New York State and New York City enacted a host of new and amended employment laws between the end of 2025 and the beginning of 2026. The common thread among these laws is that each new law substantially expands the protections and rights of employees. As such, it is recommended that New York employers revise their policies and practices to stay compliant.<\/p>\n
Effective February 22, 2026: Updates to NYC ESSTA<\/p>\n
Recent amendments to the New York City Earned Safe and Sick Time Act (\u201cNYC ESSTA\u201d) have expanded the law in several significant respects. Prior to February 22, 2026, NYC ESSTA required that employers provide employees with one hour of paid sick leave for every 30 hours worked, up to 40 hours of paid time per year for employers with 99 or fewer employees, and up to 56 hours of paid time for employers with 100 or more employees, to be used for \u201csick\u201d and \u201csafe\u201d related reasons as set forth in NYC ESSTA.<\/p>\n
Under the\u00a0NYC ESSTA amendment<\/a>, effective February 22, 2026, New York City employers now must provide employees with an additional thirty-two (32) hours of\u00a0unpaid\u00a0safe and sick time on the first day of each calendar year (the calendar year may be designated by the employer). Employees are entitled to use the leave immediately after the time of hire, with the leave renewing at the beginning of each calendar year. Employers are not required to permit employees to carry over unused hours from one calendar year to the next.<\/p>\n This new bucket of 32 hours of unpaid leave has a direct impact on NYC\u2019s Temporary Scheduling Law (the \u201cScheduling Law\u201d), which has been in effect since July 2018. The Scheduling Law previously allowed employees to request two (2) temporary schedule changes a year for personal events as outlined under the law, and obligated employers to honor such request, except in certain specified circumstances. Now, pursuant to the Amendment, while employees may still request the scheduling change, employers are no longer required to provide such changes. Employers may also require employees to use their leave in these circumstances, whether paid or unpaid. However, employers still must respond to the employee\u2019s request as soon as practicable and may propose an alternative temporary change if the employee\u2019s request is not acceptable.<\/p>\n The Amendment also expands the list of permissible reasons for employees to use safe and sick leave.\u00a0In addition to the existing bases for leave, employees may now use safe leave to care for a minor child or care recipient, to prepare for legal proceedings for benefits, and\/or to seek care after experiencing workplace violence. Further, employees may use sick leave to care for a child whose school or childcare provider is closed due to a public disaster. New York City additionally implemented another bucket of up to 20 hours of \u201cpaid prenatal personal leave\u201d to align with\u00a0New York State law<\/a>\u00a0which in January 2025 provided leave for prenatal care.<\/p>\n The New York City Department of Consumer and Worker Protection (\u201cDCWP\u201d) has issued proposed rules on the NYC ESSTA amendments.\u00a0DCWP is currently accepting comments on the proposed rules intended to clarify the law\u2019s requirements, and\u00a0a public hearing<\/a>\u00a0is scheduled for March 2, 2026.<\/p>\n Effective April 18, 2026: Prohibition on Requesting or Using Consumer Credit Reports in Hiring Decisions<\/p>\n Effective April 18, 2026,\u00a0an Amendment<\/a>\u00a0to the New York State general business law will prohibit employers from requesting a prospective employee\u2019s credit history report during the hiring process. The amendment also prohibits discrimination against an employee in hiring, compensation, or terms of employment, based on the employee\u2019s consumer credit history.<\/p>\n On February 13, 2026,\u00a0the Amendment was further revised<\/a>\u00a0to include the definition of \u201cemployer\u201d which \u201cmeans any individual, partnership, corporation, or association engaged in a business who has employees including the state and its political subdivisions.\u201d\u00a0This further amendment also clarified those positions for which requesting a credit report is permitted, including positions that: require a credit report by a state or federal agency; are peace officers or police officers; require a background investigation by a state agency; require a person to be bonded under state and federal law; require security clearance; are non-clerical personnel with regular access to trade secrets; allow for signatory authority over third-party funds and assets of agreements valued at $10,000.00 or more; and can modify digital security systems to prevent unauthorized use of databases.<\/p>\n For those positions that do not fall under the exceptions, requesting an employee\u2019s credit history reporting is considered an unlawful discriminatory practice, and an employer may be liable for actual damages sustained by the prospective employee, costs, and attorneys\u2019 fees.<\/p>\n Effective December 19, 2026: The \u201cTrapped at Work Act\u201d<\/p>\n On December 19, 2025, Governor Hochul signed into law the\u00a0\u201cTrapped at Work Act\u201d<\/a>. The law voids and nullifies \u201cemployment promissory notes\u201d or agreements between employees and their employer that require \u201cworkers\u201d to repay employers a sum of money (e.g., the cost of training) should the worker leave a job before a designated date. The Act specifies that certain reimbursement agreements are permissible, such as repayment of advances unrelated to training, repayment for purchasing property, sabbatical agreements for education personnel, and reimbursement requirements outlined in collective bargaining agreements.<\/p>\n On February 13, 2026, Governor Hochul signed\u00a0an Amendment<\/a>\u00a0to the recently enacted \u201cTrapped at Work\u201d Act. The Amendment made notable changes to the Act, with the effective date now\u00a0December 19, 2026.<\/p>\n The Amendment narrows the applicability of the law from \u201cworkers\u201d to \u201cemployees,\u201d thereby excluding independent contractors from coverage under the Act. The Amendment also provides that employers may still seek repayment from employees for the cost of a degree or certification that is not position-specific (defined as a \u201ctransferrable credential\u201d) if certain conditions set forth in the Amendment are met. Additionally, employers may also seek repayment for any financial bonuses, like sign on bonuses, relocation assistance, or other non-educational incentive payments or benefits, if those payments are not \u201ctied to specific job performance.\u201d \u201cJob performance,\u201d however, is not defined in the Amendment. Additionally, these repayments are not recoverable by the employer if an employee was terminated for \u201cany reason other than misconduct or the duties or requirements of the job were misrepresented to the employee.\u201d Once in effect, it will be important for employers to understand the scope of prohibited reimbursement agreements and to align related documents accordingly.<\/p>\n Violations of the Act will result in a fine between $1,000.00 and $5,000.00, per violation, with each note treated as a separate violation. Workers can also bring action against their employers for non-compliance through the Department of Labor, to recover either the greater of their damages, or $5,000.00, as well as injunctive relief, and attorney\u2019s fees.<\/p>\n On the Horizon: NYC Pay Data Reports<\/p>\n On December 4, 2025, the New York City Council overrode Mayor Eric Adam\u2019s veto of a bill that requires covered employers with 200 or more employees to collect and report data on their pay practices to New York City.<\/p>\n The first step is for the City to create a \u201cdesignated agency\u201d by December 4, 2026, which shall conduct a \u201cpay equity study\u201d of the private workforce. The designated agency will be tasked with creating a standard form for all impacted employers to submit these reports within the first year it is created. No later than one year after the standardized form is published by the agency, City employers will be required to submit a pay report to the designated agency on an annual basis via the form, which will include employee data such as gender, wages, and total hours worked.<\/p>\n While it will be some time until covered City employers will be required to submit pay reports, this important development is on the horizon.<\/p>\n Effective Immediately: Enactment of the Reasonable Accommodations Anti-Retaliation Act<\/p>\n