Expert Analysis | 2026: New year, new employer risks and aggressive enforcement alert

The Manhattan skyline, viewed from Brooklyn. Photo by Andrew Denney

Photo by Andrew Denney

January for employers means training (if you didn’t get it done in December) and handbook updates. This  year, with ramped up enforcement by New York agencies at both levels that will only proliferate with a new mayor and City Council speaker who have both announced a focus on worker protection, it is more important than ever that employers know the latest rules. Here are a few things they need to be on top of for 2026. 

Statutory Wage Increases

Minimum Wage

As of Jan. 1, 2026, New York’s minimum wage is $17 per hour for New York City; Suffolk, Nassau, and Westchester counties (for all other counties it increases to $16 per hour).

Exempt Employees 

Throughout New York, employees who make a certain minimum amount of salary may be exempt from overtime if their duties include executive, managerial, or administrative duties that have been interpreted to include the power to hire and fire. That salary threshold is changing. For New York City, Long Island, and Westchester, the new annual wage must be at least $66,300 per year; for the rest of New York it must be at least $62,353.20. 

Employers who pay minimum wage, salaries to exempt employees, or are even just giving employees a New Year’s raise, must reissue wage notices pursuant to New York’s Wage Theft Prevention Act. 

New York City Safe and Sick Time Expansion

The first thing to note is that employers in the five boroughs are now required to provide 32 additional unpaid hours of time every year. 

This time does not roll over and can only be used after the employee uses all of their available paid time off. For those businesses that are impacted by the temporary schedule change law, this additional unpaid time is meant to eliminate the need for that worker consideration, and effective Feb. 22, 2026, you no longer have to abide by those rules.

On that same date, the reasons that employees may take the leave expands. The additional reasons to grant the use of the time include workplace violence incident response, caregiving, a “public disaster”, and to pursue benefits or housing. 

Prenatal Leave Policy and Posting

It is important to note two things about this. 

First, the additional 32 hours above is in addition to the prenatal leave (up to 20 hours of paid prenatal leave in a 52-week period) added last year statewide. Second, however, is that in New York City there are additional rules

Specifically, employers must include the prenatal leave in their policy and that policy must specifically state that there is a separate bank of 20 hours for this purpose and any rules regarding its use including the increments in which employees may take it.

The policy must explicitly state that the employer will not require details regarding the Employee’s condition and that any information it does receive shall remain confidential. 

The policy must be added to the notice of employee rights and employers must provide a statement with each pay stub that includes the amount of paid prenatal leave used during the pay period and the total remaining balance of paid prenatal leave for the remainder of the 52-week period.

New Workplace Violence Policy and Training

In addition to the annual sexual harassment training law (mentioned above and discussed in December’s article), retail employers are now required to conduct annual workplace violence prevention training

The new law requires employers with 49 or fewer employees to conduct the training every two years; those with 50 or more to conduct it every year. The law also mandates a specific policy, set by the U.S. Department of Labor, be implemented. 

Pay Data Reporting

On Dec. 4, 2025, the New York City Council overrode a mayoral veto to enact a law that imposes requirements that mirror the federal EEO-1 reporting. The law is designed to generate data the city will use to conduct studies and generate recommendations for addressing pay disparity. The law applies to employers with 200 or more employees, and imposes civil penalties for noncompliance. 

In terms of implementation, it will be a while. This year, the city will decide which agency will handle the law. Next year, that agency must develop the reporting form. The following year, within the next year, that agency must publish a standardized reporting form; and within one year after publication of the same, covered employers must submit their first annual report. 

The Coming Year

Though the legislative changes for New York employers are not dramatic this year, what has changed noticeably is the rate and depth of enforcement. Not only are compliance penalties and audits on the rise by both state and city agencies, but their inquiries go deeper, including into records of training, and copies of policies along with confirmation of receipt. Employers need to be aware of their obligations, on top of changing laws, and have mechanisms in place to ensure compliance.

Rachel Demarest Gold has been serving Abrams Fensterman as a partner since 2016 and has worked in the labor and employment, criminal, government litigation, and law and policy practice groups.

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