 12 months following publication of the standardized form,
\nwith annual submissions required thereafter.<\/p>\n
\nproposes an amendment to New York Labor Law Section 191-d, which
\nwould prohibit the enforcement of most noncompete agreements.
\nExceptions would be permitted only for highly compensated
\nindividuals earning over US$500,000 annually and in cases involving
\nthe sale of a business. S4641A would grant covered individuals a
\nprivate right of action. As the enforceability of restrictive
\ncovenants is primarily based on state law, New York employers
\nshould monitor this legislation to ensure compliance with
\npostemployment obligations.<\/p>\n
\npolicies, and practices to ensure compliance with these new
\nrequirements. Our lawyers in the Labor, Employment, and Workplace
\nSafety practice will continue to monitor for implementing rules,
\nadditional amendments, and other updates.<\/p>\n
\nearn a weekly salary of at least US$684 (US$35,568 per year) and
\nsatisfy the job duties for a particular exemption.<\/p>\n
\nuniforms for any employee, they shall pay such employee in addition
\nto minimum wage, based on the number of hours worked, i.e.,
\n“Uniform Maintenance Pay.”<\/p>\n
\nworkers, with certain exceptions, receive the Minimum Wage required
\nper New York law.The Farm Workers Minimum Wage Order applies only
\nto farm workers employed on farms where the total compensation paid
\nall persons employed on the farm exceeded $3,000 in the previous
\ncalendar year.<\/p>\n
\nas an individual’s credit worthiness, credit standing, credit
\ncapacity, or payment history as indicated by: (1) a consumer credit
\nreport; (2) credit score; or (3) information an employer obtains
\ndirectly from the individual regarding (a) details about credit
\naccounts, including the individual’s number of credit accounts,
\nlate or missed payments, charged-off debts, items in collections,
\ncredit limit, or prior credit-report inquiries, or (b)
\nbankruptcies, judgments, or liens.<\/p>\n
\ndefined as any instrument, agreement, or contract provision that
\nrequires a worker to pay the employer, or the employer’s agent
\nor assignee, a sum of money if the worker leaves such employment
\nbefore the passage of a stated period of time. An “employment
\npromissory note” also includes any such instrument, agreement,
\nor contract provision that states such payment of moneys
\nconstitutes reimbursement for training provided to the worker by
\nthe employer or by a third party.<\/p>\n
\nCalifornia Employment Law Update for 2026, Nov. 17, 2025, https:\/\/www.klgates.com\/The-EssentialsCalifornia-Employment-Law-Update-for-2026-11-17-2025<\/a>.<\/p>\n
\nprovides direct and ongoing care for a minor child or a care
\nrecipient.<\/p>\n
\ndisability, including a temporary disability, who (1) is the
\ncaregiver’s family member or resides in the caregiver’s
\nhousehold, and (2) relies on the caregiver for medical care or to
\nmeet the needs of daily living.<\/p>\n
\nsuch as fire, explosion, terrorist attack, severe weather
\nconditions, or other catastrophe that is declared a public
\nemergency or disaster by the president of the United States, the
\ngovernor of the state of New York, or the mayor of the city of New
\nYork.<\/p>\n
\nWhat Employers Need to Know About Pay Transparency, Oct. 28, 2022,
\nhttps:\/\/www.klgates.com\/Help-Wanted-What-Employers-Need-to-Know-About-Pay-Transparency-Requirements-in-Job-Postings-10-28-2022<\/a>.<\/p>\n
\nTransparency Act Considerations for Employers, Mar. 28, 2023, https:\/\/www.klgates.com\/California-Pay-Transparency-Act-Considerations-for-Employers-3-28-2023<\/a>;
\nSee K&L Gates Legal Alert, Illinois Employment Law
\nDevelopments, Feb. 21, 2022, https:\/\/www.klgates.com\/Illinois-Employment-Law-Developments-2-21-2022<\/a>.<\/p>\n
\nbefore the Assembly.<\/p>\n
\nguide to the subject matter. Specialist advice should be sought
\nabout your specific circumstances.<\/p>\n","protected":false},"excerpt":{"rendered":"New York state and New York City (NYC) continue to advance an
extensive and evolving framework of workplace…\n","protected":false},"author":2,"featured_media":135484,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[9,24,63,122,124,123],"class_list":["post-135483","post","type-post","status-publish","format-standard","has-post-thumbnail","category-queens","tag-new-york","tag-new-york-city","tag-nyc","tag-queens","tag-queens-headlines","tag-queens-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/135483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=135483"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/135483\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/135484"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=135483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=135483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=135483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}