New York employment law updates in 2026 represent the most significant expansion of worker protections in years. From wage increases to groundbreaking restrictions on training repayment agreements, these New York labor law changes affect every employee across the state. Whether you work in New York City, Long Island, Westchester, or elsewhere in the state, understanding these employee rights New York has newly codified is critical to protecting yourself in the workplace.

This blog examines key New York workplace law updates, explains how each change affects employees, identifies which protections apply statewide versus locally, and provides guidance on exercising your expanded rights under these new laws.

Wage and Hour Protections

Minimum Wage Increases

Effective January 1, 2026, New York’s minimum wage increased across the state. The new rates are $17.00 per hour for New York City, Long Island, and Westchester County, and $16.00 per hour for the remainder of New York State. Starting in 2027, subsequent increases will be tied to a three-year average of regional consumer price index, ensuring wages keep pace with inflation.

If your employer pays less than the applicable minimum wage for your location, they are violating state law. All hourly and non-exempt employees are entitled to these increased rates for every hour worked.

Higher Salary Requirements for Overtime Exemption

Many employees classified as “exempt” from overtime may now be entitled to overtime pay due to increased salary thresholds. Effective January 1, 2026, to qualify for executive and administrative overtime exemptions, employers must pay at least $1,275.00 per week ($66,300.00 annually) in New York City, Long Island, and Westchester, or $1,199.10 per week ($62,353.20 annually) in the rest of New York State.

Meeting the salary threshold alone is insufficient. Your primary duties must also qualify as exempt work. If your employer reduced your salary below the threshold or if you never met the duties test, you may be entitled to overtime pay for hours worked beyond 40 per week. Review your classification carefully—misclassification can result in substantial back pay owed to you.

Prohibition on Training Repayment Agreements

The Trapped at Work Act signed December 19, 2025 and effective immediately, prohibits employers from requiring “employment promissory notes” as a condition of employment. These agreements require employees to repay training costs or other amounts if they left employment before a specified period.

The law voids existing training repayment agreements, making them unenforceable. If your employer attempts to collect money under such an agreement, you may have grounds to refuse payment and recover attorneys’ fees if you successfully defend against collection efforts. The law contains limited exceptions for repayment of sign-on bonuses, retention bonuses, property sold or leased to employees, and collective bargaining agreements.

Workers trapped by repayment obligations that prevented them from leaving bad jobs or pursuing better opportunities now have legal protection. If your employer threatens to enforce such agreements, consult an employment attorney immediately.

Expanded Leave Protections

New York City Earned Safe and Sick Time Act Changes

Among the most significant NYC employment laws in 2026, beginning February 22, 2026, New York City employees receive substantial new leave protections. Employers must provide 32 hours of unpaid safe and sick leave, frontloaded and available immediately upon hire and at the start of each calendar year. This unpaid leave is in addition to existing paid leave requirements of 40 or 56 hours depending on employer size.

The law also expands qualifying reasons for using safe and sick time to include:

• Caring for a minor child or “care recipient” (a person with a disability who relies on the employee for medical care or daily living needs)
• Pursuing subsistence benefits or housing for the employee, family member, or care recipient
• Workplace violence affecting the employee or family member
• Public disasters resulting in workplace closure, school/childcare closure, or official directives to remain indoors or avoid travel

Employers must provide available paid leave first before unpaid leave, unless you specifically request unpaid leave. The unpaid leave does not carry over year to year, and employers can require it be used in minimum four-hour increments.

If your employer denies leave for these expanded reasons or fails to provide the required unpaid leave bank, they may be violating the law.

Paid Prenatal Leave

New York City law requires 20 hours of paid prenatal leave, codified in the expanded ESSTA effective February 22, 2026. This leave is separate from and in addition to other safe and sick time. Pregnant employees can use this leave for healthcare services during pregnancy, including physical examinations, medical procedures, monitoring, testing, and discussions with healthcare providers about pregnancy.

Paid Family Leave Rate Increases

For 2026, the New York Paid Family Leave employee contribution increased to 0.432% of gross wages per pay period, with a maximum annual contribution of $411.91. The maximum weekly benefit increased to $1,228.53. Eligible employees can take up to 12 weeks of protected leave for bonding with a new child, caring for a seriously ill family member, or certain military family circumstances.

Credit Check Restrictions

Effective April 18, 2026, New York State employers cannot request or use consumer credit history—including credit reports, credit scores, bankruptcies, liens, or judgments—when making hiring, promotion, or compensation decisions. This prohibition applies statewide and significantly limits employers’ ability to screen candidates based on financial history.

Limited exceptions exist for positions legally requiring credit checks, law enforcement roles, positions with signatory authority over third-party funds exceeding $10,000, positions requiring security clearances, non-clerical positions with regular access to trade secrets, and positions allowing modification of digital security systems.

If an employer requests your credit history for a position that doesn’t fall within these narrow exceptions, they are likely violating the law. New York City has prohibited most credit checks since 2015, so this new state law extends similar protections statewide.

Disparate Impact Discrimination

New York State codified disparate impact discrimination effective December 19, 2025. Under this theory, you can establish unlawful discrimination by showing that an employer’s practice has a discriminatory effect—that it actually or predictably results in adverse employment action against a protected group—even without proving discriminatory intent.

This is significant because it means neutral policies that disproportionately harm protected groups can violate the New York State Human Rights Law. For example, if an employer’s attendance policy disproportionately affects employees with disabilities who need medical leave, you may challenge that policy even if the employer didn’t intend to discriminate.

To defend against disparate impact claims, employers must prove the policy is job-related, necessary for business operations, and that no less discriminatory alternative exists. This expanded protection strengthens anti-discrimination enforcement in New York, particularly as federal enforcement of disparate impact claims remains uncertain.

Retirement Savings Access

The New York Secure Choice Savings Program begins in March 2026, requiring employers with 10 or more employees who don’t offer qualified retirement plans to facilitate enrollment in a state-sponsored Roth IRA program. Implementation deadlines vary by employer size: employers with 30+ employees must begin by March 18, 2026; those with 15-29 employees by May 15, 2026; and those with 10-14 employees by July 15, 2026.

While employers don’t contribute to these accounts, they must facilitate automatic payroll deductions unless employees opt out. This expands retirement savings access for employees whose employers don’t offer 401(k) or similar plans. If your employer doesn’t offer retirement benefits and hasn’t informed you about Secure Choice enrollment, inquire about the program to ensure you’re not missing the opportunity to save.

New York City Pay Transparency Requirements

On December 4, 2025, the New York City Council overrode the mayor’s veto of new pay data reporting requirements for private employers with 200 or more employees. This law requires annual reporting of pay data and demographic information aggregated by race/ethnicity, sex, and job category, similar to EEOC EEO-1 Component 2 reporting.

Implementation will occur in stages: within one year, the mayor must designate an agency; that agency then has one year to develop a standardized reporting form; and employers then have one year after the form is published to submit required information. These transparency requirements aim to reduce gender and race pay inequities by exposing compensation disparities.

Take Action: Know Your Rights

These New York workplace law updates create new protections and expand existing employee rights New York workers can enforce. Understanding how these laws apply to your specific situation is essential.

Immediate Steps

1. Verify your wages: Confirm you’re receiving at least the applicable minimum wage for your location. If you’re classified as exempt from overtime, verify your salary meets the new threshold and your duties actually qualify for exemption.
2. Review training agreements: If you signed training repayment agreements, understand they may now be void and unenforceable under the Trapped at Work Act.
3. Understand leave entitlements: New York City employees should familiarize themselves with expanded safe and sick time, including the new unpaid leave bank and qualifying reasons.
4. Know credit check limitations: If applying for jobs, understand employers generally cannot request credit history except in narrow circumstances.
5. Challenge discriminatory policies: If workplace policies disproportionately affect protected groups, you may have grounds to challenge them under disparate impact theory. 

Why Legal Assistance Matters

The sweeping employment law changes taking effect across New York in 2026 give you more power in the workplace than ever before—but only if you know how to use them. Whether you’re being underpaid under the new minimum wage rates, trapped by an illegal training repayment agreement, denied earned leave, subjected to unlawful credit checks, or facing workplace policies that disproportionately harm you and your colleagues, the Law Office of Bhavleen Sabharwal is dedicated to ensuring employees understand and enforce their rights.

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DISCLAIMER: This blog post is for informational purposes only and does not constitute legal advice. The information provided is general in nature and may not apply to your specific situation. Employment law cases are highly fact-specific, and the laws governing such cases can be complex and subject to change. Nothing in this article creates an attorney-client relationship, and you should not rely on this information as a substitute for professional legal counsel. If you believe your employer is violating your rights under New York employment law, or if you have questions about how these 2026 changes affect you, you should consult with a qualified employment attorney who can evaluate the specific facts of your case and provide personalized legal advice based on current law and your individual circumstances. Deadlines for filing claims can be extremely short, so prompt consultation with an attorney is critical to preserving your rights.