Intro to New York Labor Laws

New York State has launched a mandatory Secure Choice Savings Program, a state-sponsored retirement plan for private-sector employers who do not already offer a qualified retirement plan. Eligible employers are those with 10+ employees, in business for at least two years. Deadlines are staggered based on company size, beginning March 18, 2026, for employers with 30+ employees.. Administration of the program is handled by the state, free for employers, and requires no contributions. Customers who operate in New York and participate in Justworks’ 401k plans through Empower generally meet or exceed the state’s requirements.

New York has significantly raised the maximum weekly unemployment benefit, effective immediately, increasing it from $504 to $869 per week. To fund this increase, the state has raised the wage cap for unemployment insurance from $12,800 to 18% of the state's average annual wage, which will result in increased employer contributions. However, to offset this cost for employers, the annual Interest Assessment Surcharge (IAS) charge has been eliminated. This change is estimated to provide employers with approximately $100 per-employee savings beginning in 2026.

The New York State Department of Labor (NY DOL) recently issued new guidance, including a model policy, and a model training to assist covered employers in complying with the Retail Workers Safety Act, which went into effect on June 2, 2025. The guidance clarifies that the law applies to anyone engaged in retail sales, including third-party employers with staff working in a retail store.

Employers should develop and implement prevention policies and interactive training programs that are available in the employee’s primary language while also establishing and maintaining records of all workplace violence incidents.

Under the revised law, employers must now provide an additional 32 hours of unpaid safe and sick leave to covered employees. The unpaid leave must be front-loaded upon hire and again at the beginning of each benefit year for immediate employee usage. Additional updates include a broader range of permissible uses for both paid and unpaid safe and sick time. New permissible uses include absences due to a public disaster or public health emergency that causes business, childcare, or school closures, or governmental “stay home” directives.

NYC employers should begin updating their leave policies to incorporate these changes. Specifically, employers should prepare to provide this additional unpaid leave and update their employee handbooks. Crucially, employers must also adjust their payroll systems to track and display both paid and unpaid time off on employee pay stubs, as required by the new law.

New York City has officially integrated the state’s new Paid Prenatal Care leave, which went into effect early this year. The amendment applies to employers of all sizes and requires employers to modify their ESSTA policies to include paid prenatal care leave entitlements. Employers are required to provide written notice of the updated leave policies to employees upon hire, within 14 days of the effective day or at the employee’s request. 

Additionally, the amendments also require employers to distribute and post the updated employee Notice of Employee Rights and maintain record of receipt. Furthermore, employers must document on employee pay stubs or other similar documentation, the amounts of paid prenatal care leave used and the total remaining balance for each applicable pay period.  

Employers should carefully review the new ESSTA requirements and update their leave policies, accordingly. Non-compliance with these new ESSTA rules could result in employers facing individual lawsuits.

Governor Hochul recently signed an amendment to the Retail Worker Safety Act, which will now go into effect on June 2, 2025 (rather than March 3, 2025). The amendment changes training requirements for smaller retail employers. Employers with fewer than 50 retail employees must provide training upon hire and every two years thereafter, while those with 50 or more retail employees must provide training at hire and annually. As previously reported, the New York Department of Labor (DOL) will publish a model policy that retail employers can adapt. Retail employers should review the changes to the law and make preparations as needed. Employers are encouraged to monitor the New York DOL website for further guidance.