Intro to New York Labor Laws

As previously reported, New York City expanded its Earned Safe and Sick Time Act (now the “Protected Time Off Law” or the “Law”) to require an additional 32 hours of unpaid leave and broaden covered uses. The Department of Consumer and Worker Protection (DCWP) has now issued updated FAQs (opens in a new tab)and a revised Notice of Employee Rights(opens in a new tab) addressing implementation of these changes.

The guidance confirms that (1) the full bank of 32 hours must be made available immediately to existing employees and upon hire for new employees (no waiting period or proration); (2) covers new use-cases, including "Public Disasters" (government-ordered travel bans) and childcare disruptions such as a babysitter canceling; and (3) outlines policy disclosure requirements. 

NYC employers should distribute the updated Notice, review leave policies, and confirm proper tracking of paid and unpaid leave balances in anticipation of increased enforcement.

New York’s “Trapped at Work Act” is now in effect, imposing new limits on the use of employment‑related promissory notes and similar agreements that can restrict an employee’s ability to leave a job. The law prohibits employers from requiring employees (including contractors, interns, and volunteers) to repay training costs, sign‑on bonuses, relocation reimbursement, or other payments if the employee leaves before a specified date. 

Employers should review and revise any agreements or practices that tie repayment obligations to continued employment to ensure compliance with the new law.

New York amends the Fair Credit Reporting Act to prohibit employers from requesting or using an applicant’s or employee’s consumer credit history when making employment decisions — including hiring, compensation, or terms of employment.

The ban defines “consumer credit history” broadly to include credit reports, scores, and other credit‑related information obtained from the individual. Limited exemptions allow use of credit history for certain roles (e.g., peace officers, positions requiring bond or security clearance, or roles with access to trade secrets) or when required by law.

Employers should review background checks and hiring procedures now to prepare for the April 2026 effective date and ensure compliance with the new restrictions.

As previously reported in January 2026, New York enacted the “Trapped at Work Act”, restricting certain employment-related repayment agreements. Governor Hochul has now signed a chapter amendment expanding the law’s scope, clarifying exceptions, and revising the effective date. The amendment confirms the law applies to employees and prohibits repayment agreements tied to continued employment unless a statutory exception applies. Limited exceptions include certain voluntary tuition arrangements for transferable credentials, repayment of non-educational incentives (such as bonuses or relocation assistance under specific conditions), property voluntarily sold or leased to employees, sabbatical leave terms for educational personnel, and collectively bargained agreements.

The amendment also revises the original “effective immediately” language and provides that the law will take effect on February 13, 2027.

Employers should review repayment agreements, update templates as needed, and ensure any repayment provisions align with the amended requirements.

New York City has enacted new pay data reporting requirements requiring private employers with 200 or more employees working within New York City to submit annual reports containing pay information and workforce demographic data (including race, ethnicity, and sex) to a designated city agency. The reported data will support a citywide pay equity analysis and help identify potential disparities in compensation across industries and demographic groups. While the reporting framework has not yet been finalized, employers should continue to monitor developments and begin preparing to comply once requirements are established.

Employers should begin preparing to collect accurate pay and demographic information to ensure they can meet upcoming reporting obligations.

New York State has launched a mandatory Secure Choice Savings Program(opens in a new tab), 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.